Public vs. Private Information on the Internet

Does Hardware Drive Software, or Vice Versa?

Why Have Past Consortia for Compatibility Failed, and Why Would DECE Now Succeed?

So Are Device-Content Systems Moving Toward Compatibility or Incompatibility?

There are two trends occurring in the digital world that seem to be at odds with one another.  The first is that towards incompatible hardware/device – software/content ecosystems and the other is towards compatible ecosystems.

Myhrvold’s Business Model

Historical Trends in Industry Funding for R&D and Patenting

Will Myhrvold’s Model Work?

In recent articles in both the NYT and the Harvard Business Review, Nathan Myhrvold, former CTO of Microsoft and current Founder of Intellectual Ventures (IV), defended his company against being labeled a “patent troll” and described the actual intent of IV:

What weʼre really trying to do is create a capital market for inventions akin to the venture capital market that supports start-ups and the private equity market that revitalizes inefficient companies. Our goal is to make applied research a profitable activity that attracts vastly more private investment than it does today so that the number of inventions generated soars…

I believe that invention is set to become the next software: a high-value asset that will serve as the foundation for new business models, liquid markets, and investment strategies…  like software, the business of invention would function better if it were separated from manufacturing and developed on its own by a strong capital market that funded and monetized inventions…

A functioning invention capital market and industry can enable inventors around the globe to create hundreds of thousands more inventions each year than are being made today. Sure, some of those inventions will be silly or useless. But what matters is the top 1% that will make our lives vastly richer and better. Create an invention capital market, nurture an invention capital industry, and the resulting virtuous cycle will surely transform the world.

The e-Book Pricing Battle

The following is a brief history of the e-book pricing battle that has been taking place. The passage quotes heavily from three articles:

“Publishers, Amazon in Flux in e-Book Pricing Fray” by Phil Wahba and Alexandria Sage, Reuters  

“Amazon Looking Foolish in e-Book Flap” by Therese Poletti, MarketWatch

“Cost of an E-Book Will Be Going Up” by Motoko Rich and Brad Stone, NYT

Being first to market, Amazon established a $9.99 e-book pricing model.

Amazon was first on the market with an electronic book (e-book) reader (e-reader), the Kindle.  Being first to market and having a large market presence together provided Amazon with enough leverage vis-à-vis publishers as to be able to establish a low, fixed sales price of $9.99 for all sales of e-books to Kindle users. This single, low, fixed price for all books is analogous to Steve Job’s iTunes music store pricing model, which initially sold all songs for 99 cents each.

A recent article in the NYT, "The Fight Over Who Sets Prices at the Online Mall" by Brad Stone, discusses that battle between manufacturers, who want retailers to abide by price floors, and retailers, who want the freedom to set prices as low as they please:

Wary of the Internet’s tendency to relentlessly drive down prices, major brands and manufacturers — and now, book publishers — are striking back, deploying a variety of tactics and tools to control how their products are presented and priced online…

Read more... Add new comment