Guba Ups Biz 1,000% on Slashed Prices11 Sep, 2006 By: Erik Gruenwedel
Movie download-to-own service Guba.com Sept. 11 announced it had boosted sales 1,000% and doubled traffic to the site after cutting prices 50% during a recent 30-day trial period.
The San Francisco-based service, which features more than 300 titles from Sony Pictures Home Entertainment and Warner Bros. Entertainment Group, among other content providers, announced through the end of the year that it would offer new releases for $9.99 from $19.99; catalog fare for $4.99 from $9.99 and episodic TV programming for 49 cents from $1.99 to $2.99. Movie rentals will continue at 99 cents per day.
Privately held Guba would not release actual download sales figures.
With Amazon announcing a download service last week and Apple reportedly on tap to do so Sept. 12, Guba apparently doesn't mind firing the first shot across the bow of a potential price war among download services.
“I think it already has [started a price war] but it is not a concern to us,” said a Guba spokesperson. “It just means that people will start using this service more.”
Guba CEO Tom McInerney said download services have to be “keen” about determining and understanding the correct pricing model.
“Price obviously matters and we intend to experiment as much as we can to determine the right model,” said McInerney. “We're of course quite pleased to be ahead of Amazon and Apple on this.”