DVDs may be encoded with one of six region codes, preventing videos sold in one region of the world from being used in another region. Why might film distributors use region codes?
A) to prevent people from buying videos in a low-price region and then reselling them in a high-price region
B) to make it easier to charge the same price in different locations
C) to minimize the menu costs of frequent price changes
D) to reduce the cost of collecting sales taxes, especially in areas with different tax rates

Question

Quizplus · Accepted Answer

Film distributors may use region codes to prevent people from buying videos in a low-price region and then reselling them in a high-price region. This helps to maintain price discrimination and prevent revenue losses.

DVDs May Be Encoded with One of Six Region Codes