Rich1939 wrote:
BUT when we want a software package we expect the company to keep investing money to upgrade it and then supply us with the upgrades forever, free of charge....There ain't no free lunch.
Actually, I respectfully disagree, as do a number of others in this thread. When I buy a software package, I have no expectations of upgrades for no cost - I buy the product as is. I do, however, expect it to work as promised, so if there are bugs, then I expect them to be fixed.
I do agree there ain't no free lunch. The best example is this forum. Yes, there is no monetary payment required to join, but it is not "free" (it does generate revenue from ads). Some of the "costs" are the lack of anything approaching an adequate search function, the time wasted in reading repetitive posts, the time spent trying to distinguish between apparent and actual objectivity, and the aggravation of reading posts from those who are having, shall we say, a bad day (or week, or maybe lifetime...).
I could've used the software that came with my camera, but I CHOSE not to, because, in economic terms, the "opportunity cost" of learning to use it was time I could spend learning a program that came closer to meeting my needs, and paid get something that I wanted.
CHOICE is the critical factor in competitive markets - if you feel, like I did, that I might be locked into something I could not get out of without losing all my work, you won't choose a subscription model. On the other hand, if you know you're going to use the product heavily, no matter what, the subscription model (including "free" upgrades), may be the best choice for you. Same with buying a car, whether leased or purchased outright - you have a choice. Where choice breaks down is what economists call "natural monopolies" (look it up if you're REALLY interested...) - electricity and cable companies currently fall into this category - and governments step in to prevent monopolistic pricing. However, "natural monopolies" don't last forever, as technology and new competitive models emerge (think landline telephones - AT&T - and airlines before deregulation).
My kids don't have cable (I do, I'm an old guy...), and don't need it or want it - they can find all the entertainment they want through other services (and, BTW, the cable companies are scared to death of this). Electricity? Think solar panels on your roof - if the price drops far enough, the electric utilities are going to be SOL.
So, you're right in that there ain't no free lunch.