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Links 1 through 10 of 76 by Andrew Savikas tagged tocrec

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The iPhone and iPod Touch have become impressive portable media centers. Extending on the functionality of Apple's first media business, iTunes, the iPhone acts as a fully functional iPod, playing music as well as showing movies. Somewhat unexpectedly, the iPhone and the iPod Touch have been heralded as killer gaming devices, suddenly creating formidable competition for both the Sony PSP and Nintendo DSi. However, most surprisingly, we have observed that just behind the largest category, games, eBooks has emerged as a strong second.

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Whether they realize it or not, media companies are in the service business, not the content business. Look at iTunes: if people paid for content, then it would follow that better content would cost more money. But every song costs the same. Why would people pay the same price for goods of (often vastly) different quality? Because they're not paying for the goods they're paying Apple for the service of providing a selection of convenient options easy to pay for and easy to download.

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As a venture capitalist, I’m interested in investing in companies that could be big one day, that could get to at least $50m in revenue.

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When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

When copies are free, you need to sell things which can not be copied.

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what you NEED to do is this - give your music away as high-quality DRM-free MP3s. Collect people's email info in exchange (which means having the infrastructure to do so) and start building your database of potential customers. Then, offer a variety of premium packages for sale and make them limited editions / scarce goods. Base the price and amount available on what you think you can sell. Make the packages special - make them by hand, sign them, make them unique, make them something YOU would want to have as a fan. Make a premium download available that includes high-resolution versions (for sale at a reasonable price) and include the download as something immediately available with any physical purchase. Sell T-shirts. Sell buttons, posters... whatever.

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