tag:blogger.com,1999:blog-38902647.post7647141080982902187..comments2024-03-26T05:19:42.852-04:00Comments on Professor Michael Roberto's Blog: Apple Video RentalsMichael Robertohttp://www.blogger.com/profile/01658740999927721412noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-38902647.post-74636074590080741102008-01-02T09:24:00.000-05:002008-01-02T09:24:00.000-05:00Thanks for the post, Kevin. I specifically used t...Thanks for the post, Kevin. I specifically used the term "blades and razors" rather than "razors and blades" to describe the fact that they are essentially selling the music (the blades) at low margin to drive sales of the hardware (the razors), which are high margin. This is indeed the opposite of the traditional Gillette razors and blades model. I'm sorry for not explaining my thinking in more detail - I had done that in a previous post, and simply didn't repeat it here for that reason. Again, thanks for reading, and for requesting clarification!Michael Robertohttps://www.blogger.com/profile/01658740999927721412noreply@blogger.comtag:blogger.com,1999:blog-38902647.post-51298127706163492412007-12-29T00:04:00.000-05:002007-12-29T00:04:00.000-05:00Video rentals will certainly drive more AppleTV, i...Video rentals will certainly drive more AppleTV, iPod Touch, iPhone sales, as it is almost certain that both will directly access the iTunes rental store via wifi (just like they do with YouTube and iTunes music (iPod only) today), thus cutting out the computer. <BR/><BR/>And in any imagination, there are forthcoming Apple devices that sit between the iPod Touch and a MacBook laptop, in both screen size and functionality. Those devices would be helped by having video rentals as content.<BR/><BR/>The beauty of Apple's strategy across iPods, iPhones, Macs, AppleTV and iTunes is the leverage each item provides to the others, both for device sales and for getting content providers to sign on.<BR/><BR/>One last thought: your use of razor-and-blades (printers-and-ink, video console-and-games) seems to differ from common understanding. In those cases, the highly profitable item is the blade/ink/game which are sold at high volume, thus allowing the mfr to sell the razor/printer/ console cheaply (possibly at cost or a loss). In Apple's case, the high volume "blade" (song, video, movie rental) is sold just above cost, so that the lower volume "razor" (iPod, AppleTV) can be sold with a high margin. Your post doesn't use either of these formulations.Kevinhttps://www.blogger.com/profile/05365597019511460816noreply@blogger.com