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<h1>002 — Commoditize Your Complement</h1>
<p class="meta">71 min · recorded 2026-08-31</p>
<audio controls preload="metadata" id="player" src="/audio/002.m4a">
<a href="/audio/002.m4a">Download the audio</a>
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<dl class="source">
<dt>Reading</dt>
<dd><a href="https://gwern.net/complement" target="_blank" rel="noopener">Laws of Tech: Commoditize Your Complement</a> <span class="note">(intro)</span></dd>
<dt>By</dt>
<dd>Gwern Branwen, gwern.net</dd>
<dt>Published</dt>
<dd>2018-03-17</dd>
</dl>
<dl class="source">
<dt>Reading</dt>
<dd><a href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/" target="_blank" rel="noopener">Strategy Letter V: The Economics of Open Source</a> <span class="note">(main read)</span></dd>
<dt>By</dt>
<dd>Joel Spolsky, Joel on Software</dd>
<dt>Published</dt>
<dd>2002-06-12</dd>
</dl>
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<p id="t0"><a class="ts" href="#t0">0:00</a><span data-t="0,1860">Hi, and welcome to observations.</span> <span data-t="3300,4620">Today, I want to talk about the</span> <span data-t="4620,6480">oldest trick in the tech industry,</span> <span data-t="6480,8700">and especially in how to make money</span> <span data-t="8700,10740">in the tech industry called</span> <span data-t="10740,12720">commoditizing your complement.</span> <span data-t="13800,16020">And I'm gonna feature two articles,</span> <span data-t="16020,18720">um, one by guern, which is, which I'm</span> <span data-t="18720,20400">just gonna read the intro Vibe because?</span> <span data-t="21360,23040">I mean, it's a one article, so it's</span> <span data-t="23040,26520">like, um, 10K words, but the intro is</span> <span data-t="26520,27660">pretty good, and then I'm gonna jump</span> <span data-t="27660,30300">to the strategy letter number five by</span> <span data-t="30300,32880">Joel and software by Joel spolsky,</span> <span data-t="32880,34440">which he wrote in 2002.</span> </p>
<p id="t35640"><a class="ts" href="#t35640">0:35</a><span data-t="35640,37680">After being at Microsoft and</span> <span data-t="37680,38820">discovering this pattern?</span> <span data-t="41400,43560">Spelling out this pattern in a blog post.</span> <span data-t="45120,47880">Observations is a format I want to</span> <span data-t="47880,51000">create, which is basically me talking</span> <span data-t="51000,53160">to a microphone. I'm just pulling out</span> <span data-t="53160,54900">my recorders. You can probably tell</span> <span data-t="54900,56520">from the audio quality, like my phone</span> <span data-t="56520,57300">recorder right now.</span> </p>
<p id="t57300"><a class="ts" href="#t57300">0:57</a><span data-t="57300,60120">I don't even have a microphone, so if</span> <span data-t="60120,62520">you want, if you have observations</span> <span data-t="62520,63720">and want to share.</span> <span data-t="65220,67380">Just send me a like, open your</span> <span data-t="67380,68880">recorder as well, and send me a voice</span> <span data-t="68880,70260">message, and I might feature you in</span> <span data-t="70260,71880">the next episode. Once I figure out</span> <span data-t="71880,74880">how audio recording works and how to</span> <span data-t="74880,76800">splice and stuff, or it will just</span> <span data-t="76800,77700">cite you.</span> </p>
<p id="t78600"><a class="ts" href="#t78600">1:18</a><span data-t="78600,80280">But yeah, um, maybe you can also</span> <span data-t="80280,82860">reply on Mastodon or wherever?</span> <span data-t="83760,87000">Um, I might have some website in the</span> <span data-t="87000,88560">future right now. It's just a list of</span> <span data-t="88560,89100">episodes.</span> <span data-t="90480,91020">And the audio.</span> <span data-t="91980,93060">Okay, let's jump in.</span> <span data-t="94080,96960">So, ongoing.net complement very nice</span> <span data-t="96960,99960">URL laws of tech. Commoditize your</span> <span data-t="99960,102840">component. Tags AI, economics,</span> <span data-t="102840,104880">economics, Insight, p***, Google.</span> </p>
<blockquote>
<p id="t106680"><a class="ts" href="#t106680">1:46</a><span data-t="106680,108060">A classic pattern in technology</span> <span data-t="108060,110820">economics identified virtual sportsky</span> <span data-t="110820,112560">as layers of the stack attempting to</span> <span data-t="112560,114660">become monopolies while turning other</span> <span data-t="114660,116220">layers into perfectly competitive</span> <span data-t="116220,118140">markets, which are then, which are</span> <span data-t="118140,120180">commoditized in order to harvest more</span> <span data-t="120180,122640">of the consumer surplus discussion</span> <span data-t="122640,123420">and examples.</span> <a class="src" href="https://gwern.net/complement#:~:text=A%20classic%20pattern%20in" target="_blank" rel="noopener" title="Read this in “Laws of Tech: Commoditize Your Complement”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
<p class="attrib">— <a href="https://gwern.net/complement" target="_blank" rel="noopener">Laws of Tech: Commoditize Your Complement, Gwern Branwen</a></p>
</blockquote>
<p id="t124620"><a class="ts" href="#t124620">2:04</a><span data-t="124620,126780">So, especially the example section is</span> <span data-t="126780,128220">going to be interesting, but I think</span> <span data-t="128220,129540">it's gonna be a bit too much for this</span> <span data-t="129540,130200">episode.</span> </p>
<p id="t131640"><a class="ts" href="#t131640">2:11</a><span data-t="131640,134760">This was first published in 2018 and</span> <span data-t="134760,139200">then update in 2022, so I bought a</span> <span data-t="139200,139800">three year period.</span> <span data-t="140940,143100">In which Gwen added more examples and</span> <span data-t="143100,144000">is considered finished by.</span> <span data-t="145980,147720">Um, certainty. Highly likely</span> <span data-t="147720,149640">importance. Five. I think it's like a</span> <span data-t="149640,151260">out of 10 system that they use.</span> <span data-t="152280,152580">Um.</span> </p>
<p id="t155880"><a class="ts" href="#t155880">2:35</a><span data-t="155880,159960">Introduction Joel spolskin 2020 in 2002.</span> <span data-t="161040,162240">For 24 years ago</span> </p>
<blockquote>
<p id="t162240"><a class="ts" href="#t162240">2:42</a><span data-t="162240,162900">identified a major</span> <span data-t="162900,164760">pattern in technology, business, and</span> <span data-t="164760,166380">economics. The pattern of</span> <span data-t="166380,167940">commoditizing your complement?</span> <a class="src" href="https://gwern.net/complement#:~:text=identified%20a%20major%20pattern" target="_blank" rel="noopener" title="Read this in “Laws of Tech: Commoditize Your Complement”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t169020"><a class="ts" href="#t169020">2:49</a><span data-t="169020,171900">So as an interjection, there's like a</span> <span data-t="171900,173520">this word commodity right</span> <span data-t="173520,176760">commoditizes a verb based on the on</span> <span data-t="176760,177360">the known.</span> <span data-t="178440,179460">Commodity and?</span> <span data-t="181380,182940">Observation I made is that the German</span> <span data-t="182940,183900">language doesn't really have?</span> </p>
<p id="t185520"><a class="ts" href="#t185520">3:05</a><span data-t="185520,187140">Um, an equal word.</span> <span data-t="189720,191160">Commonly known, and I don't think</span> <span data-t="191160,194520">there's there's probably commodity or</span> <span data-t="194520,196020">something used in economic circles,</span> <span data-t="196020,198360">but we have different terms that mean.</span> <span data-t="199680,203340">Just a piece of like foundational</span> <span data-t="203340,206220">material, but doesn't mean commodity in.</span> <span data-t="207780,210120">Um, so, so I would say a commodity is</span> <span data-t="210120,210420">something that.</span> <span data-t="212220,214680">There's multiple Alternatives that</span> <span data-t="214680,215880">are about the same price.</span> </p>
<p id="t217200"><a class="ts" href="#t217200">3:37</a><span data-t="217200,218760">And take. They are replaceable. So if</span> <span data-t="218760,220380">you go to the gas station and you,</span> <span data-t="220380,222840">you tank something. And it's gonna be</span> <span data-t="222840,225660">roughly the same fuel every</span> <span data-t="225660,228120">everywhere you go, but the producers</span> <span data-t="228120,229380">of the fuel might be a different</span> <span data-t="229380,232320">company or even the gas stations, a</span> <span data-t="232320,233820">different gas station. But the fuel</span> <span data-t="233820,234960">serves a commodity, right?</span> </p>
<p id="t236340"><a class="ts" href="#t236340">3:56</a><span data-t="236340,237300">Same goes for.</span> <span data-t="238500,239880">You could say the browser is a</span> <span data-t="239880,241860">commodity, right? Firefox, chromium,</span> <span data-t="241860,244200">Safari, they all Implement more or</span> <span data-t="244200,246180">less the same API. You can display</span> <span data-t="246180,248280">all the web pages more or less the</span> <span data-t="248280,250980">same, so the browser itself.</span> <span data-t="253440,255480">It's not really a commodity because</span> <span data-t="255480,257460">there's only three of them, but you</span> <span data-t="257460,258960">get the idea like, right?</span> </p>
<p id="t259980"><a class="ts" href="#t259980">4:19</a><span data-t="259980,260040">Um.</span> <span data-t="261180,263220">Like Windows and buildings like</span> <span data-t="263220,264840">Commodities. There's multiple producers.</span> <span data-t="265980,268140">Um, who fight for the cheapest price</span> <span data-t="268140,271680">or the best value, so the price will also?</span> <span data-t="273720,277500">Go down towards low margins in in a</span> <span data-t="277500,277920">healthy environment.</span> </p>
<p id="t282780"><a class="ts" href="#t282780">4:42</a><span data-t="282780,284820">So, there's no really equivalent word</span> <span data-t="284820,285600">for this in German.</span> <span data-t="286680,288900">There's good, there's vava, which is</span> <span data-t="288900,292500">just generic for trading trading item</span> <span data-t="292500,292860">basically.</span> <span data-t="294420,296400">Um, there's resource resource.</span> <span data-t="297300,298920">But there's nothing like, oh, this</span> <span data-t="298920,299220">thing is like?</span> <span data-t="301020,302940">Commodified doesn't exist, right?</span> <span data-t="303960,305700">Um, yeah, that was an interesting</span> <span data-t="305700,306900">observation I made, and I feel like</span> <span data-t="306900,309360">that also influences how, how Germans</span> <span data-t="309360,309600">think about?</span> </p>
<p id="t310980"><a class="ts" href="#t310980">5:10</a><span data-t="310980,312360">Um, especially, like?</span> <span data-t="313740,314820">Day-To-Day.</span> <span data-t="316050,317310">People who who don't have an</span> <span data-t="317310,319050">economics background to think about?</span> <span data-t="320310,321691">Um, the world.</span> <span data-t="322710,323850">Or rather, they they don't really</span> <span data-t="323850,325890">think about how to commoditize stuff.</span> <span data-t="326850,328230">Not very much.</span> <span data-t="329130,330810">But maybe that's just me being in a</span> <span data-t="330810,331950">bubble. Okay, let's continue.</span> <span data-t="334260,336000">So, the pattern of commoditizing a</span> <span data-t="336000,336300">component.</span> </p>
<p id="t336300"><a class="ts" href="#t336300">5:36</a><span data-t="336300,337980">It's an alternative to Vertical</span> <span data-t="337980,339240">integration, and</span> </p>
<blockquote>
<p id="t339240"><a class="ts" href="#t339240">5:39</a><span data-t="339240,340440">it companies seek to</span> <span data-t="340440,342660">secure a choke point or quasi</span> <span data-t="342660,344760">Monopoly in products composed of many</span> <span data-t="344760,346860">necessary and sufficient layers by</span> <span data-t="346860,349080">dominating one layer before string.</span> <span data-t="349080,350760">So much competition in another layer</span> <span data-t="350760,352860">above or below its layer that no</span> <span data-t="352860,354360">competing monopolus can emerge.</span> <span data-t="354360,356700">Prices are driven down to marginal</span> <span data-t="356700,358140">costs elsewhere in the stack.</span> </p>
<p id="t358140"><a class="ts" href="#t358140">5:58</a><span data-t="358140,359640">Total price drops and increases</span> <span data-t="359640,362040">demand, and the majority of the</span> <span data-t="362040,363840">consumer surplus of the final product.</span> <span data-t="364200,366720">Can be diverted to the quasi-monopolist.</span> <span data-t="367500,369240">No matter how valuable the original</span> <span data-t="369240,371640">may be or how one, how much one could</span> <span data-t="371640,373320">charge for it, it can be more</span> <span data-t="373320,375120">valuable to make it free if it</span> <span data-t="375120,376680">increases profits elsewhere.</span> </p>
<p id="t377880"><a class="ts" href="#t377880">6:17</a><span data-t="377880,379440">A classic sample is the</span> <span data-t="379440,381300">commodification of PC Hardware by the</span> <span data-t="381300,382920">Microsoft OS Monopoly to</span> <a class="src" href="https://gwern.net/complement#:~:text=it%20companies%20seek%20to" target="_blank" rel="noopener" title="Read this in “Laws of Tech: Commoditize Your Complement”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t382920"><a class="ts" href="#t382920">6:22</a><span data-t="382920,383940">judgment of</span> <span data-t="383940,385680">IBM and benefits of Microsoft.</span> <span data-t="388200,388320">Um.</span> </p>
