Tuesday, October 04, 2011

Am I Old Fashioned or What? Kindle Pricing

Folks at Digitopoly, channeling Matt Yglesias, are exploring a(n alleged) puzzle in pricing: should Amazon sell Kindles cheap and charge a lot for content?  Or vice versa?

Now I know I'
m a codger.  Nobody seems to be conceptualizing in terms of what I thought was the ancient maxim, i.e., "give away the pipes, sell the bubbles."   Or is this maxim so discredited that no one need speak of it any more?

Footnote:  This new blog is getting more buzz than any introduction I remember (I'm a fan). I wonder how it will look in a month?

1 comment:

Ken Houghton said...

"give away the pipes, sell the bubbles."

That has been AMZN's practice until now. But people are realising that there are alternatives in the low-end (read:non-AAPL) market, and having to compete on the price of the bubbles affects the amount you can afford to lose on the pipe.