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Strategies for a discontinuous future.





Consulting & advisory, research notes, in the press, about bubblegen,
next wednesdays.





Wednesday, November 19, 2003
 


China creates an alternative standard to DVD, called EVD. Why? Because (idiotically) DVD is still a standard which is costly, especially to firms in emerging markets, because producers have to pay licensing fees to the standard owners.

This is a completely rational response, and a good strategic move. I hope that this sends a signal to future standards-setters: standards are only natural monopolies if it's cheaper not to switch to a competing standard. When your standard becomes so expensive that it's ownerships costs outstrip switching costs, you're in trouble.

-- umair // 7:53 AM //


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