Re: another one bites the dust.

From: Jim Carlini <carlini_at_nwu.edu>
Date: Wed 29 Aug 2001 10:44:28 -0500

BOB GORDON <bgordon_at_theautochannel.com> WROTE:

>Good News...pretty soon we can all save money by...dusting off
>and reinstalling our 75 mz computers, canceling our expensive
>broadband connectivity and returning to 9600 baud modems, because
>the only thing to do and see on the web will be to check out
>movie schedules, telephone numbers, classifieds and send and
>receive e-mail...

FACT ONE: CORRECT TERMINOLOGY (AND I HOPE ALL OF YOU
READ THIS)

There is NO such thing as 9600 BAUD. It's 9600 bits per
second. This is one of the most common pieces of mis-
information out there that so many pseudo-experts in
this "business" spew out. Think how dumb you look when
you say 9600 BAUD. To anyone (worth anything) in the
networking business, you have just lost ALL of your
credibility. Forget talking about anything more complex
like broadband or fiber optic connectivity, it is clear
you don't know what you're talking about.

And you want more investing????.....

FACT TWO: THE DEMISE OF THE "FREE LUNCH"

No investor who got burned by so many dot.coms and smoky
PowerPoint presentations is going to buy on futures any
more. There were too many "snake oil salesmen" in this
business that overstated projected revenue streams and
understated liabilities. When the BIG payoff never
happened, money went out with the tide that was a huge
reverse Tsunami.

>As a "...we are hanging on by our fingernails", publisher of a
>formerly profitable advertising supported content site, I am
>amazed/frustrated that those companies that will benefit most
>from new and exciting content on the web just don't seem to get
>it....if there is nothing on...why upgrade?

>It would be like the TV networks only showing B and W slides
>and the TV manufactures wondering why HDTV is not selling???

FACT THREE: PRICE IS BIGGEST CRITERIA

Last time I looked HDTV was NOT selling - reason: too high
a price plain and simple. People buy if they see a value -
especially today. Content has to have some value - but I
wouldn't say that that is the ultimate buying criteria.
Turbo Roll-Royce Convertibles are superior to so many cars -
their content is unequal - at $354,000 they should be - so
why aren't you driving one?????

> "Content has always driven the purchase and dissemination of
>new technology and without revenue, independent interactive
>content is going to go Bye Bye...

FACT FOUR: FIRST ADOPTERS BUY FIRST
First adopters drive the purchase of new technology - and
most of those people are laid off. People that would have
bought new gizmos (especially if it could be expensed to
the company) are not buying.

In Japan, wireless Internet is taking off like a rocket.
In this country don't hold your breath - different culture
and again - the "first adopters" aren't going to be buying into
M-Commerce when they can't make the Big M - the Mortgage payments.

>Remember that in the US RCA (NBC), DuMont, Sylvania, and other
>TV manufacturers built an industry as well as their companies
>through advertising and investment and support of TV content.

FACT FIVE: CONSUMER PRODUCTS SUPPORTED EARLY TV

Maybe I'm wrong but I thought consumer products companies
threw in a lot of support? Texaco, Hallmark, Lucky Strike
(and other cigarette companies), Kraft, OVALTINE, GOODnPLENTY,
Autos - Chevrolet, Ford, etc.?

>Unless computer and infrastructure companies see the light and
>support content sites like ours...we will soon hear the industry
>segment say ..."Good Night Gracie".

FACT SIX: THE GOLD RUSH IS OVER - DON'T BLAME THE SUPPLIERS
THAT THE VEIN HAS BEEN DECLARED DEAD

Jim Carlini



Received on Wed Aug 29 2001 - 10:44:28 CDT