<p id="t391320"><a class="ts" href="#t391320">6:31</a><span data-t="391320,393360">So, I noticed that the intro is a bit.</span> <span data-t="394740,397320">Is a bit unclear. As in, it says,</span> <span data-t="397320,398880">this is an alternative to vertical</span> <span data-t="398880,399360">integration.</span> <span data-t="400530,403050">Semicolon init company scene. So, I</span> <span data-t="403050,404910">think the this whole paragraph was</span> <span data-t="404910,407250">about commoditizing your complement.</span> <span data-t="409110,409290">Um.</span> <span data-t="411330,412590">Whereas vertical integration is.</span> <span data-t="414390,416190">You have control over every part of</span> <span data-t="416190,417630">the stack and thus.</span> </p>
<p id="t418470"><a class="ts" href="#t418470">6:58</a><span data-t="418470,421110">You can decrease margins in every</span> <span data-t="421110,422610">single layer, and then, like what</span> <span data-t="422610,424470">Apple does with with their projects,</span> <span data-t="424470,427350">is they create products that span</span> <span data-t="427350,429870">from they design their own Hardware,</span> <span data-t="429870,431370">they go via the operating system.</span> <span data-t="431370,433650">They create their own devices, and</span> <span data-t="433650,435870">then they sell the whole ecosystem,</span> <span data-t="435870,437250">including the apps and everything.</span> </p>
<p id="t438960"><a class="ts" href="#t438960">7:18</a><span data-t="438960,439620">But I think that's going to be an</span> <span data-t="439620,440040">example about.</span> <span data-t="441600,444540">Apple and the App Store, and like app</span> <span data-t="444540,446220">developers as an example of</span> <span data-t="446220,448080">commoditizing their complement later.</span> <span data-t="450390,453510">Going on. This pattern explains many,</span> </p>
<blockquote>
<p id="t453510"><a class="ts" href="#t453510">7:33</a><span data-t="453510,455490">many, otherwise odd, or apparently</span> <span data-t="455490,458790">self-sabotaging Ventures by locked by</span> <span data-t="458790,460530">large tech companies into apparently</span> <span data-t="460530,463290">irrelevant Fields such, such as the</span> <span data-t="463290,464910">high rate of releasing open source</span> <span data-t="464910,466530">contributions by many internet</span> <span data-t="466530,468570">companies or the intrusion of</span> <span data-t="468570,470610">advertising companies into smartphone</span> <span data-t="470610,472170">manufacturing and web browser</span> <span data-t="472170,474090">development, statistical software,</span> <span data-t="474090,476610">fiber optic networks, Municipal</span> <span data-t="476610,479610">Wi-Fi, radio Spectrum auctions, DNS.</span> </p>
<p id="t480750"><a class="ts" href="#t480750">8:00</a><span data-t="480750,482910">Google. They are preemptive attempts</span> <span data-t="482910,484350">to commodify another company</span> <span data-t="484350,486750">elsewhere in the stack or defenses</span> <span data-t="486750,487650">against it being done to them.</span> </p>
<p id="t491040"><a class="ts" href="#t491040">8:11</a><span data-t="491040,491160">Um.</span> </p>
<p id="t494970"><a class="ts" href="#t494970">8:14</a><span data-t="494970,497370">And then he goes on. X Microsoft</span> <span data-t="497370,500310">product manager George Bosque, 2002</span> <span data-t="500310,502530">strategy letter. 5 the economics of</span> <span data-t="502530,505350">Open Source discusses a patternly saw</span> <span data-t="505350,506610">in technology companies, software,</span> <span data-t="506610,507570">and Microsoft in particular.</span> <span data-t="508950,510390">While he does not cite, it's likely</span> <span data-t="510390,512550">he was influenced by Carl Shapiro and</span> <span data-t="512550,514890">Google economists held variants</span> <span data-t="514890,517350">bestselling 1999 technology economics</span> <span data-t="517350,519870">book information rules, a strategic</span> <span data-t="519870,521670">guide to the network economy, which</span> <span data-t="521670,523590">discusses the idea extensively.</span> </p>
<p id="t525510"><a class="ts" href="#t525510">8:45</a><span data-t="525510,527970">A definition. Make yourself a</span> <span data-t="527970,529470">monopoly by growing the markets</span> <span data-t="529470,529710">around you.</span> <span data-t="530910,531210">I</span> <a class="src" href="https://gwern.net/complement#:~:text=many%2C%20otherwise%20odd%2C%20or" target="_blank" rel="noopener" title="Read this in “Laws of Tech: Commoditize Your Complement”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t531210"><a class="ts" href="#t531210">8:51</a><span data-t="531210,532770">accept the definition and examples</span> <span data-t="532770,535470">below. Emphasis original and mostly</span> <span data-t="535470,536250">most links added.</span> <span data-t="538530,542130">Okay, so I think now is an excerpt</span> <span data-t="542130,544410">for Charles polskis.</span> <span data-t="544950,546450">Articles, so I would say, let's</span> <span data-t="546450,547050">switch over to.</span> <span data-t="549150,549210">Um.</span> <span data-t="550170,552210">To the strategy data and then start.</span> </p>
<p id="t553350"><a class="ts" href="#t553350">9:13</a><span data-t="553350,555390">Thinking about this a little bit. So,</span> <span data-t="555390,558450">June 12, 2002 by Joel sposky,</span> <span data-t="558450,559470">strategy letter number five.</span> <span data-t="560670,562770">Tax CEO Tech</span> <span data-t="562770,562890">news.</span> </p>
<blockquote>
<p id="t563790"><a class="ts" href="#t563790">9:23</a><span data-t="563790,566010">When I was in college, I took two</span> <span data-t="566010,567570">intro-economics courses,</span> <span data-t="567570,570330">macroeconomics, and microeconomics.</span> <span data-t="570330,573810">Macro rule of theories, like low end</span> <span data-t="573810,575670">unemployment, causes inflation that</span> <span data-t="575670,577950">never quite stood up to reality, but</span> <span data-t="577950,580290">the microstaff was both cool and useful.</span> </p>
<p id="t580290"><a class="ts" href="#t580290">9:40</a><span data-t="580290,582690">It was full of interesting Concepts</span> <span data-t="582690,584190">about the relationships between</span> <span data-t="584190,586050">supply and demand that really did</span> <span data-t="586050,588270">work. For example, if you have a</span> <span data-t="588270,590310">competitor who lowers their prices,</span> <span data-t="590310,592290">the demand for your product will go</span> <span data-t="592290,593250">down un.</span> <span data-t="593730,594210">To match them.</span> <span data-t="594930,596850">In today's episodes, I'll show one of</span> <span data-t="596850,599310">those Concepts explains a lot about</span> <span data-t="599310,601470">some familiar computer companies.</span> </p>
<p id="t602610"><a class="ts" href="#t602610">10:02</a><span data-t="602610,605130">I show how along the way I noticed</span> <span data-t="605130,606450">something interesting about open</span> <span data-t="606450,608250">source software, which is this. Most</span> <span data-t="608250,610170">of the companies spending big money</span> <span data-t="610170,612570">to develop open source software are</span> <span data-t="612570,614250">doing it because it's a good business</span> <span data-t="614250,616530">strategy for them, not because they</span> <span data-t="616530,617970">suddenly suddenly stop believing in</span> <span data-t="617970,619470">capitalism and fell in love with</span> <span data-t="619470,620730">freedom as in speech.</span> </p>
<p id="t622230"><a class="ts" href="#t622230">10:22</a><span data-t="622230,624270">Every product in the marketplace has</span> <span data-t="624270,625710">substitutes and complements.</span> <span data-t="626790,628410">A substitute is another product you</span> <span data-t="628410,630390">might buy if the first product is too</span> <span data-t="630390,632730">expensive. Chicken is a substitute</span> <span data-t="632730,634890">for beef if you're a chicken farmer</span> <span data-t="634890,636630">and the price of beef goes up. The</span> <span data-t="636630,638130">people will want more chicken, and</span> <span data-t="638130,639150">you will sell more.</span> </p>
<p id="t640770"><a class="ts" href="#t640770">10:40</a><span data-t="640770,641910">A compliment is a product that</span> <span data-t="641910,643590">usually buy together with another</span> <span data-t="643590,645810">product. Gas and cars are</span> <span data-t="645810,648090">complements. Computer hardware is a</span> <span data-t="648090,649470">classic complement of computer</span> <span data-t="649470,650730">operating operating systems.</span> <span data-t="652050,653970">And babysitters are complement of the</span> <span data-t="653970,654690">night fine restaurants.</span> <span data-t="655770,657030">In a small town when the local</span> <span data-t="657030,659130">five-star restaurant has a two. For</span> <span data-t="659130,660450">one, Valentine stay special.</span> </p>
<p id="t660450"><a class="ts" href="#t660450">11:00</a><span data-t="660450,663150">The local babysitter double their rates.</span> <span data-t="663930,665310">Actually, the nine-year-old get</span> <span data-t="665310,666450">robbed into early service.</span> <span data-t="668940,670920">All else being equal. Demand for a</span> <span data-t="670920,671760">product increases when the</span> <span data-t="671760,672060">price of</span> <span data-t="672060,673560">its complements decrease.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=When%20I%20was%20in" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
<p class="attrib">— <a href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/" target="_blank" rel="noopener">Strategy Letter V: The Economics of Open Source, Joel Spolsky</a></p>
</blockquote>
<p id="t677430"><a class="ts" href="#t677430">11:17</a><span data-t="677430,677550">So?</span> <span data-t="678690,679890">I guess very?</span> <span data-t="680790,682470">Definition of this feature.</span> </p>
<p id="t686700"><a class="ts" href="#t686700">11:26</a><span data-t="686700,688020">A compliment being something that is</span> <span data-t="688020,690720">required for your Pro you to sell</span> <span data-t="690720,691080">your product, right?</span> </p>
<p id="t696420"><a class="ts" href="#t696420">11:36</a><span data-t="696420,697020">So, if you think about?</span> <span data-t="698340,700620">If you're a programmer and?</span> </p>
<p id="t705240"><a class="ts" href="#t705240">11:45</a><span data-t="705240,706440">A new program you want to program</span> <span data-t="706440,706680">something?</span> <span data-t="708180,709860">Maybe your compliments are the</span> <span data-t="709860,711600">libraries you use or the operating</span> <span data-t="711600,712620">systems you are running on?</span> <span data-t="713880,714900">Or, if you are?</span> <span data-t="717270,718710">Building a website like Google does</span> <span data-t="718710,721290">our search engine, then the</span> <span data-t="721290,722550">complement is probably the thing that</span> <span data-t="722550,724230">is going to display your website and.</span> </p>
<p id="t725670"><a class="ts" href="#t725670">12:05</a><span data-t="725670,728130">Um, the internet providers that are</span> <span data-t="728130,729690">gonna transfer your website to the</span> <span data-t="729690,729990">customer.</span> </p>
<p id="t733830"><a class="ts" href="#t733830">12:13</a><span data-t="733830,737730">And if you're in the ad business and you?</span> <span data-t="739110,740130">You notice that there's going to be a</span> <span data-t="740130,742170">lot more videos uploaded to the</span> <span data-t="742170,745230">internet, and you really, really feel</span> <span data-t="745230,747090">like there's going to be a big slice</span> <span data-t="747090,749550">of the internet. It's just being videos.</span> <span data-t="750750,752370">People consuming video material.</span> <span data-t="752370,753570">Instead of reading blog posts like,</span> <span data-t="753570,754170">we are right now.</span> </p>
<p id="t755130"><a class="ts" href="#t755130">12:35</a><span data-t="755130,756510">Then, you probably want to buy a</span> <span data-t="756510,756811">company that's gonna.</span> <span data-t="758790,759870">Provide the infrastructure for</span> <span data-t="759870,761910">serving video on the internet,</span> <span data-t="761910,763350">because that's your compliment,</span> <span data-t="763350,765450">right. You want to serve advertising</span> <span data-t="765450,767370">on videos, so you need to be inside</span> <span data-t="767370,770550">of the video delivery process.</span> </p>
<p id="t777930"><a class="ts" href="#t777930">12:57</a><span data-t="777930,779910">Or maybe, if you, if you're</span> <span data-t="779910,781170">advertising business, you go as far</span> <span data-t="781170,783510">as saying, oh. But Broadband internet</span> <span data-t="783510,784830">is important for people to use.</span> <span data-t="786210,789270">And if other providers are starting</span> <span data-t="789270,792330">to, like, then you complement is</span> <span data-t="792330,793230">gonna be either.</span> <span data-t="795390,795510">Um.</span> <span data-t="796410,799290">Laws that make delivering content like?</span> <span data-t="801240,803880">Being specific and who you allowed</span> <span data-t="803880,805620">conductibility to be levered by,</span> <span data-t="805620,807300">like, net materiality.</span> </p>
<p id="t808080"><a class="ts" href="#t808080">13:28</a><span data-t="808080,808980">Very important for you because?</span> <span data-t="810630,810750">Um.</span> <span data-t="811590,813750">That's your your lifeline. Like, if</span> <span data-t="813750,816150">you are Google or Facebook and net</span> <span data-t="816150,817350">neutrology doesn't exist, and</span> <span data-t="817350,820230">suddenly, maybe some other competitor</span> <span data-t="820230,821670">can come into.</span> <span data-t="822870,824670">Um, can, like, buy up.</span> <span data-t="825570,826710">The domain provider.</span> <span data-t="828240,828360">Um.</span> <span data-t="829920,832260">And say, huh? If you serve my, if you</span> <span data-t="832260,834720">prefer my packets over Google's</span> <span data-t="834720,836580">packets, then I'm gonna pay you directly.</span> </p>
