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From: brian@umbc4.umbc.edu (Brian Cuthie)
Newsgroups: comp.sys.next
Subject: Re: CD-ROM Drives
Message-ID: <1991Jun24.141011.10473@umbc3.umbc.edu>
Date: 24 Jun 91 14:10:11 GMT
References: <1991Jun21.002247.15086@leland.Stanford.EDU> <28651837.1100@deneva.sdd.trw.com>
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In article <28651837.1100@deneva.sdd.trw.com> thomsen@spf.trw.com (Mark R. Thomsen) writes:
><A whole bunch of people write a whole bunch of interesting stuff;
> too much to copy here.>
>
>In which I air my opinions and then offer a solution for us all.
>
>the data for NeXT/Unix. However the important data we wanted
>is easily available on CD ROM.

Agreed, the world *is* using CD-ROM.  Almost anyone who has large amounts
of data to ship is using it.  The only reason the average guy at home 
doesn't have one is because he just doesn't need 600Meg worth of data
on a machine with a 20 meg hard disk.

>
>I really don't think one medium is the answer to distribution
>(considering NeXT and other digit producers). We need a range
>of sizes and capabilities to satisfy big and little, read-only
>and read-write, backup and online, slow-is-OK and nothing-is-
>fast-enough. The fewer the better.

I agree here also.

>
>But consider this. There is nothing that suggests producers
>will have to pay and markup if they support multiple media
>(boxes in the store are marked with the media, order forms
>have media to mark, NeXTconnection and campus sellers can
>tailor, etc.). Why not let us pick from the range of media
>(CD ROM, floptical, floppy) and then order our software
>accordingly?
>
>Indeed, the media costs are a minor fraction of the price we
>pay for software and most databases. I think the discussion
>here might be a little backwards. Let us pick the devices we
>prefer and then we order/buy media (to pop in) from a common
>range. It won't cost much more for producers to go to master,
>reproduction, or manufacturing companies for the different
>media than it would for one media.
>

Well, I had to disagree somewhere...

Actually the cost of media, even floppies, is a *significant* cost in
the manufacturing of comercial software.

Consider that the average $500 program probably sells to the retailer for
about $350.  The distributor pays about $200 to $250 for it, and the total
cost of manufacturing (manuals, labor, media, duplication, etc.) is 
<$50.

If the program ships on 5 floppies, figure that the cost of a duplicated
disk is maybe $1.50.  Then, the $7.50 represented by the media, is 
approximately 15% of the total manufacturing cost.  Obviosuly a dramatic
change in media cost is going to be intolerable.  Certainly an OD at 
a cost of around $175 isn't going to cut it.  Similarly, most DOS 
software companies literally can't stand the idea that they must 
support two types of distribution media.  It's a mess.  You either put
two sets in the box (expensive) or you handle it on a case by case 
basis (more expensive, and it irks your customers).

Now, in case you think the software company that sells a product
(retail) for $500 that costs only $50 to manufacture, is ripping someone off,
you would be suprised. I personally know people with relatively good sized 
companies that publish internationally distributed products (voted #1 by 
some magazines) who are healthy, but not obscenely profitable, on these margins.
It costs real money to operate a software company. Costs add up.  Media costs 
are non-trivial.

>It could work.
>
>Mark R. Thomsen

-brian