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Technology Stocks : WAVX Anyone?

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To: jas singh MD who wrote (2454)5/29/1998 11:24:00 AM
From: andrew peterson  Read Replies (1) of 11417
 
Interesting article. Some good points on the skeptical side, but there are a lot of things I'd take issue with. First is the premise in the lead sentence -- that the WaveMeter is primarily about renting software. That's one use, but putting it the way the article does, it makes the meter sound like a very limited device. The meter is a way to buy stuff -- it gives people more options of ways to buy stuff, not fewer. It opens up possibilities rather than limiting them. If you have the option of trying before you buy, maybe you'll do that, especially for a big purchase.

On the analysts's comments:

"Overall I'm pessimistic on metered content. Like micropayment, it relies on capabilities built into the client -- i.e. the user's PC. That needs to be widespread with a critical mass,"

That's increasingly a moot point -- and an odd comment to make just when WAVX is taking the steps needed to achieve that critical mass.

"Part of the lack of interest on the part of consumers, McAteer believes, is an aversion to monitoring technology built into their PC, be it a smart-card reader or a usage meter."

This too is a moot point if the meter is already on your computer. Sure, you don't have to use it, but if you've got a CD with a hot new game sitting on your desk and you can try it out for a few cents, you're likely to do that. It's just a matter of offering the right enticement. Listen -- credit card companies track all your moves too, but we're not resistant to them. Why? The reward for their use is just too enticing. The same will be true of the WaveMeter.

"Nor does McAteer see the pay-as-you-go market. Consumers, he said, like to own. "There is a real value in ownership." Part of that value is the consumer's ability to take their time in getting to know a piece of software, he said."

Hello! You can buy stuff with the meter. Buying means owning. In fact, with a meter you can get to know it before you buy it. This is an argument for, not against metering.

"But in this case, he points out that there are several parties that have to build it -- from chip suppliers like Standard to PC manufacturers to software companies, including Microsoft Corp. building metering APIs into its operating system."

Now this one is interesting. Is it in fact true that metering capabilities will need to be built into operating systems? I've never heard that before and I don't understand why it would be true. Could someone else help out with this question?

Responses, anyone? I'm glad to have a negative case made. It will sharpen our abilities to make our side of the argument.
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