<p id="t838020"><a class="ts" href="#t838020">13:58</a><span data-t="838020,839700">And suddenly the market for</span> <span data-t="839700,840420">advertising is.</span> <span data-t="841440,844140">Is under attack.</span> <span data-t="845100,845880">So, like, basically.</span> <span data-t="848160,848760">And there's like a.</span> </p>
<p id="t852180"><a class="ts" href="#t852180">14:12</a><span data-t="852180,853680">Like, somebody can drive a wedge</span> <span data-t="853680,856020">between what you're selling and who</span> <span data-t="856020,857400">you're selling to and how you're</span> <span data-t="857400,858000">selling it, right?</span> <span data-t="859140,861120">That's like the the downstream side</span> <span data-t="861120,862260">of things. And then there's the</span> <span data-t="862260,864360">Upstream side of things. Like, what</span> <span data-t="864360,866760">are you? What do you require to even</span> <span data-t="866760,868320">build your product in the first place?</span> </p>
<p id="t875010"><a class="ts" href="#t875010">14:35</a><span data-t="875010,875850">So, there's gonna be a lot of</span> <span data-t="875850,877170">examples later.</span> <span data-t="879690,880830">But I think it's very important,</span> <span data-t="880830,882930">especially for software development</span> <span data-t="882930,884670">developers to think about economic</span> <span data-t="884670,888810">reasons for things like browsers</span> <span data-t="888810,890190">being open sourced or.</span> <span data-t="891630,895290">Um, steam valve going into Linux as.</span> <span data-t="896550,898170">Their operating system, as opposed to</span> <span data-t="898170,899310">Microsoft Windows.</span> <span data-t="900330,900690">Um.</span> <span data-t="901950,904890">Or also, like why social media sites?</span> </p>
<p id="t906000"><a class="ts" href="#t906000">15:06</a><span data-t="906000,908580">Two things they do, why they do</span> <span data-t="908580,909540">things the way they do them.</span> <span data-t="910800,911040">Um.</span> <span data-t="912360,914100">And why Microsoft will suddenly</span> <span data-t="914100,916800">publish lots of Open Source, but</span> <span data-t="916800,918600">like, even by companies that they</span> <span data-t="918600,920040">just open source afterwards, right.</span> <span data-t="920040,922200">Like, GitHub is probably something</span> <span data-t="922200,924000">related to that which I haven't</span> <span data-t="924000,924420">really thought.</span> <span data-t="925920,926160">About.</span> <span data-t="927300,927660">Um.</span> </p>
<p id="t929670"><a class="ts" href="#t929670">15:29</a><span data-t="929670,930390">Maybe it's a different thing actually?</span> </p>
<p id="t933780"><a class="ts" href="#t933780">15:33</a><span data-t="933780,934800">Okay, let's go on.</span> <span data-t="936600,937980">All else being equal. Demand for</span> <span data-t="937980,939420">product increases when the price</span> </p>
<blockquote>
<p id="t939420"><a class="ts" href="#t939420">15:39</a><span data-t="939420,939660">of</span> <span data-t="939660,940860">its complements decrease.</span> <span data-t="941940,943140">Let me repeat that because you might</span> <span data-t="943140,944640">have dosed off and it's important</span> <span data-t="944640,947580">demand for a product increases when</span> <span data-t="947580,949440">the price of its complements</span> <span data-t="949440,953100">decrease. For example, if flights to</span> <span data-t="953100,955200">Miami become cheaper demand for hotel</span> <span data-t="955200,957600">rooms in Miami goes up because more</span> <span data-t="957600,960060">people are flying to Miami and need a</span> <span data-t="960060,960120">room.</span> </p>
<p id="t961080"><a class="ts" href="#t961080">16:01</a><span data-t="961080,962940">When computers become cheaper, more</span> <span data-t="962940,965100">people buy them, and they all need</span> <span data-t="965100,966720">operating systems. So, demand for</span> <span data-t="966720,968580">operating system goes up, which means</span> <span data-t="968580,970260">the price of operating</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=of%20its%20complements%20decrease." target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t970260"><a class="ts" href="#t970260">16:10</a><span data-t="970260,971040">system can go up.</span> <span data-t="973560,974820">So, but what if somebody comes along</span> <span data-t="974820,977160">and says, ha? Demand for mobile</span> <span data-t="977160,978720">phones is gonna increase, right?</span> <span data-t="978720,981120">Because everybody's gonna want to</span> <span data-t="981120,982260">have a mobile phone like an iPhone?</span> </p>
<p id="t983520"><a class="ts" href="#t983520">16:23</a><span data-t="983520,985260">Um, but Apple has got all the best</span> <span data-t="985260,986760">mobile phones. So, everybody's buying</span> <span data-t="986760,988020">into Apple's close ecosystem?</span> <span data-t="989340,991740">And also, if we if suddenly somebody</span> <span data-t="991740,993180">starts building mobile phones and</span> <span data-t="993180,994560">somebody else comes up with an</span> <span data-t="994560,994980">operating system.</span> <span data-t="996600,997920">Then, we won't be able to sell our</span> <span data-t="997920,1000080">advertising on the apps in the</span> <span data-t="1000080,1000620">operating system.</span> </p>
<p id="t1002000"><a class="ts" href="#t1002000">16:42</a><span data-t="1002000,1003380">So, what if we instead?</span> <span data-t="1004520,1005960">Build the middle layer if we start</span> <span data-t="1005960,1007040">building Android and.</span> <span data-t="1008660,1010160">Open source, so there's like no</span> <span data-t="1010160,1011780">market for anybody else to go into</span> <span data-t="1011780,1014060">the into the business of selling</span> <span data-t="1014060,1016160">operating systems for mobile phones,</span> <span data-t="1016160,1018380">and also we can bind all of the</span> <span data-t="1018380,1020840">hardware producers to use Android</span> <span data-t="1020840,1021980">because it's the only.</span> </p>
<p id="t1023240"><a class="ts" href="#t1023240">17:03</a><span data-t="1023240,1025340">Readily available platform that can</span> <span data-t="1025340,1028280">be used, and that also has all of the</span> <span data-t="1028280,1029720">search engine stuff already built</span> <span data-t="1029720,1030440">into it so.</span> <span data-t="1031460,1033500">So you can see how the thinking at</span> <span data-t="1033500,1035360">Google goes if when they, when they</span> <span data-t="1035360,1037160">notice that, oh s***, the mobile</span> <span data-t="1037160,1040160">phones are coming, and how do you,</span> <span data-t="1040160,1041360">how do we react to that, right?</span> </p>
<p id="t1047180"><a class="ts" href="#t1047180">17:27</a><span data-t="1047180,1047360">But also.</span> <span data-t="1049700,1051200">There's this law that everybody is</span> <span data-t="1051200,1052640">talking about right now, which?</span> <span data-t="1053900,1055940">Of course, I forgot already. What?</span> <span data-t="1055940,1056780">What the name was?</span> <span data-t="1057920,1059960">Uh, like it starts with G.</span> <span data-t="1060620,1060980">Um.</span> </p>
<p id="t1064310"><a class="ts" href="#t1064310">17:44</a><span data-t="1064310,1066290">I will, I will. I will remember not</span> <span data-t="1066290,1066710">in a bit.</span> <span data-t="1067430,1068870">Which is basically that there's these</span> <span data-t="1068870,1069110">kind of.</span> <span data-t="1070190,1071031">Unlocks of?</span> <span data-t="1073220,1073340">Um.</span> <span data-t="1074240,1076700">Unlocks of of a price point where</span> <span data-t="1076700,1078440">something becomes cheap enough that</span> <span data-t="1078440,1081080">new cat Loop new kinds of categories</span> <span data-t="1081080,1082040">of usage.</span> <span data-t="1083000,1084260">Um, suddenly become.</span> <span data-t="1085220,1086540">Available rights.</span> <span data-t="1087740,1089660">So, for example, the the internet</span> <span data-t="1089660,1091520">isn't like the the public internet</span> <span data-t="1091520,1092540">wasn't possible before.</span> </p>
<p id="t1092540"><a class="ts" href="#t1092540">18:12</a><span data-t="1092540,1094340">There was a widely distributed.</span> <span data-t="1095780,1095840">Um.</span> <span data-t="1096920,1098660">Phone Network, obviously, because you</span> <span data-t="1098660,1100940">needed modems, and then you needed a</span> <span data-t="1100940,1102920">widely disputed personal computer in</span> <span data-t="1102920,1103640">people's home.</span> <span data-t="1104720,1106040">And then suddenly the internet</span> <span data-t="1106040,1107120">becomes possible outside of</span> <span data-t="1107120,1108500">University servers.</span> <span data-t="1109280,1111320">And that also makes online</span> <span data-t="1111320,1112460">advertising possible and.</span> <span data-t="1113660,1115700">And you know, there's these. These</span> <span data-t="1115700,1117320">unlock unlocked points where</span> <span data-t="1117320,1118760">something becomes cheap enough that</span> <span data-t="1118760,1118940">people.</span> </p>
<p id="t1120020"><a class="ts" href="#t1120020">18:40</a><span data-t="1120020,1122180">Move into it almost and then.</span> <span data-t="1123860,1124341">They can discover new.</span> <span data-t="1125720,1126380">Possibilities.</span> <span data-t="1128420,1130160">Or, for example, Netflix is only possible.</span> <span data-t="1132080,1132140">Um.</span> <span data-t="1133340,1134660">Because of high bandwidth.</span> <span data-t="1135440,1138320">In most developed countries or even</span> <span data-t="1138320,1139460">like 4.</span> <span data-t="1141200,1143300">And Broadband's mobile internet.</span> </p>
<p id="t1146810"><a class="ts" href="#t1146810">19:06</a><span data-t="1146810,1147950">Which is also only possible because?</span> <span data-t="1149990,1150950">You get these.</span> <span data-t="1152990,1154610">Flat per month payments for</span> <span data-t="1154610,1158210">unlimited, mostly unlimited bandwidth</span> <span data-t="1158210,1159470">and not metered by the.</span> <span data-t="1160490,1161570">Microsecond as before.</span> </p>
<p id="t1171620"><a class="ts" href="#t1171620">19:31</a><span data-t="1171620,1171800">So basically.</span> <span data-t="1173180,1174620">If something becomes cheaper, the</span> <span data-t="1174620,1176180">demand goes up. But also, what I'm</span> <span data-t="1176180,1178760">saying is that at certain points, the</span> <span data-t="1178760,1181280">demand goes up more than linearly,</span> <span data-t="1181280,1183560">like. But there's unlock points that</span> <span data-t="1183560,1184160">make things.</span> <span data-t="1185480,1186320">Basically.</span> <span data-t="1187460,1187760">Explode.</span> <span data-t="1188780,1188840">Because.</span> <span data-t="1190760,1191000">For example.</span> </p>
<p id="t1194810"><a class="ts" href="#t1194810">19:54</a><span data-t="1194810,1194930">Um.</span> <span data-t="1196190,1197570">I don't know home fitness trainer.</span> <span data-t="1197570,1199190">Nobody would buy a home fitness</span> <span data-t="1199190,1202130">trainer for 2 and 1/2k, but once a</span> <span data-t="1202130,1204290">home fitness trainer costs under 300,</span> <span data-t="1204290,1206990">suddenly people will start buying them.</span> <span data-t="1208130,1210230">Maybe I don't know, probably not</span> <span data-t="1210230,1211370">because it's kind of stupid.</span> <span data-t="1213410,1213411">Um.</span> </p>
<p id="t1216860"><a class="ts" href="#t1216860">20:16</a><span data-t="1216860,1216980">Uh,</span> </p>
<blockquote>
<p id="t1216980"><a class="ts" href="#t1216980">20:16</a><span data-t="1216980,1217880">at this point, it's pretty common</span> <span data-t="1217880,1219740">for people to try to confuse things</span> <span data-t="1219740,1222440">by saying, aha. But Linux is free.</span> <span data-t="1222440,1225080">Okay, first of all. When an economist</span> <span data-t="1225080,1226940">considers price, they consider the</span> <span data-t="1226940,1228380">total price, including some</span> <span data-t="1228380,1230360">intangible things, like the time it</span> <span data-t="1230360,1232520">takes to set up, re-educate in</span> <span data-t="1232520,1234860">everyone and converting system processes.</span> </p>
<p id="t1234860"><a class="ts" href="#t1234860">20:34</a><span data-t="1234860,1236480">All the things that we like to call</span> <span data-t="1236480,1238580">total cost of ownership.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=at%20this%20point%2C%20it%27s" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t1239360"><a class="ts" href="#t1239360">20:39</a><span data-t="1239360,1241640">Also, often it's a mode around</span> <span data-t="1241640,1243320">existing products like Microsoft</span> <span data-t="1243320,1244880">object office has.</span> <span data-t="1246260,1248120">These modes, like they do something</span> <span data-t="1248120,1249860">that is not like that, is very</span> <span data-t="1249860,1250760">specific to their.</span> <span data-t="1252260,1253940">Um, their own products and.</span> <span data-t="1255440,1257120">Before anybody can migrate to</span> <span data-t="1257120,1257480">something else.</span> </p>
<p id="t1258620"><a class="ts" href="#t1258620">20:58</a><span data-t="1258620,1260060">The other solution has to implement</span> <span data-t="1260060,1262640">basically all of their feature set so</span> <span data-t="1262640,1264320">that all the possible files can be.</span> <span data-t="1265760,1265820">Um.</span> <span data-t="1266960,1268940">Executed by this other software,</span> <span data-t="1268940,1270680">right. Which is why it's so hard for</span> <span data-t="1270680,1272900">people to migrate away from Microsoft</span> <span data-t="1272900,1275540">Excel or to LibreOffice or whatever.</span> <span data-t="1276680,1278361">Um, but then, of course, you get these.</span> </p>
