[vorbis] Re: OGG portable (iRiver iHP-120)

[Jack Moffitt]

> Think about this.  If they are selling the product to stores for $250 
> cost becomes greater.  It goes from ~1.25% to 2% of the cost.  There is 
> something else though.  How much does it cost to produce?  If it costs 
> them $180 for each unit (development, advertising, production, etc)  
> Then $5 is 7.14.  And that is with conservative numbers.  It could cost 
> much more to sell due to limited quantities.  Many companies only make 
> 5% profits after all expenses are paid so that 2% really turns into 40% 
> change in net profits.

Keep in mind that most hardware companies have negotiated much better
deals than $5 a unit.  I wouldn't doubt if several manufactures got it
for little or nothing.

Also to my knowledge, you can't get an mp3 license these days without
also getting one for MP3Pro.  Basically they give you mp3 for free with
your mp3pro license.  I'm not sure to what effect this applies to deals
that were in place previously.

Bottom line is that it probably isn't free.

I believe that vialicensing.com says that AAC licensing is quite
similar.  But someone can check that if they want.

jack.
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