[Reader-list] The Commercial Cycle (was Re: .Net / Hailstorm Initiative)

[Neeraj Sharma]

Hi,

I would like to reiterate my thought, "Nothing against
MS, but surely a lot against dominance/monopoly." I
don't have any problems if MS tries making money, but
the mere fact that they hold a governing position in
market should be a reason enough to critically analyze
each and every step of theirs. And as we all know, the
problem with being in front is that you don't know if
people are following you or chasing you! Well, in this
case, I guess we all are only observing MS.

The PVR group, in Delhi, is on the verge of taking
over two more movie theatres (with another being in
the pipeline). Nothing wrong in it, they are just
trying to grow. But there are costs associated with
growth, and unfortunately, the moviegoer has to bear
those costs. The cost of tickets has gone up four
folds in 3 years, and 100g popcorn, which costs Rs. 5
outside Sarai, costs Rs. 30 inside PVR-Priya.

PVR people can churn money, through their presently
owned halls, put that money into taking over more
halls. Other halls will have to increase ticket rates
to be able to counter the upsurge, and eventually, the
moviegoer gets caught in a cycle governed by
commercial interests.

Some things are never deprived of interest, for
example electricity. A five fold increase in the rates
of electricity might prompt you to reduce consumption,
but you won't stop using it all together! (neither
would you make it 1/5 of original usage). That's where
the role of market leader becomes decisive, especially
when they hold 90% of the market. After all, they set
trends (well, mostly)!

Neeraj

__________________________________________________
Do You Yahoo!?
Get personalized email addresses from Yahoo! Mail
http://personal.mail.yahoo.com/