It’s back. With the Democrats in Congress and soon perhaps in the Whitehouse and an economy that most think will turn sour soon, it is almost the perfect storm. Trade in services, fondly called “offshoring” is back on the front pages and it bodes ill for global business.
Monthly Archives: March 2007
More IT Services Bashing
Sujai Karampuri in Need Product Companies for India’s Growth makes an unconvincing case for encouraging the high tech industry in India. On the way he quotes data on the IT Services industry to prove his point that
Users in India should have opt-in rights
Last year I posted on “Indian websites haven’t earned my trust“. What had annoyed me enough to write that piece was moneycontrol.com. Once it got hold of my email, it started sending me an email a day with an inane “Sensex was down 89 points, your networth?” Unsubscribing hasn’t worked so far. Eventually, I relegated it to “spam” in my email client where it finds company with all the Viagra and penny stock spam. I wonder what they’ve done with my email though. Probably sold it half a dozen times already, along with those of a thousand other unsuspecting subscribers.
Another Ladoo for my Ladla
This trip, for some reason, I have been noticing a lot more obesity in India. From the just overweight to the can’t-get-out-of-their-airline-seat-themselves obese. Sedentary lifestyles have something to do with this, of course, but I sense that there is another major factor at work here – an Indian mother’s love.
Mumbai Taxis
I am in India on a 2 week trip.
On the ride from the airport to Malad, I get to understand why the Mumbai taxis are the way they are, from my driver. For those of us who have had their bones rattled in a Mumbai taxi, this will tell you why. It won’t hurt less when your head bangs into the roof of the cab, but at least you can nod wisely because you know who to blame.
Open Letter to the Bollywood Music Industry
Dear Mr./Ms. Music Executive,
First of all, let me compliment you on your pricing strategy so far. You have aced the test on how to price information products. Information products like music are tricky – the content is all in digital form, the fixed costs are high and marginal costs approach zero. How do you price such a thing?
Your current strategy seems to be working well. You have segmented the market according to the listeners’ ability to pay. To each segment you offer a different product (or sometimes the same product) at vastly different prices. I checked prices at different places for the same album – Don. Here’s what I found:
Water, No Ice
Indians are known to waiters in restaurants as the “Water, No Ice” people. Most Indians that I know don’t like to order a drink at lunch since the water is free. And no one likes their water with ice cubes in it. Call it racial profiling, if you like, but the Indian position on how they like their water makes sense to me. Given that our ancestral state in the African savannah did not involve any water with ice cubes in restaurants, I suspect that our genes did not prepare us for this daily assault from ice and ice cold water.
On March 1, my wife, Vidya Pradhan and her friend Rohini Mohan started an “online magazine” for Bay Area Indians.
Apple and the Music Industry
Last week’s post on YouTube and Viacom got some great comments. If you get a moment go read them. Ram Medury brings up the case of VAS content providers in India, who get a small fraction of the revenues. The rest is kept by the Indian mobile service provider. Senthil says that it’s about the quality of the content. If the content is compelling it will pull in the dollars. Also, Robert Young at Gigaom has a very thought provoking post on the subject of Google and old media companies.
Onward ho! As promised, this week I take up another interesting space where the “Content vs. Distribution” battle is being played out – digital music.