I think it's because the lack of tangibility (in any real sense) makes it seem less valuable. I had an experience where I said "pay $7000 for my service with a

I think it's because the lack of tangibility (in any real sense) makes it seem less valuable. I had an experience where I said "pay $7000 for my service with a computer included" or "pay $5000 and byoc" and i've so far had everyone choose the $7000 option. It's just a matter of connection / tangibility. You know what starbucks tastes like, so you're willing to pay. You know what an iPhone feels like, so you can buy it. The software, while awesome, doesn't connect like a physical product you can connect with on multiple senses. My $.02, but I think it's why it's easier to buy a big mac than Rdio.