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[FightThePatent]

Originally posted by Mike AI@Oct 13 2003, 01:41 PM
Mike AI wrote:

Yeah I do not put much credance in conspiracies. It's just the way business gets done. The HUGE video/cable/magazine players are now getting in the net, and they are finally doing it right. We are their competition.... Think about it.

One "defense" of the big players that I heard was that their internet side of operations was such a small part of their operations, that it wasn't a big deal to get a license from Acacia...

In going along the lines of your thinking, they could have seen it as a strategy that might reduce competitors, or have the licenses place a drain on the competitors profit margin, to reduce their effectiveness in competing in the marketplace.

Consolidation, roll-ups, and now patents, are effective tools at limiting competitors.

Acacia is just one patent holder, there are others in the audio/video space, and certainly alot more other kinds of patents out there that could easily come through the Adult Industry and follow in Acacia's footsteps.

The bigger players would be able to absorb these additional license costs, and the smaller players could end up shutting down due to not enough profits.

The end result, a marketplace with a few big companies.... who may then increase their online/internet operations.

Surfers/members may not care that the smaller sites dropped off, if the big players are able to service them with videos, pics, etc..while keeping prices reasonable..

Competition is what brings out new kinds of products/contents, and keeps pricing competitive.. what would happen to the price of monthly memberships if there were fewer companies... economic models would show that price could rise.... and also no need any more for affiliates to drive traffic.


Fight the Patent!