The cost of digital content is more than just its dollar price. The cost for digital content such as an iTunes tv show includes the time you spent looking at it and the amount of space it takes up on your hard drive. Time is hard to quantify, unless you’re paid by the hour and you are viewing the digital content during work hours. Bandwidth is another cost. DRM and licensing restrictions are another.
Disk space, however, presents a unique problem. Disk space is the amount of space on your hard drive the content uses. There is a limited amount of space. As your collection of digital content grows, you continue to use up more and more space. Disk space is not like physical space. Disk space requires maintenance, it can fail, it can become obsolete. Generally it is best to back up digital content, because of disk space’s unique vulnerabilities. A backup is a second copy. That means in order to protect valuable digital content, you need to multiply the space it takes up by two. One gigabyte become two gigabytes. You’ll require double the space. Maybe not all the digital content you have justifies this additional cost, but if you paid money for it, it makes sense that you do back up.
Digital content also has many unique attributes that make it different from other goods you buy. For instance, you can make multiple copies of it. You can’t easily make multiple copies of a car you bought, or a can of worms. Another unique property of digital content is DRM, Digital Rights Management, a way that copy right owners protect their right to control the copying and distribution of their intellectual property. When you buy digital content, you don’t actually own the content, you have purchased a license to consume it. There are also other unique properties of digital content, far too many to list them all, but another interesting one is that you can’t really know what benefit an information item will provide you until you have consumed it (this makes it hard to measure the price you’re willing to pay for it). Also there’s no way to return the benefit you’ve received from it - you can’t return your knowledge in exchange for your money back.
The last item I want to talk about is the right of sale and its consequences in the context of DRM. You can’t sell your iTunes videos; when you purchased the content you agreed to this (even if you didn’t read the agreement). You don’t have the right of sale, but your content still has value: you can view it some other time. Or maybe the value it had for you expired once you’ve viewed and the price you paid for it was worth the one viewing. In this case disk space is not a cost, you can delete the content, you’ve gotten your worth from it. But more than likely you’ll care about the money you spent, and you don’t just want to delete your files. Maybe someday, Apple will let you sell your purchases (don’t hold your breath). If you don’t want to lose your content because of its value, you can’t sell it, you’ll have to store it. I’m not a futurist, but I predict that your digital storage needs will continue to grow, and you’ll find your needs will make continuous, and perhaps perennial, withdrawals from your wallet.
What is my point? That $1.99 price for the latest episode of “Lost” or “The Office” does not represent the real cost to you. Think about it. Think about how storing your CD collection in the 1990’s (if you had one) became a real issue for you - but you could sell them. Buying that $1.99 episode will burden you with a lifelong obligation to store it, at least until you get fed up with it and just finally delete it. More than likely, by the time this happens, you will have spent more than just, a dollar and ninety nine cents.