On Wed, 02 Feb 2005 09:16:27 +1300
Carl Cerecke <[EMAIL PROTECTED]> wrote:

> 
> Also, one very important factor was that everybody treated (and most 
> still treat) software as a *product*. It isn't really a product, because 
> it isn't produced. Sure, it's created - but that's a one-off cost. After 
> that media duplication and distribution is very small. (There's 
> marketing to be thrown into the mix to complicate things a bit too)

support is the one thing left out of this analysis. Support is expensive.
Not many do it well. Its also a reason why some open source products die.
Those who know it best get sick of getting email 24/7 asking questions,
silly & otherwise.

of course with open source theoretically anyone can read the source and
take up the support role. Undertsanding someone elses source is  another
thing!

>If 
> the selling price is large in comparison to this cost, then, once the 
> cost of creation has been covered, the profit margin is ludicrously high 
> compared to a real product like, say, a loaf of bread.
> 
> It is for this reason that free/open source software exists - the 
> creation cost of the software is covered by the goodwill of the 
> programmer(s), and the distribution is done at no cost over the 
> internet. You've still got marketing in there, but that's usually 
> word-of-mouth (or the equivalent internet saying).
> 
> This is also the reason that RIAA and MPAA are having fits. In fact, any 
> information (books, movies, music etc.) only have one major cost: 
> creation. After that, worldwide distribution can be comparatively cheap 
> because of the internet. This is why the organisations that currently 
> control distribution of information (and make a lot of money from it) 
> are upset.
> 
> This has rambled on a bit long. Sorry.
> 
> Cheers,
> Carl.

-- 
Nick Rout <[EMAIL PROTECTED]>

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