I am not an economics expert by any means, but a friend told me the following 
story. I cannot divulge the names on a public list because I do not want to get 
him or me in trouble. 

He is highly placed at a software company that has pretty much a monopoly in 
its area of expertise. Lately the people running this corporation have decided 
to go to a rent model. They have not done this because it's popular with their 
customers. Their customers hate the idea, and many of them face significantly 
higher costs from renting than buying. The programmers are not happy with this 
either because for the most part programmers don't like the idea of screwing 
over the people who use their software. 

But compensation/bonuses for the mucky mucks at the company depend on the 
reliablity of revenue streams which, of course, would rise with the rental 
model. (So it's not really about greater profits overall.) 

The customers can't go buy someone else's software because no one else offers a 
competitive product. So they're stuck. 

I don't know how widely applicable this scenario is, but thought it might 
provide some real/current data related to this topic. 

Doug: this might be an interesting topic for a radio show. 

Joanna 


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