<p id="t1280250"><a class="ts" href="#t1280250">21:20</a><span data-t="1280250,1281810">Good enough solutions, which is like</span> <span data-t="1281810,1285050">for 89%, 98 percent of all the use</span> <span data-t="1285050,1286850">cases. A Google sheet is enough for</span> <span data-t="1286850,1288170">simple.</span> <span data-t="1289430,1291590">Spreadsheets and the extra</span> <span data-t="1291590,1293210">functionality of being able to share,</span> <span data-t="1293210,1296510">like, live. Edit multiple people in</span> <span data-t="1296510,1296870">the same.</span> <span data-t="1298190,1299931">Document means there's.</span> <span data-t="1300950,1302990">Enough of an advantage to using that</span> <span data-t="1302990,1304850">that people will switch away from</span> <span data-t="1304850,1306110">Microsoft Excel.</span> </p>
<p id="t1306890"><a class="ts" href="#t1306890">21:46</a><span data-t="1306890,1306950">And.</span> <span data-t="1308150,1309770">Towards the Google sheet stuff.</span> </p>
<p id="t1313610"><a class="ts" href="#t1313610">21:53</a><span data-t="1313610,1314930">Which also has this interesting</span> <span data-t="1314930,1317750">corollary that just re-implementing</span> <span data-t="1317750,1318710">something s*****?</span> <span data-t="1319730,1322370">As a free, open source software is often.</span> <span data-t="1323360,1324560">A losing battle because?</span> <span data-t="1327020,1328400">Um, the existing companies have the</span> <span data-t="1328400,1330200">money the existing companies have the.</span> <span data-t="1331400,1333020">The advantage of being probably</span> <span data-t="1333020,1334580">earlier in the game, of course. The</span> <span data-t="1334580,1336320">second mover is always a bit easier</span> <span data-t="1336320,1338000">because they can just re-implement</span> <span data-t="1338000,1338120">everything.</span> </p>
<p id="t1339380"><a class="ts" href="#t1339380">22:19</a><span data-t="1339380,1339560">But.</span> <span data-t="1340880,1343400">Um, which is not true when I'm</span> <span data-t="1343400,1344660">talking about LibreOffice, because</span> <span data-t="1344660,1346220">that was OpenOffice, which was before</span> <span data-t="1346220,1346580">that.</span> <span data-t="1348020,1351020">Star office, I think, which is a</span> <span data-t="1351020,1352700">stone all piece of software from the</span> <span data-t="1352700,1354140">early 90s.</span> <span data-t="1355340,1356600">Um, but I mean, you get the idea,</span> <span data-t="1356600,1358460">right? Like, this person can</span> <span data-t="1358460,1359660">Implement something pretty quickly.</span> </p>
<p id="t1361280"><a class="ts" href="#t1361280">22:41</a><span data-t="1361280,1362600">And just copy the features, but then</span> <span data-t="1362600,1365600">it will be very hard to get people to</span> <span data-t="1365600,1368780">move over from the paid for product</span> <span data-t="1368780,1369800">once they're already.</span> <span data-t="1370760,1372740">Are sold on edge.</span> <span data-t="1374990,1376190">Versus if you have some other</span> <span data-t="1376190,1378230">product, which is a bit less than the</span> <span data-t="1378230,1380690">original, but has some super cool</span> <span data-t="1380690,1381170">extra feature.</span> </p>
<p id="t1381170"><a class="ts" href="#t1381170">23:01</a><span data-t="1381170,1382490">Maybe that will be enough to make</span> <span data-t="1382490,1384530">people move over, especially the</span> <span data-t="1384530,1386150">people that are not experts. Like,</span> <span data-t="1386150,1388610">you won't be able to convince</span> <span data-t="1388610,1390890">somebody to move from whim, like</span> <span data-t="1390890,1393230">their favorite editor or IDE to some</span> <span data-t="1393230,1395090">other IDE, unless you give them a</span> <span data-t="1395090,1396950">really good reason why they would move.</span> </p>
<p id="t1398150"><a class="ts" href="#t1398150">23:18</a><span data-t="1398150,1400130">Because they're so settled in their</span> <span data-t="1400130,1402050">own ways, like the women people will</span> <span data-t="1402050,1403370">always have their own motion key</span> <span data-t="1403370,1405770">bindings and and their whim config,</span> <span data-t="1405770,1407450">which they probably already had spend</span> <span data-t="1407450,1408410">a thousand hours configuring.</span> <span data-t="1409670,1410930">And the EMX people are the same.</span> <span data-t="1411950,1411951">So?</span> <span data-t="1413450,1414770">If you want to sell a new product and</span> <span data-t="1414770,1416390">you really like vs code, you really</span> <span data-t="1416390,1417650">have to make sure that it has.</span> </p>
<p id="t1418850"><a class="ts" href="#t1418850">23:38</a><span data-t="1418850,1420890">Unique advantages, like ease of setup</span> <span data-t="1420890,1423050">or total provider integration or</span> <span data-t="1423050,1424250">plug-in ecosystem.</span> <span data-t="1426110,1427790">Trump's these existing?</span> <span data-t="1428990,1430730">Um, solutions.</span> </p>
<p id="t1434630"><a class="ts" href="#t1434630">23:54</a><span data-t="1434630,1435770">Okay, I'm totally.</span> </p>
<p id="t1439190"><a class="ts" href="#t1439190">23:59</a><span data-t="1439190,1440810">Off track here. The article still</span> <span data-t="1440810,1442010">goes on on a little bit.</span> <span data-t="1443750,1445910">So, we were about. Oh, Linux is free,</span> <span data-t="1445910,1447110">but of course, it's not free because</span> <span data-t="1447110,1449750">people work on it. There's intangible</span> <span data-t="1449750,1451370">stuff, like, how long it takes for</span> <span data-t="1451370,1454910">people to migrate from the win32 IPI</span> <span data-t="1454910,1456590">to some unique space API?</span> </p>
<p id="t1456590"><a class="ts" href="#t1456590">24:16</a><span data-t="1456590,1458810">Like, like all of this friction</span> <span data-t="1458810,1461030">points, so, so the total price of</span> <span data-t="1461030,1463430">using Linux, instead of some other</span> <span data-t="1463430,1465590">operating system, is a lot more than?</span> <span data-t="1465590,1467030">Oh, well, it's free.</span> <span data-t="1468170,1470690">Secondly, by using the free S and B</span> </p>
<blockquote>
<p id="t1470690"><a class="ts" href="#t1470690">24:30</a><span data-t="1470690,1472130">argument, these Advocates try to</span> <span data-t="1472130,1473450">believe that they are not subject to</span> <span data-t="1473450,1474830">the rules of Economics because</span> <span data-t="1474830,1476810">they've got a nice, nice zero.</span> </p>
<p id="t1476810"><a class="ts" href="#t1476810">24:36</a><span data-t="1476810,1477950">They can multiply everything by.</span> <span data-t="1477950,1481010">Here's an example when slash dot asks</span> <span data-t="1481010,1483350">Linux developer mosha bar, a few</span> <span data-t="1483350,1484490">children's comments would be</span> <span data-t="1484490,1485870">compatible with existing device</span> <span data-t="1485870,1487910">drivers, he said. They didn't need to</span> <span data-t="1487910,1490430">proprietary software goes at the</span> <span data-t="1490430,1493850">Tariff of U.S dollars 50 to 100 per</span> <span data-t="1493850,1494750">line of debug code.</span> <span data-t="1495710,1497030">Okay, that's the wrong way to read</span> <span data-t="1497030,1500270">that 5200 US dollars line of</span> <span data-t="1500270,1500990">Riverbank code.</span> </p>
<p id="t1500990"><a class="ts" href="#t1500990">25:00</a><span data-t="1500990,1503510">No, such price applies to open source</span> <span data-t="1503510,1505910">software. Moshi goes on to claim</span> <span data-t="1505910,1507470">then. It's okay for every Linux</span> <span data-t="1507470,1508970">kernel revision to make all existing</span> <span data-t="1508970,1511730">drivers obsolete because the cost of</span> <span data-t="1511730,1513410">rewriting all those existing drivers</span> <span data-t="1513410,1514070">is zero.</span> <span data-t="1515090,1517070">This is completely wrong. He's</span> <span data-t="1517070,1518330">basically claiming that spending a</span> <span data-t="1518330,1519590">small amount of programming time,</span> <span data-t="1519590,1521150">making the kernel backwards</span> <span data-t="1521150,1523370">compatible, is equivalent to spending</span> <span data-t="1523370,1524990">a huge amount of programming time,</span> <span data-t="1524990,1527390">rewriting every driver because both</span> <span data-t="1527390,1529610">numbers are multiplied by their cost,</span> <span data-t="1529610,1531770">which he believes to be zero.</span> </p>
<p id="t1532910"><a class="ts" href="#t1532910">25:32</a><span data-t="1532910,1535370">This is a primer for C fallacy.</span> <span data-t="1536090,1537110">The thousands of millions of</span> <span data-t="1537110,1539150">developer hours it takes to revise</span> <span data-t="1539150,1541310">every existing device driver we're</span> <span data-t="1541310,1542810">going to have to come at the expense</span> <span data-t="1542810,1545210">of something, and until that's done,</span> <span data-t="1545210,1546950">Linux will be once again handicapped</span> <span data-t="1546950,1548570">in the marketplace because it doesn't</span> <span data-t="1548570,1550070">support existing Hardware.</span> </p>
<p id="t1551090"><a class="ts" href="#t1551090">25:51</a><span data-t="1551090,1552230">Wouldn't it be better to use all</span> <span data-t="1552230,1555230">those zero cost effort, making gnome</span> <span data-t="1555230,1555410">better</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=argument%2C%20these%20Advocates%20try" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t1555410"><a class="ts" href="#t1555410">25:55</a><span data-t="1555410,1557330">for supporting new hardware?</span> <span data-t="1559190,1559970">This is funny.</span> <span data-t="1560990,1563090">It's very funny because wouldn't it</span> <span data-t="1563090,1565550">be better to use this to make gnome</span> <span data-t="1565550,1565730">better?</span> <span data-t="1568070,1570650">Like, say that in 2002 is, like, oh</span> <span data-t="1570650,1573230">oh, you're such a like.</span> <span data-t="1575330,1577910">Sweet, my sweet summer child.</span> </p>
<p id="t1577910"><a class="ts" href="#t1577910">26:17</a><span data-t="1577910,1578810">Ignore me is exactly the thing that</span> <span data-t="1578810,1580910">you don't want to put as an example</span> <span data-t="1580910,1582950">here because they tend to rewrite all</span> <span data-t="1582950,1584390">of their f****** libraries every.</span> <span data-t="1584390,1586610">Okay, sorry, I'm swearing it like</span> <span data-t="1586610,1587930">there. Just rewrite everything every</span> <span data-t="1587930,1589550">5 years, and everything else breaks</span> <span data-t="1589550,1591290">like this. I think I currently have,</span> <span data-t="1591290,1594530">like gtk 2, 3, and 4 on this system.</span> </p>
<p id="t1596060"><a class="ts" href="#t1596060">26:36</a><span data-t="1596060,1597500">And they all behave differently, and</span> <span data-t="1597500,1600620">like dark mode works on gtk4, but not</span> <span data-t="1600620,1602780">on 5, which means that some</span> <span data-t="1602780,1604700">applications switch to dark mode when</span> <span data-t="1604700,1606500">I switch, but then some don't because</span> <span data-t="1606500,1609080">somebody decided they it's better to</span> <span data-t="1609080,1610760">break backwards. Compatibility to get</span> <span data-t="1610760,1612140">some new fun features.</span> <span data-t="1613700,1616700">Tend to support old software, I guess.</span> </p>
<p id="t1617780"><a class="ts" href="#t1617780">26:57</a><span data-t="1617780,1619580">So, yeah, gnome is the wrong example</span> <span data-t="1619580,1621200">here because they exactly have this.</span> <span data-t="1622460,1625580">They, they don't behave like a homo</span> <span data-t="1625580,1627140">economicals they behave like.</span> <span data-t="1628250,1630170">Some random guy has some ideas and</span> <span data-t="1630170,1632090">more time to implement it than other</span> <span data-t="1632090,1633470">people, and then just doesn't give a</span> <span data-t="1633470,1634310">s*** about everybody else.</span> </p>
<p id="t1640940"><a class="ts" href="#t1640940">27:20</a><span data-t="1640940,1641900">Yeah, of course. This is personal.</span> <span data-t="1642980,1643760">Personal gripes.</span> </p>
<p id="t1647420"><a class="ts" href="#t1647420">27:27</a><span data-t="1647420,1649040">So, yeah, this is basically don't</span> <span data-t="1649040,1650240">break compatibility. If you don't</span> <span data-t="1650240,1652340">have to add any cost?</span> <span data-t="1654260,1655220">Oh well, I guess.</span> <span data-t="1656930,1659210">The actual answer would be don't</span> <span data-t="1659210,1661070">break compatibility until you've done</span> <span data-t="1661070,1663710">the math and figured out how much</span> <span data-t="1663710,1666650">value you're destroying by destroying</span> <span data-t="1666650,1668570">compatibility, which I guess nobody</span> <span data-t="1668570,1670250">does in the open source ecosystem</span> <span data-t="1670250,1672830">because they all think economic</span> <span data-t="1672830,1674810">economics is for stupid people and.</span> </p>
<p id="t1676250"><a class="ts" href="#t1676250">27:56</a><span data-t="1676250,1677150">Anybody with a business degree</span> <span data-t="1677150,1678350">doesn't actually know anything?</span> <span data-t="1680390,1682070">Which is very funny. It's very funny,</span> <span data-t="1682070,1683630">like in a sad way.</span> <span data-t="1684710,1686390">But I guess that's what this is for</span> <span data-t="1686390,1686630">as well.</span> <span data-t="1687710,1688790">Debug</span> </p>
<blockquote>
<p id="t1688790"><a class="ts" href="#t1688790">28:08</a><span data-t="1688790,1690050">code is not free, whether</span> <span data-t="1690050,1691550">proprietary or open source, even if</span> <span data-t="1691550,1693170">you don't pay cash dollars for it.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=code%20is%20not%20free%2C" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t1693170"><a class="ts" href="#t1693170">28:13</a><span data-t="1693170,1695930">This is also important for the AI</span> <span data-t="1695930,1699530">discussion, like, just take an</span> <span data-t="1699530,1700790">economic view on this, and like.</span> </p>
