Linked by David Adams on Tue 26th Oct 2004 16:30 UTC
The software industry is undergoing a gradual transformation, and consumer fatigue is at its root. The licensing model that has formed the basis for the modern software industry is facing challenges on many fronts, and the industry is scrambling to keep its footing. Where this period of change may lead software producers and consumers isn't quite clear, but some trends are emerging. Since the proliferation of the internet, unauthorized redistribution of digital goods has become rampant. But although software sharing probably won't kill the software industry, the reasoning behind it shares some pedigree with the customer revolt that promises to transform the way software is sold.
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The cost of software is like the cost of diamonds -- artificially created and maintained.
Your first post was interesting, but the above sentence is false. Demand and Supply usually determine prices, and the theory explains the differences of diamonds and water prices perfectly.
The method just don't works for goods with margin costs of zero for additional usage: Busses, Cars, Planes, Radio Stations are nice examples (within their capacity). It doesn't matter if there's one more consumer, and thus free riding happens. The problem is that all the free-riding usually makes the service a loss. Thus, nobody would usually be interested in providing it without additional rules.