View Single Post
  #47 (permalink)  
Old 06-17-2007
goober's Avatar
goober goober is offline
President

 
Member Since: Apr 2005
Location: massachusetts
Posts: 12,186

   
Re: Cost of Software and Death of Innovation

Quote:
Originally Posted by timj219 View Post
The fact that a particular business model works for one producer does not mean it will work for all. Your citation of grateful dead only applies to live musical presentations and not to the many other digital products being stolen.

Properly priced? The "proper" price is determined by the producer - not the thief.
Future business models do not justify current theft.
If a business model doesn't work, the firm fails, that's true of software companies and yogurt stands.

If the price a company charges results in nobody buying their product, they go out of business, because the product was priced wrong.

Laws only work when enforcement is practical.
We have laws against software piracy, and laws against drugs, they aren't working.

I wasn't making a moral judgment, I was just stating a fact, that a business needs to produce something that people are willing to pay for, or the business model fails.

The internet, and everything that goes with it, is part of the present day business environment. Business models that don't take this into account will fail. That's the way the system works and calling it "stealing" misses the point, it's reality and companies that don't address it will fail.

The current copyright situation can only be enforced with a massive invasion of privacy, and draconian penalties leveled against people who for the most part aren't the ones who actually did the downloading, huge fines are being leveled against the parents of kids who download. That particular business model is doomed.

Distribution of information, and music, movies and software are just information, is moving from the physical media, where the "pay for each copy" business model works, to the internet, where the pay for each copy model does not work, unless the economies of the internet are reflected in the price.

Free market theory tells us that the long run equilibrium price is equal to the marginal cost of production, what is the marginal cost to produce one additional copy of a file?
__________________
“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address
Reply With Quote