<p id="t1703730"><a class="ts" href="#t1703730">28:23</a><span data-t="1703730,1705230">The backcode is not free. Weather</span> <span data-t="1705230,1706790">propriety or open source or</span> <span data-t="1706790,1708050">operators. I might add</span> </p>
<blockquote>
<p id="t1708050"><a class="ts" href="#t1708050">28:28</a><span data-t="1708050,1708710">even if you</span> <span data-t="1708710,1710990">don't pay cash dollars for it. It has</span> <span data-t="1710990,1713030">opportunity cost, and it has time</span> <span data-t="1713030,1714650">cost. There's</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=even%20if%20you%20don%27t" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t1714650"><a class="ts" href="#t1714650">28:34</a><span data-t="1714650,1715250">a finite amount of</span> <span data-t="1715250,1717470">volunteer programming handling Talent</span> <span data-t="1717470,1719090">available for open source. Okay, so</span> <span data-t="1719090,1720590">this call paragraph.</span> </p>
<p id="t1721610"><a class="ts" href="#t1721610">28:41</a><span data-t="1721610,1722270">Right, this?</span> <span data-t="1723230,1726290">Not outdated, just the whole equation</span> <span data-t="1726290,1727250">changes, right?</span> <span data-t="1729170,1731150">So right now, you get this.</span> <span data-t="1733640,1734900">You get this argument by many people,</span> <span data-t="1734900,1734901">which.</span> <span data-t="1736400,1739160">Oh, we should don't use AI. Your</span> <span data-t="1739160,1740720">software will be some. You will think</span> <span data-t="1740720,1742220">through everything way more.</span> <span data-t="1743420,1744560">Way more strongly, you will.</span> <span data-t="1745880,1748160">Not go down bad paths as much because?</span> </p>
<p id="t1750110"><a class="ts" href="#t1750110">29:10</a><span data-t="1750110,1751790">Um, you will have thought about what</span> <span data-t="1751790,1753110">you want to implement a lot.</span> <span data-t="1754370,1755510">And so I, I can speak from</span> <span data-t="1755510,1756590">experience. That's just not true.</span> <span data-t="1756590,1759650">Like, I spend so much time on stupid</span> <span data-t="1759650,1760490">little projects that.</span> <span data-t="1762110,1764870">That I had to implement a lot of code</span> <span data-t="1764870,1767150">for. And then, after five years</span> <span data-t="1767150,1767630">later, I'm.</span> </p>
<p id="t1768530"><a class="ts" href="#t1768530">29:28</a><span data-t="1768530,1770150">Why did I spend so much time on this?</span> <span data-t="1770150,1771170">I could have done so many other</span> <span data-t="1771170,1772910">things in that time, right? I can</span> <span data-t="1772910,1774530">say, oh, girls. I learned something</span> <span data-t="1774530,1776150">by doing that. Like, I learned this</span> <span data-t="1776150,1777890">program language or this framework or</span> <span data-t="1777890,1778130">whatever.</span> <span data-t="1779210,1781250">But if you think about it, you could</span> <span data-t="1781250,1781850">have, like?</span> </p>
<p id="t1782930"><a class="ts" href="#t1782930">29:42</a><span data-t="1782930,1784130">I could have created a company or</span> <span data-t="1784130,1785030">maybe also have.</span> <span data-t="1786680,1788540">Had other things to learn in the in</span> <span data-t="1788540,1788960">the meantime, right?</span> <span data-t="1791300,1793940">So, so the opportunity cost thing is</span> <span data-t="1793940,1795800">really overlooked. And that's also</span> <span data-t="1795800,1795980">because?</span> <span data-t="1797300,1797720">It's.</span> <span data-t="1799790,1800690">You know, it's personal for most</span> <span data-t="1800690,1802010">people like they spend a lot of time</span> <span data-t="1802010,1802970">on this stuff.</span> </p>
<p id="t1802970"><a class="ts" href="#t1802970">30:02</a><span data-t="1802970,1805610">And when somebody tells them, oh, you</span> <span data-t="1805610,1806630">could have done like five other</span> <span data-t="1806630,1807830">things in the same time, and you</span> <span data-t="1807830,1810230">would have learned like 10x more.</span> <span data-t="1811250,1812450">If you had tried out more things?</span> <span data-t="1813590,1814970">Because you had this machine that</span> <span data-t="1814970,1817130">will just give you the ability to</span> <span data-t="1817130,1817970">experiment a lot faster.</span> <span data-t="1819170,1820910">They would probably be, like, huh,</span> <span data-t="1820910,1821930">why did I waste all this time, right?</span> </p>
<p id="t1823070"><a class="ts" href="#t1823070">30:23</a><span data-t="1823070,1825470">Which is also it's a spiritual thing, but?</span> <span data-t="1826610,1829010">Yeah, just enjoy things as they come</span> <span data-t="1829010,1830090">and don't.</span> </p>
<p id="t1835040"><a class="ts" href="#t1835040">30:35</a><span data-t="1835040,1836180">Don't cry over lost.</span> <span data-t="1838250,1840470">Potential potentiality, but also</span> <span data-t="1840470,1841310">don't be stupid, like.</span> <span data-t="1842630,1844190">Like, unless you really have fun</span> <span data-t="1844190,1847551">writing code by hand, maybe to the?</span> <span data-t="1848750,1849230">Like, maybe?</span> <span data-t="1851390,1854030">Like, do the math and think. Is this</span> <span data-t="1854030,1854390">really worth it?</span> <span data-t="1855980,1857120">And then maybe do something and go.</span> <span data-t="1857120,1858740">Make something from wood or something</span> <span data-t="1858740,1859160">instead.</span> </p>
<p id="t1863300"><a class="ts" href="#t1863300">31:03</a><span data-t="1863300,1864440">Touchgrass.</span> <span data-t="1865820,1867980">Okay, so back, there's a final.</span> <span data-t="1867980,1868340">There's</span> </p>
<blockquote>
<p id="t1868340"><a class="ts" href="#t1868340">31:08</a><span data-t="1868340,1869960">a finite amount of volunteer</span> <span data-t="1869960,1871520">programming Talent available for open</span> <span data-t="1871520,1872960">source work, and each open source</span> <span data-t="1872960,1874280">project competes with every other</span> <span data-t="1874280,1875660">open source project for the same</span> <span data-t="1875660,1878060">limited programming resource, and</span> <span data-t="1878060,1879980">only the sexiest projects really have</span> <span data-t="1879980,1881840">more volunteer developers that they</span> <span data-t="1881840,1882080">can use.</span> </p>
<p id="t1882080"><a class="ts" href="#t1882080">31:22</a><span data-t="1882080,1884480">Summarize I'm not very impressed by</span> <span data-t="1884480,1886580">people who try to prove wild economic</span> <span data-t="1886580,1888560">things about free as and beer</span> <span data-t="1888560,1890060">software because they're just getting</span> <span data-t="1890060,1892040">divided by zeros errors. As far as</span> <span data-t="1892040,1892400">I'm concerned.</span> <span data-t="1893660,1895400">Open source is not exempt from the</span> <span data-t="1895400,1896780">laws of gravity or economics.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=a%20finite%20amount%20of" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t1899090"><a class="ts" href="#t1899090">31:39</a><span data-t="1899090,1900290">That's something I'm realizing more</span> <span data-t="1900290,1900950">and more that, like.</span> </p>
<p id="t1903350"><a class="ts" href="#t1903350">31:43</a><span data-t="1903350,1905630">Things that happen. Like, okay, I</span> <span data-t="1905630,1907070">shouldn't say things so much, like many.</span> </p>
<p id="t1910160"><a class="ts" href="#t1910160">31:50</a><span data-t="1910160,1910760">Observable.</span> <span data-t="1912020,1914000">Symptoms that you can.</span> <span data-t="1916100,1916881">Like Intuit, maybe?</span> <span data-t="1918200,1919281">Actually speak to some.</span> <span data-t="1921260,1923900">Maybe hard to hard to actually.</span> <span data-t="1925340,1925400">Um.</span> <span data-t="1927260,1929840">Put numbers on, but also like, deeper.</span> <span data-t="1931100,1932780">Fundamental things that?</span> <span data-t="1934640,1936860">A laws of nature in a way that is more.</span> <span data-t="1938060,1940640">A lot more vague or.</span> <span data-t="1941660,1944840">Um, cloudy, then nebulous.</span> <span data-t="1946220,1947240">Oh, gravity!</span> <span data-t="1948560,1950480">Towards the Gravity center, the</span> <span data-t="1950480,1952460">center of gravity, right or, like,</span> <span data-t="1952460,1955340">um, these are the formulas for space-time.</span> </p>
<p id="t1956360"><a class="ts" href="#t1956360">32:36</a><span data-t="1956360,1956421">But they're.</span> <span data-t="1958880,1959960">I guess they're economic, right? So,</span> <span data-t="1959960,1962000">so you have these chaotic systems,</span> <span data-t="1962000,1963440">and you want to figure out what the?</span> <span data-t="1964520,1967580">Um, what the trends are? What happens</span> <span data-t="1967580,1970040">if you change these one or two or</span> <span data-t="1970040,1971840">maybe five parameters and maybe?</span> </p>
<p id="t1975350"><a class="ts" href="#t1975350">32:55</a><span data-t="1975350,1977030">Um, get an intuition about how things</span> <span data-t="1977030,1978590">interact with each other.</span> <span data-t="1979910,1981530">And like this. Oh God, that's I think</span> <span data-t="1981530,1983150">it was called courthouse now. No.</span> </p>
<p id="t1990080"><a class="ts" href="#t1990080">33:10</a><span data-t="1990080,1990800">Huh? Maybe not.</span> <span data-t="1993020,1993800">God wins law.</span> </p>
<p id="t2001720"><a class="ts" href="#t2001720">33:21</a><span data-t="2001720,2003280">No, that's the Nazi one.</span> <span data-t="2005500,2007600">Go to Winslaws the Nazi one.</span> </p>
<p id="t2010780"><a class="ts" href="#t2010780">33:30</a><span data-t="2010780,2012460">God has law.</span> <span data-t="2013720,2015220">No, that's the target one.</span> </p>
<p id="t2019720"><a class="ts" href="#t2019720">33:39</a><span data-t="2019720,2020381">That's also very important is.</span> <span data-t="2022420,2022720">Um.</span> <span data-t="2024160,2025480">Whenever something becomes a Target,</span> <span data-t="2025480,2028060">it will be games and can't be used as</span> <span data-t="2028060,2028600">a measure anymore.</span> <span data-t="2029740,2030581">Are we seeing that a lot?</span> <span data-t="2033040,2034120">A Peter Principle.</span> <span data-t="2035320,2037180">Mcnamara fallacy.</span> <span data-t="2039760,2042340">I, I can't. I can't find the law</span> <span data-t="2042340,2043060">right now.</span> </p>
<p id="t2052660"><a class="ts" href="#t2052660">34:12</a><span data-t="2052660,2055960">Words law de Morgan's law? No, those</span> <span data-t="2055960,2057640">are all, not the laws I'm looking for.</span> </p>
<p id="t2065650"><a class="ts" href="#t2065650">34:25</a><span data-t="2065650,2068410">The Germans Paradox. Now, we now we</span> <span data-t="2068410,2069250">are at the right one.</span> </p>
<p id="t2074890"><a class="ts" href="#t2074890">34:34</a><span data-t="2074890,2077230">So, instead of leading to a fall in</span> <span data-t="2077230,2078910">consumption, if you improve</span> <span data-t="2078910,2080830">something, it will lead to a rising</span> <span data-t="2080830,2081190">consumption.</span> <span data-t="2082270,2082390">But I.</span> <span data-t="2083590,2084910">In like?</span> <span data-t="2085990,2086650">Not make that?</span> <span data-t="2087790,2089770">Maybe like a linear, or like, maybe?</span> <span data-t="2091180,2092680">Um, logarithmic curve.</span> <span data-t="2093580,2095380">I would make that into, like a step</span> <span data-t="2095380,2095740">function, right?</span> <span data-t="2097000,2098140">So there exists.</span> </p>
<p id="t2101440"><a class="ts" href="#t2101440">35:01</a><span data-t="2101440,2102940">On the curve of something getting</span> <span data-t="2102940,2105700">cheaper where suddenly adoption</span> <span data-t="2105700,2107740">explodes because a whole new use case</span> <span data-t="2107740,2109960">is being found that wasn't possible</span> <span data-t="2109960,2111700">before and suddenly it's possible.</span> </p>
<p id="t2114820"><a class="ts" href="#t2114820">35:14</a><span data-t="2114820,2117940">Like, for example, roads being paved</span> <span data-t="2117940,2118300">over right.</span> <span data-t="2119560,2120580">Something I learned today is that?</span> <span data-t="2122200,2126220">Bicycles, bicycles, cyclists, were</span> <span data-t="2126220,2128320">the people who first argued for</span> <span data-t="2128320,2129880">Paving overalls because.</span> <span data-t="2132520,2135100">Um, yeah, it's. It's a slog to drive</span> <span data-t="2135100,2136960">a bicycle on unpaved road, so</span> <span data-t="2136960,2138700">basically, this were the ones that</span> <span data-t="2138700,2139300">set. Now, we should.</span> </p>
<p id="t2139300"><a class="ts" href="#t2139300">35:39</a><span data-t="2139300,2140980">We should probably pave all of the</span> <span data-t="2140980,2142120">city Interiors.</span> <span data-t="2143020,2145900">And then, suddenly, bicycle user exploded.</span> <span data-t="2146800,2146801">Which?</span> <span data-t="2148240,2151000">Cars possible, right? And then cars</span> <span data-t="2151000,2152680">replace bicycles mostly, but that was</span> <span data-t="2152680,2152980">a different thing.</span> <span data-t="2155740,2155800">Um.</span> <span data-t="2157600,2159280">Open source is not exempt from the</span> <span data-t="2159280,2160900">laws of gravity or economics</span> <span data-t="2160900,2164080">economics economics. We saw this with</span> <span data-t="2164080,2165580">easel, our stitcher,</span> </p>
<blockquote>
