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:
"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.
Post a Comment