The thing that gets me is the notion that “The cost of the building blocks of all electronic activity—storage, processing, and bandwidth—has fallen so far that it is now approaching zero” is a truism. Really?
I pay a small fortune for a DSL line… even more for ATT.. then I’m surrounded by systems, storage, displays, TVs, Kindles… all of them priced in the many hundreds of dollars. Actually, what we have going on here is an attempt by the hardware makers (Amazon Kindle) to subsidize their hardware by dominating the margin in content. They are simply attaching a new profit pool and looking to create a virtuous circle inside the customer relationship - which they now hope to own. Nowhere does “free” feature in this equation.
For the maker, there is no question that the irrevocable march of technology is driving distribution cos