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I think AT&T and telephone business are a bad analogy, exactly because Google kind of is involved in the telephone business and does not apply these stratagems
by mngnt 5y ago
I think AT&T and telephone business are a bad analogy, exactly because Google kind of is involved in the telephone business and does not apply these stratagems there.
For me the point of the article is the strategy Mr. Google uses currently in other fields: They offer you a product for free, a product way better that other (even paid) offerings, to capture the market and to collect data and serve ads inside those products. This doesn´t apply to Android so much, but take Gmail, Google Maps, Search, YouTube. All these services are ostensibly given away for free (like AT&T phones in the article), but have their performance compromised by ads everywhere plus they siphon the user data like a vacuum.
So to paraphrase your criticism: Google doesn´t sell its maps, but pushes the paid listing with larger map icons. Google doesn´t sell its search, but gives adverts when you´d expect the honest best result for your query. Google doesn´t sell the videos (barring the paid offerings), but prepends and interrupts them with ads.
This article just applies these tactics to something we are so familiar with - the phone service.
>>services with near-zero marginal cost
I might be loking at this from the point of view of current, digital, automated and interconnected networks, but the way I see it, a phone network has near-zero marginal costs, too. Once you have built the network, your marginal cost per-call are quite low. I´d say comparable to relaying an email or replying to a search query once the infrastructure is in place.
- saurik 5y ago> I think AT&T and telephone business are a bad analogy, exactly because Google kind of is involved in the telephone business and does not apply these stratagems there. Users didn't come to expect it, and contrary to the Silicon Valley playbook, it turns out that you actually can charge nearly 100% of people and they will pay you: you don't have to give it away for free to have penetration. To me this is more of a hypothetical on "what if a company like Google (specifically the Google of now) invented phones instead of AT&T?".
- Jensson 5y agoYou can charge for a killer feature everyone wants when you have no competitors who can offer it for free. And you might have noticed that even today nobody uses services which puts ads into private communications. People are willing to pay the tiny amount required to skip those ads. And from cable TV we know that every service where people can tolerate ads will contains ads sooner or later even when people pay money for it.