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What exactly constitutes "success" for a hi-rez format? (long)

It seems that one in twenty threads on this board (and about one in ten at DVD-Audio) involve a vacuous debate about whether one format or the other is "dead" or succeeding. The debate is vacuous because there is no attempt to define success meaningfully. Let me offer a definition that has some merits and go from there.

As a professor of business strategy at a leading business school, I can tell you that the basic rule of thumb we teach students is that a firm or an industry will endure if the value it creates for consumers exceeds the costs of creating that value (at least until something comes along that has a larger value/cost gap.) For those buyers and sellers involved, the market is a success, as they enjoy part of the value that is created.

Does success mean the same thing as size? Well, more people may be enjoying the value in a larger market, but to those reaping the benefits of the smaller market, it makes little difference. For example, the market for fine dining in Chicago is a success, even if way more money is spent at McDonalds. It would be idiotic to claim otherwise. Now on to hi-rez.

I bought into hi-rez because it gives me the greatest opportunity to enjoy classical music. There are already more good recordings available than I have time to listen to, and the gap between what I will consider buying and what I will end up buying keeps growing. If there enough folks like me out there to enable record labels to make a profit and continue to widen that gap, then the format is sustainable. This appears to be the case. Frankly, I don't care if seven hundred bezillion consumers buy into some other format. The SACD format, big or small, is meeting my needs and the needs of dozens of wonderful record labels. That makes it a success.



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Topic - What exactly constitutes "success" for a hi-rez format? (long) - Bayside Bomber 20:41:32 10/01/04 (36)


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