Many (most? the vast majority?) of people who go to the movie theater will see a movie even if the movie they intended to see is sold out. Plus, they are not price-conscious. So, it makes sense to keep all the movies at a high price so that the customers end up paying high prices for movies they didn't go to the theater to see. "A rising tide lifts all boats." If they went to the theater to see a particular movie, and it was sold out, they will pay for some other movie this weekend and then try again next weekend (and the next next weekend if necessary) until eventually they see the movie they originally intended to see. LoTR is sold out three weeks in a row = many customers bought three or four movie tickets, instead of just one.
If they were price conscious, they would rent it for a dollar from RedBox when it comes out on DVD. Or, they would go to the discount movie theater to see it for $4. Or, they would download it for free off the internet.
On iTunes, there is no such thing as "sold out." And, everybody is price-conscious because everybody under 30 knows you can just get the songs for free off the internet if you are willing to put up with the hassle. Apple has recognized that people value that hassle at approximately $0.99. If people were willing to pay $2.49 for a song, it wouldn't mean that the song was better than a $0.99 song. It means that they would probably pay $2.49 for every song, since they value the convenience at about $2.49.
If they were price conscious, they would rent it for a dollar from RedBox when it comes out on DVD. Or, they would go to the discount movie theater to see it for $4. Or, they would download it for free off the internet.
On iTunes, there is no such thing as "sold out." And, everybody is price-conscious because everybody under 30 knows you can just get the songs for free off the internet if you are willing to put up with the hassle. Apple has recognized that people value that hassle at approximately $0.99. If people were willing to pay $2.49 for a song, it wouldn't mean that the song was better than a $0.99 song. It means that they would probably pay $2.49 for every song, since they value the convenience at about $2.49.