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Strategies for a discontinuous future.












Sunday, November 09, 2003
 


Here's an interesting article about the DRM system that the Broadcast Flag scheme is going to use - 5C. 5C is backed by all the usual suspects, and it's apparently even more locked down than we all thought. So the conclusion the author is don't buy a DTV, or help the hackers, etc.

I think that competitors will make Flagless systems (what would you do if you were a small, up-and-coming Chinese firm). Thse Net will enable a massive gray market for these systems. They'll be more expensive than protected systems - because consumers derive more value from them. This difference in price is the value of the property right - which the gray market lets smart players arbitrage. In other words, smart firms will exploit the Broadcast Flag - not buy into it.

-- umair // 7:04 PM //


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