Web Design. Development. Optimization. RSS 2.0
 Wednesday, January 25, 2006
On November 18, 2004, I wisely wrote:
The U.S Senate just passed a bill that would raise the Federal Debt Limit by $800 billion to $8.2 trillion. Who wants to take bets on how long that $800 billion is going to last?
Now, the U.S. is within a easy reach of the $8.2 trillion limit. They'll be there in a few weeks. Whoever chose "14 months" as the answer to my rhetorical question is the winner. Congratulations! Everyone else in the United States is the loser. So here we are again. We've reached the debt ceiling. The U.S. is at risk on defaulting on some payments. Congress will probably rubber stamp another $800 billion or more increase in the ceiling. When Ronald Regan took office in 1981, the entire U.S. debt was $1 trillion. Now that is what the U.S. borrows every year. Something is not right here. Which American politician has the guts to stand up and say something?
Wednesday, January 25, 2006 2:10:12 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
Politics
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 Tuesday, January 17, 2006

What am I doing with myself these days?

 

Tuesday, January 17, 2006 8:07:16 PM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
The Blogging Life
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 Sunday, January 15, 2006

Man, these pirated DVD's are getting out of control. No, wait. They were out of control before. But still, the point is valid. It's crazy when you think about it.

The prices have come down some. 4 DVDs for $20 - so we're back at the $5 each price point.

How tempting is it, to be able to buy 8 or 12 pirated DVD's, take them home and watch them on that new home theater system you got yourself for Christmas? All for less than the cost of one movie at the theater with your family. And 10 times less hassle to boot.

When I see pirated DVDs for sale at the mall... I just can't believe that they are allowed to operate.

Yet it's conflicting. It's such a good deal. And it's so difficult to imagine that it's hurting anyone. We haven't seen movie studios going out of business. The industry doesn't seem to be hurting publicly. It would be an interesting social study on how regular law-abiding citizens become law-breaking pirates when presented with “Memoirs of a Geisha” for $5.

 

Sunday, January 15, 2006 12:26:59 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
The Blogging Life
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 Friday, January 06, 2006

I like the concept of this from 43Folders - “Cancel Something“:

The important thing is to find at least one thing that’s become a noise generator, time sink, or attention sieve, and be rid of it. The hack isn’t how big a change it brings in your life — remember these are modest changes — it just matters that you mindfully elect to turn something off for a little while. That little scrap of time or attention you gain back is then well and truly your own.

Worth a read.

 

Friday, January 06, 2006 10:15:01 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
The Blogging Life
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 Thursday, January 05, 2006

Whohoo! I'm diving head first into the world of podcasting. Please come hear the first episode of my new series, “Making Money Podcast”.

Don't worry. This show is not about get rich quick schemes. You won't hear me talking about domain name squatting, setting up link farms, or how to make a killing in the growing Internet pharmacy business.

It's about ideas. Business ideas, investing ideas, and marketing ideas. I hope you come away from each show with one or two things that make you think, and perhaps lead to you to something big.

This show can be downloaded through iTunes. And you can subscribe to the RSS feed in your reader of choice.

 

Thursday, January 05, 2006 12:29:10 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
Business and Investing
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 Tuesday, December 27, 2005

One more thing - while doing some research for my last blog post on movie piracy, I heard a CTV reporter give the following quote: “... police seized roughly 150,000 pirated DVDs... worth about $40 million dollars.”

I'm no math wizard, but that puts the DVDs at $266 each. 150,000 pirated DVDs would only have retailed for $750,000. But then again, with the movie industry telling the media what to say, I guess they need to over inflate their case.

 

Tuesday, December 27, 2005 12:19:55 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
Technology | The Blogging Life
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Recently, there was a major movie piracy crackdown at a mall near me. Police arrested 15 people, in 13 stores - seizing 150,000 DVDs.

