Re:The Impending Doom of Expiring Root CAs and Legacy Clients
by tialaramex on Monday June 08, 2020 @12:54PM
(#23458286)
Maybe. There can be a problem with the size of that premium.
Suppose end consumers think fixing this is worth $50 but not worth $100. If the outfit selling a "SmartTV" gets $80 lifetime value from the "SmartTV" features like forced advertising and margins are slim you probably find you can't offer this "dumb TV" for $50 extra without losing money, and you have no customers and go out of business.
On the other hand, it could go pretty well. We know advertisers see people who buy premium products (which such a "dumb TV" would be since it costs extra) as more valuable in a lot of categories, so maybe you charge $50 extra for the dumb TV and - as it takes off - that undercuts the advertising income of the existing products, so they have to raise prices to remain profitable and that actually improves your affordability compared to the market. Or else they make advertising even more intrusive and pervasive to keep the revenue up, and it makes your $50 premium appear a bargain by comparison for those sick of advertising.
Suppose end consumers think fixing this is worth $50 but not worth $100. If the outfit selling a "SmartTV" gets $80 lifetime value from the "SmartTV" features like forced advertising and margins are slim you probably find you can't offer this "dumb TV" for $50 extra without losing money, and you have no customers and go out of business.
On the other hand, it could go pretty well. We know advertisers see people who buy premium products (which such a "dumb TV" would be since it costs extra) as more valuable in a lot of categories, so maybe you charge $50 extra for the dumb TV and - as it takes off - that undercuts the advertising income of the existing products, so they have to raise prices to remain profitable and that actually improves your affordability compared to the market. Or else they make advertising even more intrusive and pervasive to keep the revenue up, and it makes your $50 premium appear a bargain by comparison for those sick of advertising.