Quote:
Originally Posted by Atticus Grinch
What I think it means is that Apple having libraries of millions of songs and thousands of downloaded movies at a ridiculously low marginal delivery cost, and millions of media players in people's hands, permits it to invest millions of dollars in new proprietary encoding and delivery technologies that would not be affordable to a company that moves less content at a higher marginal cost and lower profit, especially media companies that must encode for a plethora of media players with different formats.
If this is not what the term means, educate me. Difficulty: do it without being a prick.
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Apparently you have the concept. I'm not sure the facts are right though -- I'm not sure marginal costs decline with size. Then again, I would think the biggest marginal cost is bandwidth, which I have never shopped for in that kind of scale.
The rest of actually delivering content online should be very, very low marginal cost at any reasonable scale.
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