April 25, 2011

Next Era of Content Licensing

Hi Friends,

I still remember the time when I paid around Rs. 12000 ($ 299 ) for getting one XP license for my PC. I also paid around $500 for other software like adobe photoshop and office. I was more than happy to use the licensed software which was handy and usable. But later the sad part was it was based on the number of installations which are done by that particular key.

I used to wonder, why they are tagging software to the machine in which it is installed. I have got rights of the software, I have purchased it then why am I deprived of using the software on multiple machines.

I think that Apple might also have thought on my lines... By the way not on my lines exactly (trying to be modest).. but on the customer sentiment and their marketing strategy. They decided to find the way around this problem. They did this before also while launching App Store where they started selling single song to the users. Users were more than happy to pay price for their favorite songs among lacks of songs.

Now this time apple is back with new thing.

Apple changes the fundamental way of software license by launching the app store for Mac.

Features of this process:
There is totally different approach to this solution where a software is not tagged to a machine but to the user.  Here a user downloads the software and he is given the liberty to download the software again on any other new mac. This makes it simpler for the user to utilize his rights of software purchase and use it to the maximum potential. Now this has lot of impact on the mindset of the customers. This give them chance to utilize the software even after the system is formatted.

There are no limitation for the machine tagging. User can also transfer rights of the particular software to some other computer. They have actually given the power of software usage to the customer itself without any limitation.

Impact on the Gray Market:

This move from apple will support a lot to the general market who want to use pirated software. They will be happily using the software on the machine which they want. They will not be inspired to use the software without updates rather than the software which can be controlled by then. Software which gives them the pride of ownership.

Hopefully, this strategy will help Microsoft to learn something from Apple.

Hardik Upadhyay