Why are HD downloads so expensive?

I have been told that it's actually more costly for Netflix to distribute video electronically than to send you the red envelopes. If so, then we could have the same situation here. But cutting out the retail middleman would more than make up for that.

Perhaps it's not the download sites that are setting the prices but the labels, who are trying to manage channel conflict and not kill their retail partners too quickly.

Netflix thing.....I don't dispute that but this is not a streaming service so the analogy is not quite fair.
I think you will find that HDtracks are the ones setting these prices not the labels.
My friend in the industry tells me that his company (very famous jazz label) does not set a retail price for HD downloads....just a minimum resale price to protect other distribution channels.

Mauidj

Willing buyer, willing seller. God Bless America.

Paul...I guess that is the fundamental truth and answer to my question.
Problem is that that attitude will never allow them to break into the mainstream or entice new listeners into HRes audio.
Make the price exclusive and you have an exclusive product.
Seems really short sighted to me...but I'm not conversant with their economic needs so maybe this is the only way it can work for them.
Just count me as one of the unwilling.

I don't think that it is cheap or easy to set up an operation like HDTracks. If it is, compete with them, put them out of business and make a fortune.

If downloads are too expensive for you, stick with your cds. It's OK. You've probably got a bunch of them that you haven't listened to in a long time.

I don't know if you've noticed, but the price of everything is going higher. I could be wrong but I don't think that's going to change anytime soon.