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- Programmer's Newsletter - November 1993
-
- Copyright 1993 Public (software) Library
-
-
- 1. The Future of Shareware/Software?
-
- Someone asked on the ASP forum on CompuServe for people's views of the
- future of software distribution. Here was my response:
-
-
- I think that the "new trend" closest on the horizon is the move to CD-ROMs.
- Shareware CDs have been around a long time, but the industry has only recently
- entered the stage where drives are included with many systems and the price of
- adding on a drive is quickly approaching the $150-and-under range. (In fact,
- if you deduct the value of bundled CDs, they are already in that range.)
-
- I expect that within the next couple of years, a basic CD-ROM drive will be
- available for $75 or less.
-
- In response to this trend, my company, Public (software) Library, recently
- began issuing a monthly CD-ROM for under $20 (on a subscription basis) with all
- the new programs received during the last month, which has been running from
- 550 to 700 programs a month.
-
- As subscription volumes increase, prices will drop, and I expect that before
- long, "slapped-together" versions of what we are doing at PsL will be available
- for less than $10. CDs with compilations of "older" (than one month) programs
- are already being marketed by other companies for under $10.
-
- What impact this will have on the shareware market? First of all, I think
- registrations will go up in total as people are no longer spending so much
- money just to get the shareware versions and as people are exposed to programs
- on CD which they might not have seen otherwise.
-
- On the other hand, the registrations for individual authors may go down. Some
- of the largest vendors (in $ sales) have the smallest selection of software.
- Authors fortunate enough to make it into these catalogs have little competition
- for their programs. With CDs, ALL authors get a chance to get their programs to
- the public, so it stands to reason that registrations will be spread over a
- greater number of programs.
-
- Secondly, CD distribution should put a serious crimp in rack vendors, shareware
- "vending machines", etc, along with many shareware diskette vendors. Why should
- people pay $2-$5 per disk for one pd/shareware program when they can get
- hundreds or even thousands of programs for the cost of a few shareware
- diskettes?
-
- Sure, there will continue to be people without CD drives, just as there are
- still a small percentage of users who only have 1 or 2 360k floppy drives and
- no hard disk, but I can't see them keeping any major shareware vendors in a
- thriving condition.
-
- Multimedia is no longer new, but graphics, speech, music, sound effects, etc.,
- all take a lot of disk space. At PsL we see many, many programs now which take
- 3 or 4 diskettes (or more). This trend is only going to get increase. We see
- retail games now which come on 20 or 30 disks. Can such monster games in
- shareware be far behind?
-
- Several years ago, PsL started charging a low, flat fee for multi-disk programs
- ($6.99/set for an average of 4 disks) and for sets ("MegaDisk Sets") of similar
- or related programs, but other major shareware vendors charge $3-$5 for each
- disk in a set. How long will people be willing to pay $12-$20 for the shareware
- version of ONE program like PC-FILE or PC-WRITE when they can get the same
- version of that and hundreds or thousands more programs on a CD for the same
- price or less?
-
- Another technolog which is lurking around the corner and which could have a
- profound effect on shareware is in-home distribution via cable.
-
- I've read that when cable companies have 500+ channel cable connections in
- place, they will be able to download software to users in a flash. You could
- view screen shots, write-ups, etc, on screen, push a button, and get the
- software downloaded to your computer via your cable hookup.
-
- IBM and BlockBuster have developed a system which also produces software
- packages on demand from a central computer and which is expected to reach into
- homes at some point.
-
- I still think that CD-ROM's have a fighting chance against such technology
- because you have thousands of programs in the palm of your hand.
-
- Next subject: "How much more sophisticated can shareware become?" - Infinitely!
- We've both got a long way to go. Speech control of computers is in its infancy.
- The number of programs which try to learn from the user in any significant way
- are virtually nil. How about games which learn from the human opponent?
-
- And once again, this gets us back to the fact that the more sophisticated
- software is, the larger it is.
-
-
- 2. Return the Keyboard, Please
-
- A set of games we reviewed this month had excellent VGA graphics and good
- implementations of original ideas.
-
- However, when the game was over, our reviewers found their keyboard typeomatic
- rates maxed out, requiring them to save and unload everything and reboot to
- get the keyboard back to normal.
-
- If you speed up the keyboard, please put it back the way you found it when you
- are doneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee. (There it goes again!) <g>
-
-
- 3. Software Excitement!, which had a very good, although very small, catalog
- has gone bankrupt. Unfortunately, they were also providing a registration
- service for some authors. (Many of whom are now scrambling to get with PsL.)
-
- People used to think that shareware vendors were raking in the dough at the
- expense of poor programmers who were doing all the work.
-
- As most people realize these days, not only is running a good shareware
- distribution business a lot of work, it is very costly and business failures
- are not rare.
-
- Software Labs was quoted in a trade magazine as saying they expect $20 million
- in sales in 1993. Big riches, right? Well later in the article they also said
- that they will mail 20 million catalogs in 1993.
-
- You can take a guess at what a good sized four-color catalog costs to print
- and to mail and figure how much of those riches really make it to their bottom
- line. (And catalogs are just one part of a vendors total expenses.)
-
- Also, with those kinds of expenses, it only takes a bad quarter or two to put
- a company in the dumpster.
-
- Public Brand was another company that was riding high for a while, even making
- Inc. Magazine's annual list of fast-growing companies in America. But then
- sales dropped and PBS sold out to Ziff-Davis.
-
- Shareware authors who get into the big time are not immune to financial
- disaster either. Two shareware pioneers - Button (PC-File) and Wallace
- (PC-Write) have suffered financial disasters.
-
- And then there's IBM... At PsL, we like to say: "Well, we may not be rich, but
- we made billions more than IBM did last year." <g>
-
- So if you ever get discouraged by what you consider low registrations, you may
- want to look at the bright side.
-