The document discusses pricing strategies for a television company. It describes penetration pricing as setting an initially low price to attract customers and gain market share, even if it means lower profits initially. Skimming pricing is setting a high initial price for an innovative new product to earn high profits before competitors enter and the price decreases over time. For a new high definition television company, skimming pricing would be the best choice to quickly earn profits, recover development costs, and build brand perception before competitors emerge and alternatives become available.