<p id="t2165580"><a class="ts" href="#t2165580">36:05</a><span data-t="2165580,2165880">the company</span> <span data-t="2165880,2167800">formerly known as VA Linux and a lot</span> <span data-t="2167800,2168340">of other attempts.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=the%20company%20formerly%20known" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t2168340"><a class="ts" href="#t2168340">36:08</a><span data-t="2168340,2170560">This is, this is probably a history</span> <span data-t="2170560,2171100">lesson because.</span> <span data-t="2172660,2173860">I mean us digital.</span> <span data-t="2174760,2176680">Tells like I I, I've heard the name,</span> <span data-t="2176680,2178600">but I have no idea what easel is.</span> <span data-t="2179320,2180940">I have no idea what the company</span> <span data-t="2180940,2183100">formulated known as VA Linux.</span> <span data-t="2183820,2185560">This, but I guess the pattern is the</span> <span data-t="2185560,2187420">same something is going on, when,</span> </p>
<blockquote>
<p id="t2187420"><a class="ts" href="#t2187420">36:27</a><span data-t="2187420,2189580">which very few people in the open</span> <span data-t="2189580,2191620">source world really understand a lot</span> <span data-t="2191620,2193660">of very large public companies, which</span> <span data-t="2193660,2195820">with responsibilities to maximize</span> <span data-t="2195820,2198220">shareholder value, are investing a</span> <span data-t="2198220,2199840">lot of money and supporting open</span> <span data-t="2199840,2202360">source software, people paying large</span> <span data-t="2202360,2203740">teams of programmers to work on it.</span> </p>
<p id="t2204820"><a class="ts" href="#t2204820">36:44</a><span data-t="2204820,2206080">And that's what the principle of</span> <span data-t="2206080,2208180">complements explains once again.</span> <span data-t="2208180,2210340">Demand for a product increases when</span> <span data-t="2210340,2212500">the price of its complements decreases.</span> <span data-t="2213580,2214960">In general, the company's strategic</span> <span data-t="2214960,2217120">interest is going to be together the</span> <span data-t="2217120,2218740">price of their compliments as low as</span> <span data-t="2218740,2220840">possible, the lowest theoretically</span> <span data-t="2220840,2222460">sustainable price would be the</span> <span data-t="2222460,2223240">commodity price.</span> </p>
<p id="t2223240"><a class="ts" href="#t2223240">37:03</a><span data-t="2223240,2225520">The price that arises when you have a</span> <span data-t="2225520,2226720">bunch of competitors offering</span> <span data-t="2226720,2228580">indistinguishable Goods. So,</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=which%20very%20few%20people" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t2228580"><a class="ts" href="#t2228580">37:08</a><span data-t="2228580,2229000">that's</span> <span data-t="2229000,2229600">what I was talking about.</span> <span data-t="2231280,2232480">At the very beginning, it's like a</span> <span data-t="2232480,2233560">commodity is a thing.</span> <span data-t="2234760,2237040">That is marginal price very low</span> <span data-t="2237040,2239740">because lots of people are competing</span> <span data-t="2239740,2243100">for selling the most the most of it,</span> <span data-t="2243100,2243340">right.</span> </p>
<p id="t2243340"><a class="ts" href="#t2243340">37:23</a><span data-t="2243340,2245680">And also, it's very exchangeable, so</span> <span data-t="2245680,2248500">if you sell it, somebody else says</span> <span data-t="2248500,2250420">they're gonna try to make a better</span> <span data-t="2250420,2253420">price for it. Create like a better</span> <span data-t="2253420,2256300">supply chain so they can sell at a</span> <span data-t="2256300,2258160">lower price than you. And then you</span> <span data-t="2258160,2258460">have to.</span> <span data-t="2260830,2261070">Try to.</span> <span data-t="2262570,2263350">I'll compute them again.</span> <span data-t="2264250,2265870">Which drives the prices down until</span> <span data-t="2265870,2267490">things are very commoditized.</span> </p>
<p id="t2268270"><a class="ts" href="#t2268270">37:48</a><span data-t="2268270,2270130">So, for example, in Germany, we have</span> <span data-t="2270130,2272770">these Supermarket chains like Lidl</span> <span data-t="2272770,2273310">and Aldi.</span> <span data-t="2274330,2276070">And they're in a bitter fight right</span> <span data-t="2276070,2278590">now. For butter prices of all things?</span> <span data-t="2279850,2281830">Which means they're really, really,</span> <span data-t="2281830,2283870">like the bother prices are really in the.</span> <span data-t="2284950,2285010">Um.</span> <span data-t="2286690,2288131">How do you say that they're like?</span> <span data-t="2289030,2291610">Yeah, you can buy a lot of butter for</span> <span data-t="2291610,2292330">a few Euros.</span> </p>
<p id="t2293050"><a class="ts" href="#t2293050">38:13</a><span data-t="2293050,2293170">Um.</span> <span data-t="2294250,2296350">Which is probably also because they</span> <span data-t="2296350,2297850">cross Finance that from the other</span> <span data-t="2297850,2298270">products, but?</span> <span data-t="2299710,2300370">Basically, I want.</span> <span data-t="2301390,2303490">I don't actually know why they do this.</span> <span data-t="2304510,2305890">Because, for example, in France, you</span> <span data-t="2305890,2307630">have the opposite that you have a few</span> <span data-t="2307630,2310510">giant giant.</span> <span data-t="2311530,2313930">Grocery chains that basically all</span> <span data-t="2313930,2316090">collude to just set the prices at</span> <span data-t="2316090,2316450">very high.</span> </p>
<p id="t2317530"><a class="ts" href="#t2317530">38:37</a><span data-t="2317530,2318730">Best prices so?</span> <span data-t="2320050,2321671">Your butter is gonna cost three $4</span> <span data-t="2321671,2326410">per 500 G instead of 150 as it</span> <span data-t="2326410,2326830">currently costs.</span> <span data-t="2327850,2328330">In Germany.</span> <span data-t="2329230,2330850">Or, for example, another example</span> <span data-t="2330850,2332230">would be the the mobile phone</span> <span data-t="2332230,2333610">providers in France.</span> <span data-t="2334630,2335830">Also colluded to have.</span> <span data-t="2336790,2337870">Very, very s*****.</span> <span data-t="2340270,2344770">Monthly, like gigabytes per like euro</span> <span data-t="2344770,2345310">per gigabyte.</span> </p>
<p id="t2346330"><a class="ts" href="#t2346330">39:06</a><span data-t="2346330,2346510">Um.</span> </p>
<p id="t2350320"><a class="ts" href="#t2350320">39:10</a><span data-t="2350320,2351460">How do you say like their contracts</span> <span data-t="2351460,2352840">were super s***** and then one</span> <span data-t="2352840,2354880">billionaire came along and built this</span> <span data-t="2354880,2356200">call company called free, which?</span> <span data-t="2358450,2360190">B**** outbid, Everybody by, like,</span> <span data-t="2360190,2362830">100%, so it was like 50%.</span> <span data-t="2364090,2365410">Like it was half of what other</span> <span data-t="2365410,2368350">people, what other providers gave you</span> <span data-t="2368350,2369730">for the same money, and then</span> <span data-t="2369730,2370990">everybody else had to start.</span> </p>
<p id="t2373000"><a class="ts" href="#t2373000">39:33</a><span data-t="2373000,2373240">Pulling.</span> <span data-t="2374140,2375820">Like lowering the own prices and</span> <span data-t="2375820,2378520">improving the offerings which started.</span> <span data-t="2379480,2381340">Cycle where everybody outbid the</span> <span data-t="2381340,2382240">other company and?</span> <span data-t="2383770,2384850">And the process went lower and lower,</span> <span data-t="2384850,2386230">and nowadays is basically</span> <span data-t="2386230,2388030">commoditized, like, doesn't really</span> <span data-t="2388030,2389950">matter where you go or the they are.</span> <span data-t="2389950,2391510">They have very low margins for this stuff.</span> </p>
<p id="t2392590"><a class="ts" href="#t2392590">39:52</a><span data-t="2392590,2394090">And you basically pay a nice price</span> <span data-t="2394090,2396070">for mobile phones.</span> <span data-t="2396970,2398170">Mobile phone contracts.</span> <span data-t="2399010,2400930">Which is not the case in Germany at</span> <span data-t="2400930,2402370">all. I think it might have started to</span> <span data-t="2402370,2405610">happen because you.</span> <span data-t="2406810,2409450">Basically forced everybody to allow</span> <span data-t="2409450,2411730">roaming in all of the use, so you can</span> <span data-t="2411730,2413890">just have a contract in another country.</span> </p>
<p id="t2415150"><a class="ts" href="#t2415150">40:15</a><span data-t="2415150,2417490">And use it in Germany as before, as</span> <span data-t="2417490,2419410">if it was a local one, which means</span> <span data-t="2419410,2421690">German providers are suddenly forced</span> <span data-t="2421690,2424390">to actually compete with with each</span> <span data-t="2424390,2425410">other, and like with all of the other</span> <span data-t="2425410,2427870">providers in Europe to a certain point.</span> <span data-t="2429070,2430690">Which is why prices are suddenly.</span> <span data-t="2431650,2433510">Turning into commodity prices, which</span> <span data-t="2433510,2434230">is where you want to go.</span> </p>
<p id="t2434230"><a class="ts" href="#t2434230">40:34</a><span data-t="2434230,2435370">If you are like?</span> <span data-t="2436630,2438790">Near liberal ecosystem, but for some</span> <span data-t="2438790,2440770">reason it doesn't always happen.</span> </p>
<p id="t2445720"><a class="ts" href="#t2445720">40:45</a><span data-t="2445720,2446260">So?</span> <span data-t="2447700,2448900">Smart companies tried</span> </p>
<blockquote>
<p id="t2448900"><a class="ts" href="#t2448900">40:48</a><span data-t="2448900,2449680">to commoditize</span> <span data-t="2449680,2450760">their products complements.</span> <span data-t="2451900,2453580">If you can do this, demand for your</span> <span data-t="2453580,2454480">product will increase, and you will</span> <span data-t="2454480,2456160">be able to charge more and make more.</span> <span data-t="2457420,2459520">When IBM designed a PC architecture,</span> <span data-t="2459520,2461560">they used off-the-shelf Parts instead</span> <span data-t="2461560,2463240">of custom parts, and they carefully</span> <span data-t="2463240,2464800">documented the interface between the</span> <span data-t="2464800,2466660">parts evolutionary.</span> </p>
<p id="t2466660"><a class="ts" href="#t2466660">41:06</a><span data-t="2466660,2469120">IBM PC technical reference manual.</span> <span data-t="2469120,2471820">Why, so that other manufacturers</span> <span data-t="2471820,2473380">could join the party as long as you</span> <span data-t="2473380,2475180">match the interface? You can be used</span> <span data-t="2475180,2478360">in PCS. IBM's goal was to commoditize</span> <span data-t="2478360,2480220">the add-in Market, which is a</span> <span data-t="2480220,2481540">complement of the PC market.</span> <span data-t="2482680,2483880">And they did this quite successfully.</span> <span data-t="2485020,2487000">Within a short time, squillions of</span> <span data-t="2487000,2488260">companies sprang up, offering more</span> <span data-t="2488260,2490420">memory, offering memory cards, hard</span> <span data-t="2490420,2492940">drives, graphics cards, printers, Etc.</span> </p>
<p id="t2492940"><a class="ts" href="#t2492940">41:32</a><span data-t="2492940,2495820">Cheap add-ins meant more demand for PCs.</span> <span data-t="2496720,2498700">When IBM licensed the operating</span> <span data-t="2498700,2500440">system PC dos from Microsoft,</span> <span data-t="2500440,2502360">Microsoft was very careful not to</span> <span data-t="2502360,2504820">sell an exclusive license. They made</span> <span data-t="2504820,2506980">it possible for Microsoft. This made</span> <span data-t="2506980,2508660">it possible for Microsoft to license</span> <span data-t="2508660,2510760">the same thing to compact and the</span> <span data-t="2510760,2512980">other hundreds of oems were legally</span> <span data-t="2512980,2515920">cloned the IBM PC using IBM's own</span> <span data-t="2515920,2516340">documentation.</span> </p>
<p id="t2516340"><a class="ts" href="#t2516340">41:56</a><span data-t="2516340,2519220">Microsoft's goal was to commoditize</span> <span data-t="2519220,2521920">the PC market very soon. The PC</span> <span data-t="2521920,2524500">itself was basically a commodity with</span> <span data-t="2524500,2526000">ever decreasing prices consistent.</span> <span data-t="2526660,2528460">Increase in power and fierce margins</span> <span data-t="2528460,2530020">that make it extremely hard to make a</span> <span data-t="2530020,2532420">profit. The low prices, of course,</span> <span data-t="2532420,2534760">increase the amount increased. Demand</span> <span data-t="2534760,2536980">for PCS meant increased demand for</span> <span data-t="2536980,2538480">their complement and the stores.</span> </p>
<p id="t2539260"><a class="ts" href="#t2539260">42:19</a><span data-t="2539260,2541180">All else being equal. The greater the</span> <span data-t="2541180,2542860">amount for a product, the more money</span> <span data-t="2542860,2543700">it makes for you.</span> <span data-t="2544960,2546520">And that's why Bill Gates can buy</span> <span data-t="2546520,2547540">Sweden, and you can't.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=to%20commoditize%20their%20products" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t2553180"><a class="ts" href="#t2553180">42:33</a><span data-t="2553180,2555760">So, this is also why valve is trying</span> <span data-t="2555760,2556060">to create.</span> <span data-t="2557620,2560020">Headsets and why they create like?</span> <span data-t="2561640,2563440">Based on Linux operating systems.</span> <span data-t="2564640,2565660">And why they release.</span> <span data-t="2567160,2569200">Um, the steam box, which is like,</span> <span data-t="2569200,2571660">basically, just a PC with their Steam</span> <span data-t="2571660,2573100">OS on it. And, like, very nice small</span> <span data-t="2573100,2575500">form factor from form factor.</span> </p>
