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by thematt 5603 days ago
I see a lot of Web 2.0 applications these days that have their own pieces of foam. It's really all the same code on the backend and theoretically it wouldn't cost them anymore to enable all features completely. They purposely disable features or put their own pieces of "digital" foam in between plans in order to provide different price points for users.
1 comments

The difference is that people generally expect to own the utilitarian physical goods that they pay for. Since information can't be owned in the same sense, it's understood that buying it is going to take the form of some sort of licensing arrangement with more arbitrary conditions.

In reality, the economics of the utilitarian physical goods business may sometimes resemble more those of the information business, but it's up to manufacturers to justify that to their customers.