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May 10, 2005

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Given all the apparent advantages of being open, it would seem that having an open network would be preferable. Well, yes, from a consumer perspective, but not from the distributor’s perspective.

Ben Cliff

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Is that much of this stems from the idea that the most valuable content more likely the content owner is to use a closed distribution mechanism to deliver this valuable resource for consumers.

Terry Heaton

This is good stuff, Alex, and I appreciate your perspective. Of course, the $64,000 question is how one makes money in an open distribution system, especially when that system allows the user to eliminate disruptive messages in the form of advertising.

Conventional thinking assigns value to open distribution, because it's free. But I think that's only a part of the reality. Free, yes, but free from what? I don't think people are stupid -- they realize it costs something to produce all this content -- and I don't think they're opposed to paying for it. The issue, I think is one of control and passivity. Give users control over what ads they see, and they'll respond favorably.

But I digress.

Cheers,

Terry

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