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Mike, you're a PERFECT candidate for the Matrix...

Mike,

You seem to be in substantial agreement with my POV. Buy the stuff that has long-term meaning and value to you. Expense everything else.

One point you're not quite getting. We are quickly moving (or being moved) from having to personally purchase, install and maintain the infrastructure needed to deploy digital services to a model where these things are "given" to us. The infrastructure costs are recovered by all of us paying a small continuing "upgrade" fee to the service providers.

Examples abound. Internet access via cable modem - cable already in place, modems effectively "free", monthly access charge. HDTV - effectively "free" cable STB or DBS dishes upgraded for "free" financed by higher monthly service charges. I expect all advanced services to adopt this deployment model as time goes on.

The important thing is that the conduit is built. Anything that helps to build this digital services conduit is good. At the moment, the major impediment to this process centers on copy protection. The content producers have delayed infrastructure rollout until they get assurance that what they put into the pipeline will remain their property. I could care less. As long as the pipeline is built.

Let's fast-forward a few years. Analog TV is history. Analog music is history. It's all digital. The pipelines are in and content is flowing. Now stay with me here. Do you consider there is a limit on the "appetite" of 300 million (US only) people for content? Look at all the "narrow-cast" cable channels (the FOOD channel?). Of course there's no limit. So here's this gaping maw demanding an infinite amount and diversity of content with a payment mechanism for that content already established. What's the entry price to become a content producer given the infrastructure to deliver your content and get paid for it is already in place? It's next to nothing.

You're a new musician just starting out - you appear on one of the Emerging Artists channels and do your thing in HDTV and hirez audio. You don't pay to get on the channel - there's 50 of 'em and they need content 24/7 but you don't get paid either unless people click on "download this music". If they do, you get paid and the EANet takes their cut. Movie fan, same deal. Like porn, help yourself. Civil war buff, watch McPherson lecture in real-time.

The point I'm making is that once the infrastructure is in place, the existing barriers to content distribution evaporate and the free market rules content production. This is where we're headed and CP is a very small price to pay.

My take.

Austin




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