<p id="t2578440"><a class="ts" href="#t2578440">42:58</a><span data-t="2578440,2579880">Because they make money selling games</span> <span data-t="2579880,2582700">on Steam and like making it so that</span> <span data-t="2582700,2584560">their steam platform is taking 30</span> <span data-t="2584560,2586000">percent of everything that people sell.</span> <span data-t="2588310,2588430">Um.</span> <span data-t="2589540,2590860">So everything that increases the?</span> <span data-t="2593500,2595840">Pc gaming Market basically is a win</span> <span data-t="2595840,2598240">for their for their re.</span> <span data-t="2599200,2600460">And also their profits.</span> <span data-t="2602020,2604120">Um, which is why they sell those</span> <span data-t="2604120,2604900">steam boxes then.</span> </p>
<p id="t2604900"><a class="ts" href="#t2604900">43:24</a><span data-t="2604900,2606640">They don't actually sell them for</span> <span data-t="2606640,2608080">under value. They sell them for</span> <span data-t="2608080,2610300">exactly what they, what it cost them</span> <span data-t="2610300,2611980">to, make them, and also plus like a</span> <span data-t="2611980,2612940">little bit of modern.</span> <span data-t="2613720,2614800">Which is why they are so expensive,</span> <span data-t="2614800,2616061">but also other people are going to</span> <span data-t="2616061,2618040">come around. Other companies are</span> <span data-t="2618040,2620140">gonna start creating their own steam</span> <span data-t="2620140,2620920">boxes, which is already happening,</span> <span data-t="2620920,2623320">and then everybody can just install</span> <span data-t="2623320,2625120">Steamworks on their devices and make</span> <span data-t="2625120,2626080">their own steam box.</span> </p>
<p id="t2626080"><a class="ts" href="#t2626080">43:46</a><span data-t="2626080,2628360">So, this is like really increasing</span> <span data-t="2628360,2630580">the margin of the steam ecosystem</span> <span data-t="2630580,2632740">that the the value of the steam ecosystem.</span> <span data-t="2633880,2635320">And there's like, no real reason for</span> <span data-t="2635320,2638800">people to use any other platform at</span> <span data-t="2638800,2639100">this point.</span> <span data-t="2640960,2642580">But also they don't care if people</span> <span data-t="2642580,2643900">like if it's possible that people</span> <span data-t="2643900,2645040">install like the.</span> </p>
<p id="t2646180"><a class="ts" href="#t2646180">44:06</a><span data-t="2646180,2649720">The EA platform or their the the Gog</span> <span data-t="2649720,2651340">platform on the steam box because</span> <span data-t="2651340,2652600">they know that, like, they have the?</span> <span data-t="2654400,2656080">Vast Network Advantage right now!</span> <span data-t="2657160,2660220">So their share of the pie is gonna</span> <span data-t="2660220,2662680">grow faster than other platforms</span> <span data-t="2662680,2664300">share of the pie and the whole pile</span> <span data-t="2664300,2664720">is gonna grow, right?</span> </p>
<p id="t2664720"><a class="ts" href="#t2664720">44:24</a><span data-t="2664720,2667180">So, as long as the whole pie can grow?</span> <span data-t="2668710,2668830">Um.</span> <span data-t="2670240,2672100">Consistently, and also maybe the</span> <span data-t="2672100,2673480">slice of the pie grows.</span> <span data-t="2674260,2676420">Um, that's a win for them.</span> </p>
<p id="t2681400"><a class="ts" href="#t2681400">44:41</a><span data-t="2681400,2683680">This year, we're in 2002. Remember,</span> <span data-t="2683680,2685000">Microsoft's trying to do it again?</span> <span data-t="2686260,2688420">The new game console, the new game</span> <span data-t="2688420,2690700">console, the Xbox like history</span> <span data-t="2690700,2693160">Rhymes, right valve, is realizing the</span> <span data-t="2693160,2694660">new game console, which is the steam</span> <span data-t="2694660,2698080">box in 2026. In 2002, Microsoft is</span> <span data-t="2698080,2698440">doing it.</span> </p>
<blockquote>
<p id="t2699820"><a class="ts" href="#t2699820">44:59</a><span data-t="2699820,2702700">The Xbox uses commodity PC Hardware</span> <span data-t="2702700,2703780">instead of custom parts.</span> </p>
<p id="t2704800"><a class="ts" href="#t2704800">45:04</a><span data-t="2704800,2705580">The theory.</span> <span data-t="2706660,2708100">Was that the commodity Hardware gets</span> <span data-t="2708100,2709960">cheaper every year, so the Xbox could</span> <span data-t="2709960,2710800">write down the prices?</span> <span data-t="2711880,2713140">Unfortunately, it seems to have</span> <span data-t="2713140,2715780">backfired. Apparently, commodity PC</span> <span data-t="2715780,2717100">Hardware has already been squeezed</span> <span data-t="2717100,2719620">down to commodity prices, and so the</span> <span data-t="2719620,2721720">price of Mac in Xbox isn't declining</span> <span data-t="2721720,2723040">as fast as Microsoft would like.</span> </p>
<p id="t2724300"><a class="ts" href="#t2724300">45:24</a><span data-t="2724300,2725680">The other part of Microsoft's Xbox</span> <span data-t="2725680,2728200">strategy was to use DirectX the</span> <span data-t="2728200,2729580">graphics Library that can be used to</span> <span data-t="2729580,2731260">write code that runs on all kinds of</span> <span data-t="2731260,2732460">video chips.</span> <span data-t="2733420,2735040">The goal here is to make the video</span> <span data-t="2735040,2737320">chip a commodity to lower its price</span> <span data-t="2737320,2740620">so that more games are sold where the</span> <span data-t="2740620,2741280">real profits occur.</span> </p>
<p id="t2742360"><a class="ts" href="#t2742360">45:42</a><span data-t="2742360,2744280">And why don't the video chip vendors</span> <span data-t="2744280,2745720">of the world? Try to commoditize the</span> <span data-t="2745720,2746380">games somehow.</span> <span data-t="2747580,2750100">That's a lot harder. If the game Halo</span> <span data-t="2750100,2751720">is selling like crazy, it doesn't</span> <span data-t="2751720,2754180">really have any substitutes. You're</span> <span data-t="2754180,2755560">not going to go to the movie</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=The%20Xbox%20uses%20commodity" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t2755560"><a class="ts" href="#t2755560">45:55</a><span data-t="2755560,2755860">theater</span> <span data-t="2755860,2758320">to see Star Wars attack on the of the</span> <span data-t="2758320,2761080">Clones, and this, oh man, Star Wars</span> <span data-t="2761080,2762940">attack of the Clones was was current,</span> <span data-t="2762940,2766600">like was current in 2000, that's so crazy.</span> </p>
<p id="t2766600"><a class="ts" href="#t2766600">46:06</a><span data-t="2766600,2767920">You're not going to the movie</span> <span data-t="2767920,2768760">theater, you</span> </p>
<blockquote>
<p id="t2768760"><a class="ts" href="#t2768760">46:08</a><span data-t="2768760,2769720">see, Star Wars attack of</span> <span data-t="2769720,2771280">the Clones and the side. Instead, he</span> <span data-t="2771280,2773380">would be satisfied with a Woody Allen</span> <span data-t="2773380,2775060">movie. They may both be great movies,</span> <span data-t="2775060,2776680">but they're not perfect substitutes.</span> <span data-t="2777520,2779740">Now, who would you rather be a game</span> <span data-t="2779740,2780100">publisher</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=see%2C%20Star%20Wars%20attack" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t2780100"><a class="ts" href="#t2780100">46:20</a><span data-t="2780100,2781480">video chat vendor?</span> </p>
<p id="t2783100"><a class="ts" href="#t2783100">46:23</a><span data-t="2783100,2785200">So, this is something that big</span> <span data-t="2785200,2785620">entertainment.</span> <span data-t="2786760,2788320">Like, in the meantime, big</span> <span data-t="2788320,2789520">entertainment has really tried to</span> <span data-t="2789520,2790540">make this happen.</span> <span data-t="2792730,2795190">Um, like you can, probably at this</span> <span data-t="2795190,2796690">point, replace most Netflix.</span> <span data-t="2798070,2800050">Drama series or whatever series with</span> <span data-t="2800050,2801550">a series from the same kind of.</span> <span data-t="2803440,2805360">Jeong, and you will have a perfectly</span> <span data-t="2805360,2807100">mediocre.</span> </p>
<p id="t2807100"><a class="ts" href="#t2807100">46:47</a><span data-t="2807100,2809920">B******* experience, and I guess most</span> <span data-t="2809920,2811000">people are happy with that.</span> <span data-t="2812320,2813880">Or you can. I mean, you can go to any</span> <span data-t="2813880,2815620">kind of superhero movie and you will</span> <span data-t="2815620,2817300">receive a perfectly Bland.</span> <span data-t="2818260,2820420">Default experience, or you can watch</span> <span data-t="2820420,2824920">any kind of Star Wars series game.</span> <span data-t="2826300,2828340">Lego Star Wars whatever and you will</span> <span data-t="2828340,2828940">also get this kind of.</span> </p>
<p id="t2830320"><a class="ts" href="#t2830320">47:10</a><span data-t="2830320,2832840">Star was feeling from it, so they are</span> <span data-t="2832840,2834040">really trying to make these things</span> <span data-t="2834040,2834940">Commodities.</span> <span data-t="2835960,2837820">And I think, because it's Arch,</span> <span data-t="2837820,2839260">they're gonna it's gonna backfire,</span> <span data-t="2839260,2839860">like they're gonna.</span> <span data-t="2840760,2842560">Yeah, they're still making a lot of</span> <span data-t="2842560,2843160">money from this, but</span> <span data-t="2844420,2845800">People are getting really sick of</span> <span data-t="2845800,2846700">this kind of trying to.</span> </p>
<p id="t2848260"><a class="ts" href="#t2848260">47:28</a><span data-t="2848260,2849041">Commoditize art.</span> <span data-t="2850690,2852910">And especially with AR with AIR. Now</span> <span data-t="2852910,2853390">people are going to be.</span> <span data-t="2855430,2858730">Yeah, super linearly. Be annoyed by</span> <span data-t="2858730,2860050">this, and I think the newer</span> <span data-t="2860050,2861190">generation is already going back to</span> <span data-t="2861190,2862990">trying to find the interesting.</span> <span data-t="2864310,2867010">In this stuff and maybe not spend all</span> <span data-t="2867010,2867670">of that money on.</span> <span data-t="2869590,2872110">Yeah, AAA quadruple A whatever.</span> </p>
<p id="t2876130"><a class="ts" href="#t2876130">47:56</a><span data-t="2876130,2877510">One can hope.</span> <span data-t="2878230,2880270">But yeah, so like some things are not</span> <span data-t="2880270,2881710">easy to commoditize.</span> <span data-t="2882610,2884290">Like big entertainment.</span> <span data-t="2885370,2886811">Complexes are always trying to do</span> <span data-t="2886811,2888670">that, like with rock stars or with</span> <span data-t="2888670,2890890">MTV stars or whatever, but</span> <span data-t="2892390,2894250">Um, the pendulum always swings back</span> <span data-t="2894250,2894910">pretty hard, I think.</span> <span data-t="2896290,2898210">Whereas with the technology, it's a</span> <span data-t="2898210,2898630">lot easier to.</span> </p>
<p id="t2900190"><a class="ts" href="#t2900190">48:20</a><span data-t="2900190,2901810">Create Commodities like?</span> <span data-t="2903250,2906190">Whether company a or Company B</span> <span data-t="2906190,2907750">supplies with your aluminum is</span> <span data-t="2907750,2909130">probably doesn't really matter to you.</span> <span data-t="2910930,2911530">Um.</span> <span data-t="2913030,2914350">And I mean the ultimate Commodities</span> <span data-t="2914350,2915550">energy, right? This electricity,</span> <span data-t="2915550,2916330">which is why?</span> <span data-t="2917530,2919870">Solar Revolution and the EV</span> <span data-t="2919870,2921370">Revolution and the Battery Revolution</span> <span data-t="2921370,2921970">are so important.</span> <span data-t="2923350,2926770">And the the obvious Next Step, but</span> <span data-t="2926770,2928390">it's like, it's not even that.</span> </p>
<p id="t2930160"><a class="ts" href="#t2930160">48:50</a><span data-t="2930160,2931420">It's happening because it's the right</span> <span data-t="2931420,2933580">thing to do in scare quotes, but it's</span> <span data-t="2933580,2935500">and well, because the work liberers</span> <span data-t="2935500,2937420">want you to do it. But it's just</span> <span data-t="2937420,2937720">happening because?</span> <span data-t="2939160,2941500">There's like economic incentives to</span> <span data-t="2941500,2943120">do it, and it's happening despite the</span> <span data-t="2943120,2943720">best efforts of.</span> <span data-t="2945040,2946120">Big oil and stuff.</span> <span data-t="2948040,2949060">Try to avoid this.</span> </p>
<p id="t2952450"><a class="ts" href="#t2952450">49:12</a><span data-t="2952450,2953470">Which is also why Trump?</span> <span data-t="2954250,2957130">Mr Donald Trump first mentioned EPE</span> <span data-t="2957130,2957431">is the.</span> <span data-t="2958570,2958990">Accidentally.</span> <span data-t="2960310,2963550">Um, help climate change by invading Iran.</span> </p>
<p id="t2966790"><a class="ts" href="#t2966790">49:26</a><span data-t="2966790,2967810">Which is kind of funny if you think</span> <span data-t="2967810,2970630">about it, but she's probably like his</span> <span data-t="2970630,2970990">best.</span> <span data-t="2972430,2972730">Um.</span> <span data-t="2973750,2975970">Yeah, this Invasion was probably the</span> <span data-t="2975970,2977410">best thing to happen to the globe,</span> <span data-t="2977410,2980230">and it's probably more important than</span> <span data-t="2980230,2981370">many other presidents.</span> <span data-t="2982390,2984970">In a positive way, even although he's</span> <span data-t="2984970,2986470">obviously a b******* president, but?</span> </p>
<p id="t2987370"><a class="ts" href="#t2987370">49:47</a><span data-t="2987370,2988570">This probably helps.</span> <span data-t="2989530,2990970">More than people realize.</span> </p>
<p id="t2996340"><a class="ts" href="#t2996340">49:56</a><span data-t="2996340,2996520">Yep.</span> </p>
<p id="t2999910"><a class="ts" href="#t2999910">49:59</a><span data-t="2999910,3002010">In it by by complete accident, of course.</span> <span data-t="3004710,3004711">Okay,</span> </p>
<blockquote>
