An Apple fanboy's lament

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The "Entertainment Tithe"

"Consumer electronics manufacturers and entertainment giants need put the consumers first."

The problem is that the consumer electronics field has become so competitive, that simply coming up with great products alone isn't enough anymore for long-term profitability. You could invent the greatest gadget, but within 6 to 9 months, someone else is going to clone it. It might be only 80% as good, but it will cost half as much. You'll have to be more competitive and there goes your profit margin. In the meantime to assure the future of your company you had to throw most of the profits into what you hope will be the next greatest gadget, which may or may not be a hit.

So phooey with that everyone decides, and they come up with the "Entertainment Tithe". Basically, it's all about selling a gadget subsidized by some kind of subscription that garantees long-term income by tying users to your product line and extracting regular payments from you. Apple has mastered this with the iPod-iPhone-iTunes machine. (Notice that you have to load iTunes to fully use your iPhone, even if you have no interest at all in downloading music) It's conceptually brilliant, although not in the best long-term interest of the consumer.

Posted by: JohnMcGrew@...   Posted on: 12/19/07 You are currently: a Guest | Members login | Terms of Use

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