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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated

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To: Apollo who wrote (1481)6/9/2005 12:15:06 AM
From: Eric L  Read Replies (1) of 2955
 
PlaysForSure

<< But part of the heightened switching costs lays in the fact that if one has already downloaded a bunch of itunes songs, they will only play on the iPod. IOWs, why switch after one has already invested in an audio library that plays strictly on iPods? >>

Switching costs for consumers ARE high, without question. Through end of this month ~25 million iPODS will have shipped since October 2001 and let's be generous and assume 75% of those are still in service. That's a user base of some 19 million people (~4% of the number of people with a Nokia phone today or 10% of those with a Samsung phone) that are stuck with a consumer electronics product that has extremely high switching costs. Can I sell you some of my vintage BeteMax tapes? For some reason they won't play in any of my existing decks. <g>

Memorize this ...

playsforsure

It means Apple v. Microsoft and The Rest of The World (minus Sony maybe).

It means we ain't gonna license Fairplay-AAC v. freely licensed (but not licensed free) Windows Media® Audio, WMA DRM with the OMA DRM 2.0 Bridge and Media Transfer Protocol (MTP).

The games afoot ...

Music Maestro Please! A little Ride Of The Valkyries maybe ...

- Eric -
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