It really gets me, the way people insist that everything under the sun has to have a specific, profitable dollar value. If you want to talk about business models, just look at HP inkjet printers. Huge business, worldwide market domination, yet they sell most of their printers for less than cost. I kid you not. Furthermore, the retailer turns around and resells it for even less than HP sold it to them for.*
In effect, both the producer and the retailer are giving away the merchandise. Why? Because they have found a way to make an alternate business plan work. Would anyone question Office Depot's printer & accessory sales? How about the largest computer & printer manufacturer? Are they 'throwing money out the window'? Fact is, they've found a way to make it work -- and I earnestly believe that any business can.
Take another example: Techdirt. Granted, I'm not personally familiar with Masnick's take home pay -- but this web site surely is not a nonprofit hobby. I personally read this blog on a daily basis. I don't pay a dime to do so. Yet, somehow, there's always enough for me to read, and the quality hasn't dropped. According to the doomsayers, either the blog will soon shut down, the quality of the posts will drop, or I'll start being forced to pay each time I read it. Let's see if they're right. (the last 11 years would tend to make me think they're not...)
*I used to be a manager for Office Depot. I saw many printers sell for less than the wholesale price -- especially inkjet fax machines. They were typically $20-30 less than wholesale.
These are just two examples of this; I could go on. (Gas Stations, Sony Playstation,....)
On the post: EU Gov't Study: People Won't Pay For Content; New Business Models Needed
same old whiners...
Take another example: Techdirt. Granted, I'm not personally familiar with Masnick's take home pay -- but this web site surely is not a nonprofit hobby. I personally read this blog on a daily basis. I don't pay a dime to do so. Yet, somehow, there's always enough for me to read, and the quality hasn't dropped. According to the doomsayers, either the blog will soon shut down, the quality of the posts will drop, or I'll start being forced to pay each time I read it. Let's see if they're right.
(the last 11 years would tend to make me think they're not...)
*I used to be a manager for Office Depot. I saw many printers sell for less than the wholesale price -- especially inkjet fax machines. They were typically $20-30 less than wholesale.
These are just two examples of this; I could go on. (Gas Stations, Sony Playstation,....)
Next >>