The GreatStuff Network is really a testbed for evaluating and testing the concept, IMO. No, they aren't going to realize significant revenue from GSN ever probably.
I see the major revenue streams coming in from CD-ROMs/DVDs bundled with loads of software. Imagine a content provider (ie Acclaim), bundling all of their sports simulation games on one CD. These CDs are then distributed for free to anyone who wants them. Distribution could be in the form of snail mail, freebies at the local CompUSA, grocery store, whereever.
Now, you bring this CD home and load it up on your PC. Up comes a snazzy content menu for you to choose from:
Football
Baseball
Hockey
Basketball
Each has their associated prices for how much is costs to play by the minute, quarter, period, half, game, etc. So, maybe you can play the 1st half of a John Madden 98' football game for 25 cents. Of course, a cap would be set on each game that would give you a licensed copy if, over time, you put enough quarters into the game.
What you don't have a WaveMeter installed? Here is the killer way to distribute the WaveMeter. If a user fires up the CD or DVD, the system can detect the presence of the meter. If one isn't there, guess what? An order form can be presented right then and there to order one. There could even a promo sponsored by the content provider for a free credit (say $5) on the meter to try out their stuff.
This all makes perfect sense to me. And I believe it would revolutionize the software distribution industry.
This leads me to an important question for the Spragues:
Is the WaveMeter easy enough to install by a typical end-user. Or are we counting on only new equipment purchases to get the installed base?
This is a key point. And I don't think I've seen this discussed before. I would appreciate a response from anyone who might know the answer.
So, MFG, I don't think you can extrapolate anything meaningful by asking SI folks whether they have signed up for GSN. The "killer app" is in the other forms of distribution.
Good investing...
Scott Edwards
SlateColt Technology Company |
