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Very few people are going to go through the hassle of installing a new client just to make a phone call if a good solution, which both parties have, already exi
by gsmaverick 15y ago
Very few people are going to go through the hassle of installing a new client just to make a phone call if a good solution, which both parties have, already exists.
- JoeAltmaier 15y agoWell, they did that for Skype. And if it comes with the platform, that barrier is gone. But yes, there is market inertia and Skype has it.
- jokermatt999 15y agoMost people I know who use Skype didn't have a video/computer calling solution before Skype. The barrier to installation for a new service that is much lower than switching to a competing service. If they're just getting into that kind of service, the benefits are quite large. Switching to a competing service has much less utility to them, because they already have a solution for the main problem; in this example, calling people. Switching requires losing their old contacts (network effect) as well as learning a new system. To put it in equation: Installing something like skype for the first time: Total utility of program - hassle of installing and learning a new program = large benefit Installing a competitor: Marginal utility of somewhat better program - previously available contacts on old system - hassle of installing and learning a new program = much less benefit