The price of everything and the value of nothing.

I've commented before on the issue of "pirate" copies of goods, and my views are clear - if your product is being pirated, then it's almost certainly because it's overpriced. But what exactly do I mean by this? The value of an article to me is what I am prepared to pay for it. The price of that article is the amount the producer is demanding of me for it. It's where these two amounts substantially differ that the problem arises. There was a bloke on the telly this morning extolling the virtues of being able to download a copy of "King Kong" for £20 - about the same price as the DVD. Now I'd quite like to watch King Kong, but the question is - how much (in monetary terms) would I like to watch it? Certainly not £20 worth. A fiver - yes, that's more the mark. So if I go down my local car-boot and see a DVD of King Kong for a fiver...? I've got what I want at a price I'm willing to pay (and I'm prepared to accept that it probably won't be an A1 copy). I wouldn't have paid £20 anyway, so nobody's lost a sale. So what's the problem?