Pricing Cuts Hit Nascent Online Video Market

Heather Green

In a testament to just how quickly the online video market is evolving, Guba is already starting to cut pricing. I am not sure I have ever seen a cycle of evolution happen this quickly, but it certainly underscores how crowded the market already is, even as other new rivals, including Amazon, have yet to make their entry.

Think about this. Guba only began selling major studio videos online in late June. Now, barely two months later, it's slashing prices. Guba is selling downloadable movies for $9.99 on the same day as the DVD release, catalog movie titles for $4.99 and TV show episodes for 49 cents. Rented movies cost 99 cents.

Of course, this is a limited time offer, so it can also be seen as marketing. But with competition building, the novelty alone of being able to buy videos isn't enough to help establish a name in this space.

Before it's here, it's on the Bloomberg Terminal.