[Weg Cory]

In Los Angeles, a new variety rock radio station offering listeners everything from Classic Rock to 90’s Rock does not reveal on-air the lineup. Instead, they request you log on to their website and follow the streaming playlist.

Interesting?

The radio station is the main hub of the business platform, or so we would logically assume. But their vigilant push towards their e-based presence is very telling in another way.

Dave has the capital whereas most people do not. Capital is king in business. Starbucks is known for opening up operations near Coffee Beans and losing money with the intention of shutting down the competition. They knock the brands off the streets. They can afford to lose revenue on certain operations. Coffee Bean really can’t (or so I will assume for the sake of this thread). People cry about this on the news every night. The despair of one mom and pop pharmacy shutting down in Kansas for a Wal-Mart which hires 10 times more employees and offers benefits is viewed by the public as the gateway to hell.

It is a simple concept and one that I hope finally takes the inevitable “economist” shape. I open a car wash across the street from a resident car wash. I lower the price and offer a free oil change with every car wash. I break even and still eat every night. The car wash across the street shuts down. I buy the lot; open a laundry mat, etc…One or two others can move into the market and compete, but thousands simply can’t.

The Internet has a flaw in business philosophy and that flaw is continuously exposed and utilized in very self-defeating ways. Nick can have as much money as he likes, he can never prevent me from pillaging one sale a day from him. He can hardly prevent me from undercutting him via unsavory business practices. I have the ability to aspire to make one sale per day. What other medium allows this?

What Dave is doing is removing himself in an isolated fashion from this current, unorthodox business ideology and placing himself in more conventional territory. He is putting himself in the eyes of consumers that can’t completely be accessed by some guy harboring a few domains. TGP’s will not be purchasing this ad space.

Consumers hit Cyberage and Dave presents them with the Adult Internet. They see some trailers and free pictures and then they pay for a member area. That is how the Internet works right? You pay for a product? : )

Otherwise, the consumer hits the Internet, does a search, hits a site filled with $2000 content blowout and may or may not purchase. They could have hit a site with exclusive content not harvesting their emails. Business philosophy flawed.

Dave is just leveling the playing field. It will level itself independently some day. But as with everything, there are no guarantees.

If I want you to listen to my streaming radio station on a daily basis, I need to get you there first. Otherwise, the saturation of an open market will bury me.