That may seem like a lot of people, and a lot of DVDs, but I was at this mall today (less than 1 month after the arrests) and the movie stores are back in operation. The oddest thing to note is that the prices have risen - $8 for a pirated DVD disk, instead of the old price of $5. So obviously the risk has increased and so must the reward. (Also, a couple of stores have closed, so there is a bit less competition.)

But these stores have been selling these illegal DVDs for months (a year at least). And most of the stores are back in operation. If it takes another year to close them again, then essentially they will never be closed. If you take a year to remove a weed once it pops up, you will never be rid of weeds.

The movie (and music) industries have a major problem on their hands. To date, they have been hesistant to respond creatively to it. The problem is that the entertainment industry creates some highly desirable products that are expensive yet easily copied. Also, people would like to enjoy their entertainment in many different forms, some of which the industry does not allow.

When expressed like that, there are only four things that can be changed:

a) the desirability of the products

b) the expense of the products

c) the ease at which they can be copied

d) the entertainment media

To date, the entertainment industries have only been focusing on (c). They introduce new copy protection schemes, force hardware manufacturers to implement them, and try very hard to quash new advances in technology. They will sue TiVo if they make it easier to transfer recorded shows to your iPod. No peer-to-peer transfer service is acceptable, no matter what legitimate uses it might have. They've gone so far as to rewrite the core of the Windows OS using the same techniques as virus writers to make it harder to play music CDs on your computer.

Price is an important variable in the equation, to which the industry has not really addressed to date. As $5 (or $8) pirate DVDs are thriving in the shopping malls, people do not necessarily want to pay $30 for a DVD. $25 for a music CD is a bit much as well. So one way the industry can combat piracy is to significantly lower the cost of its products. What if a CD cost $8? Or a DVD cost $10? The media itself only costs pennies, so there is still plenty of profit for all parties involved at those prices. And people are far less likely to pay $8 for a crappy camcorder copy, instead of $10 for the real thing.

Now some may point to the advent of the 99 cent music download as a new breakthrough on price. I'm not fooled. A whole CD download still costs $14, and the cost of packaging and distribution is almost nothing. Downloads are still too expensive. Songs should cost 10 cents each.

Finally, we get to the issue of the entertainment industry not allowing consumers to enjoy their products as they wish. They set artificially low limits on the “number of burns”. So if I purchase a song through PureTracks, I can only make three copies. And if I want to enjoy that music on a non-WMA player like the iPod, I have to either break the law and turn the song into an MP3 or purchase it again in another format.

Another related issue to media is the way the movie industry controls the format. Movies must come out in theaters first. Six months later they come out on DVD. This idea has been expressed before: but what if I don't like going to the theater and I want to watch the latest Harry Potter movie at home. Why should I wait if I am willing to pay for the DVD? There is no reason to wait except that the industry wants your money twice (or more than twice if they can). So you pay to see it in the theater, and then buy the DVD.

The worst example of this was the Lord of the Rings movies. Each movie was released three times - once in the theater, once on DVD, and then once again a year later on “Extended Edition” DVD. How many LOTR fans saw the movie multiple times in the theater? How many bought the regular DVD and the special edition several months later? Is one movie worth paying $150 to see?

So here we are at the end. No further to the ultimate solution probably. But as the subject line says, Something's Got to Give. The movie industry will allow itself to be destroyed by piracy while they desperately hold on to the old model of overcharging consumers, and forcing movie releases to follow the traditional schedule. Thus regular, law-abiding people (of all ages) are forced to go and buy pirate DVDs by the armful. Why pay $150 to see a single movie when you can see 30 for that price?

The first step to defeating piracy has to be “stop ripping the consumer off”. And yes, maybe Jim Carrey won't be able to make $20 million per movie. Maybe this will force movie budgets back down from the $200 million per picture heights they are at. But these changes must happen. They simply must. Consumers are making it happen with or without the industry's approval.

 

Tuesday, December 27, 2005 12:07:33 AM (Eastern Standard Time, UTC-05:00)  #    Comments [0] -
Technology | The Blogging Life
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The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.

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Scott Duffy
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