<p id="t3004711"><a class="ts" href="#t3004711">50:04</a><span data-t="3004711,3006870">headline IBM spends Millions to</span> <span data-t="3006870,3009330">develop open source software myth.</span> <span data-t="3009330,3011310">They're doing this because Lou</span> <span data-t="3011310,3013650">justner, read the new Manifesto and</span> <span data-t="3013650,3014670">decided he doesn't actually like</span> <span data-t="3014670,3017130">capitalism reality. They're doing</span> <span data-t="3017130,3019170">this because IBM is becoming I.T</span> <span data-t="3019170,3021930">Consulting. Company ID Consulting is</span> <span data-t="3021930,3023610">a complement of Enterprise software.</span> <span data-t="3023610,3026490">Thus, IBM needs to commoditize</span> <span data-t="3026490,3027870">Enterprise software and the best way</span> <span data-t="3027870,3029550">to do this is by supporting open</span> <span data-t="3029550,3031170">source lo and behold.</span> </p>
<p id="t3031170"><a class="ts" href="#t3031170">50:31</a><span data-t="3031170,3032910">Their Consulting division is winning</span> <span data-t="3032910,3033810">back with a strategy.</span> <span data-t="3034980,3037440">Headline Netscape open sources their</span> <span data-t="3037440,3039960">web browser. Oh, this is ancient</span> <span data-t="3039960,3041760">history myth. They're doing this to</span> <span data-t="3041760,3043380">get free source code contributions</span> <span data-t="3043380,3045480">from people in cyber cafes in New</span> <span data-t="3045480,3047400">Zealand reality. They're doing this</span> <span data-t="3047400,3048720">to commoditize the web browser.</span> <span data-t="3049860,3051720">This has been Netscape strategy from</span> <span data-t="3051720,3052260">day one.</span> </p>
<p id="t3052260"><a class="ts" href="#t3052260">50:52</a><span data-t="3052260,3053940">Have a look at the very first</span> <span data-t="3053940,3055380">Netscape press release.</span> <span data-t="3056400,3058740">The browser's freeware Netscape gave</span> <span data-t="3058740,3060060">gave away the browser so they could</span> <span data-t="3060060,3062880">make money on servers. Browsers and</span> <span data-t="3062880,3064620">servers are classic, complements the</span> <span data-t="3064620,3065460">cheaper</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=headline%20IBM%20spends%20Millions" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3065460"><a class="ts" href="#t3065460">51:05</a><span data-t="3065460,3066900">to actually browsers and</span> <span data-t="3066900,3068880">Advers are complements, but I mean</span> <span data-t="3068880,3070860">guess back then, people thought that</span> <span data-t="3070860,3072120">browsing server was a compliment,</span> <span data-t="3072120,3073860">which didn't really work out.</span> </p>
<p id="t3073860"><a class="ts" href="#t3073860">51:13</a><span data-t="3073860,3076260">Which is, I guess why Google won out?</span> <span data-t="3077220,3079140">Because they realized around the same</span> <span data-t="3079140,3079320">time that.</span> <span data-t="3080520,3082620">A search engine can make a lot more money.</span> </p>
<blockquote>
<p id="t3084900"><a class="ts" href="#t3084900">51:24</a><span data-t="3084900,3085200">The cheaper</span> <span data-t="3085200,3086160">the browsers, the more</span> <span data-t="3086160,3087840">servers you sell. This was never as</span> <span data-t="3087840,3089520">true as it was October 1994.</span> <span data-t="3091440,3092880">Netscape was actually surprised when</span> <span data-t="3092880,3094980">MCI came to the door and dumped so</span> <span data-t="3094980,3096360">much money in their Labs that they</span> <span data-t="3096360,3098040">realized they could make money off</span> <span data-t="3098040,3100440">the browser too off of the browser too.</span> </p>
<p id="t3100440"><a class="ts" href="#t3100440">51:40</a><span data-t="3100440,3102660">This wasn't required by the business plan.</span> <span data-t="3103860,3106020">When Netscape released Mozilla as</span> <span data-t="3106020,3107700">open source, it was because they saw</span> <span data-t="3107700,3109380">an opportunity to lower the cost of</span> <span data-t="3109380,3111660">developing the browser so they could</span> <span data-t="3111660,3114000">get the commodity benefit benefits as</span> <span data-t="3114000,3114720">a lower cost.</span> </p>
<p id="t3118830"><a class="ts" href="#t3118830">51:58</a><span data-t="3118830,3120690">Later, AOL Time Warner acquired</span> <span data-t="3120690,3122550">Netscape, the server software, which</span> <span data-t="3122550,3124290">was supposed to be the beneficiary of</span> <span data-t="3124290,3126150">commodity. Browsers wasn't doing all</span> <span data-t="3126150,3129390">that well and was jettisoned now. Why</span> <span data-t="3129390,3131190">would AOL Time Warner continue to</span> <span data-t="3131190,3132930">invest anything in open source?</span> <span data-t="3134070,3135690">It's an entertaining entertainment</span> <span data-t="3135690,3138330">company entertainment companies, so I</span> <span data-t="3138330,3140490">was talking about them are the</span> <span data-t="3140490,3141990">complement of entertainment delivery</span> <span data-t="3141990,3144090">platforms of all types, including web</span> <span data-t="3144090,3144450">browsers.</span> </p>
<p id="t3144450"><a class="ts" href="#t3144450">52:24</a><span data-t="3144450,3147330">So, this is the Netscape, the, the</span> <span data-t="3147330,3149610">not the Netscape, the Netflix story,</span> <span data-t="3149610,3150090">right?</span> <span data-t="3150990,3152790">Including web browsers. This joint</span> <span data-t="3152790,3154530">conglomerated strategies interest</span> <span data-t="3154530,3156930">strategic interest is to make</span> <span data-t="3156930,3159210">entertainment delivery web browsers,</span> <span data-t="3159210,3161010">a commodity for which nobody can</span> <span data-t="3161010,3161730">charge money.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=The%20cheaper%20the%20browsers%2C" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3164250"><a class="ts" href="#t3164250">52:44</a><span data-t="3164250,3165450">And then Internet Explorer happened,</span> <span data-t="3165450,3167250">and then everything was blocked for</span> <span data-t="3167250,3167790">about 10 years.</span> </p>
<p id="t3169980"><a class="ts" href="#t3169980">52:49</a><span data-t="3169980,3170040">Yeah.</span> <span data-t="3170940,3171840">So you can still?</span> <span data-t="3174330,3176790">Hindo that plan by having a product</span> <span data-t="3176790,3178770">that is widely used and stagnant.</span> <span data-t="3180120,3182100">Like Microsoft did, which is how they</span> <span data-t="3182100,3185580">made Windows happen until Windows</span> <span data-t="3185580,3187980">Vista happened. Yeah, so it's like</span> <span data-t="3187980,3190200">it's a struggle all the way down, right?</span> </p>
<p id="t3193740"><a class="ts" href="#t3193740">53:13</a><span data-t="3193740,3195120">So, it's interesting to read these</span> <span data-t="3195120,3196500">kind of articles 20 years later.</span> <span data-t="3197880,3200400">And then have the actual how these</span> <span data-t="3200400,3202200">things turned out. The the actual</span> <span data-t="3202200,3202860">history behind this?</span> <span data-t="3203940,3205680">And then compare it against the arguments.</span> <span data-t="3206760,3206820">Um.</span> <span data-t="3207900,3208440">And he goes on.</span> </p>
<blockquote>
<p id="t3208440"><a class="ts" href="#t3208440">53:28</a><span data-t="3208440,3209340">My argument is a</span> <span data-t="3209340,3210720">little bit tortured by the fact that</span> <span data-t="3210720,3212700">Internet Explorer is free as in beer.</span> </p>
<p id="t3212700"><a class="ts" href="#t3212700">53:32</a><span data-t="3212700,3213540">Oh, he was talking about this.</span> <span data-t="3213540,3216060">Microsoft wanted to make web browsers</span> <span data-t="3216060,3218160">a commodity, too, so they can sell</span> <span data-t="3218160,3219540">desktop and server operating systems,</span> <span data-t="3219540,3221520">so you can see here that two</span> <span data-t="3221520,3222840">conglomerates are trying to compete</span> <span data-t="3222840,3225660">for the same ish commodity, but for</span> <span data-t="3225660,3226260">different reasons.</span> <span data-t="3227760,3229500">They went a step further and</span> <span data-t="3229500,3230700">delivered a collection of components</span> <span data-t="3230700,3232500">which anyone could use to throw</span> <span data-t="3232500,3233700">together web browser.</span> </p>
<p id="t3233700"><a class="ts" href="#t3233700">53:53</a><span data-t="3233700,3237000">New planet, AOL, and Juno use these</span> <span data-t="3237000,3238260">components to build their own web</span> <span data-t="3238260,3238680">browsers.</span> <span data-t="3239460,3241800">Give, like currently everybody's</span> <span data-t="3241800,3242760">using chromium.</span> <span data-t="3243780,3245400">As a foundation to build their own</span> <span data-t="3245400,3245880">web browsers.</span> <span data-t="3246480,3248160">Giving, given that IE is free. What</span> <span data-t="3248160,3250200">is the incentive for Netscape to make</span> <span data-t="3250200,3252240">the browser even cheaper? It's a</span> <span data-t="3252240,3253560">preemptive move they need to prevent</span> <span data-t="3253560,3255900">Microsoft getting a complete Monopoly</span> <span data-t="3255900,3257880">in web browsers, even free web</span> <span data-t="3257880,3259620">browsers because it would,</span> <span data-t="3259620,3260760">theoretically, because that would</span> <span data-t="3260760,3262380">theoretically give Microsoft an</span> <span data-t="3262380,3264000">opportunity to increase the cost of</span> <span data-t="3264000,3266640">web browsing in other ways, Say by</span> <span data-t="3266640,3267840">increasing the price of Windows.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=My%20argument%20is%20a" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3269940"><a class="ts" href="#t3269940">54:29</a><span data-t="3269940,3271440">And notice Windows is completely</span> <span data-t="3271440,3272160">free, I think.</span> <span data-t="3273180,3275280">Because it's now the commodity.</span> <span data-t="3276900,3279300">Two other things, which is probably.</span> </p>
<p id="t3282660"><a class="ts" href="#t3282660">54:42</a><span data-t="3282660,3284460">It's not the server. I mean, it's</span> <span data-t="3284460,3285660">also like Azure, but.</span> <span data-t="3286920,3289320">What is Microsoft Windows, the</span> <span data-t="3289320,3290880">commodity tool that they're trying to</span> <span data-t="3290880,3293700">commoditize? I guess it's like a mode</span> <span data-t="3293700,3294720">for people to stay on.</span> <span data-t="3296640,3299700">Because Linux on a desktop which is?</span> <span data-t="3301470,3303570">Yeah, but switch, like, oh, it's</span> <span data-t="3303570,3303930">okay, so?</span> <span data-t="3305010,3307350">Microsoft is also trying to sell</span> <span data-t="3307350,3307890">advertise.</span> </p>
<p id="t3307890"><a class="ts" href="#t3307890">55:07</a><span data-t="3307890,3309750">I mean, they're kind of. They don't</span> <span data-t="3309750,3310650">really know where they're going,</span> <span data-t="3310650,3311790">right? So, they're like trying to</span> <span data-t="3311790,3313710">sell advertising in the start menu.</span> <span data-t="3313710,3316830">They have Bing as their web search</span> <span data-t="3316830,3318630">alternative to Google.</span> <span data-t="3321450,3323130">Um, they have Linux on the desktop</span> <span data-t="3323130,3326310">trying to take their cake and it's</span> <span data-t="3326310,3327210">kind of doing that right now.</span> </p>
<p id="t3327210"><a class="ts" href="#t3327210">55:27</a><span data-t="3327210,3329250">With valve for the gamers and with, like?</span> <span data-t="3330450,3332850">Other people by that are building</span> <span data-t="3332850,3335550">distros for power users, and I mean,</span> <span data-t="3335550,3339090">I and Ubuntu for my grandmother 10</span> <span data-t="3339090,3340830">years ago, and it was perfectly fine,</span> <span data-t="3340830,3342210">and she had enough.</span> <span data-t="3344670,3346470">Capabilities to write her books on</span> <span data-t="3346470,3348930">it, and the printer worked so like?</span> </p>
<p id="t3352170"><a class="ts" href="#t3352170">55:52</a><span data-t="3352170,3352590">There wasn't really.</span> <span data-t="3354810,3356070">There wasn't really a need for</span> <span data-t="3356070,3357930">Windows even like a decade ago.</span> <span data-t="3359520,3362160">Unless you're doing like 3D power CAD</span> <span data-t="3362160,3364740">software stuff for like Final Cut</span> <span data-t="3364740,3367320">Pro, but then you were using Mac OS</span> <span data-t="3367320,3367560">anyway.</span> </p>
<p id="t3373500"><a class="ts" href="#t3373500">56:13</a><span data-t="3373500,3376680">Yeah, so I mean Windows is is a</span> <span data-t="3376680,3377520">commodity at this point and?</span> <span data-t="3378720,3380340">Some and something that's waning, I</span> <span data-t="3380340,3380580">would say.</span> </p>
<p id="t3384960"><a class="ts" href="#t3384960">56:24</a><span data-t="3384960,3386760">But that's from my own point of view,</span> <span data-t="3386760,3389280">who has been using Linux on the</span> <span data-t="3389280,3390900">desktop for 15 years plus.</span> <span data-t="3392520,3395340">Um and I only use Windows for gaming</span> <span data-t="3395340,3397980">and it's fine-ish.</span> <span data-t="3399000,3401100">I don't know. I don't even have it</span> <span data-t="3401100,3403020">logged onto my Microsoft account even</span> <span data-t="3403020,3404400">though they try to make me every</span> <span data-t="3404400,3405240">three days, but</span> <span data-t="3406380,3407880">Yeah, as long as they can click away.</span> </p>
<p id="t3409020"><a class="ts" href="#t3409020">56:49</a><span data-t="3409020,3410820">Please, please finish setting up your</span> <span data-t="3410820,3411960">PC thing.</span> <span data-t="3413100,3413640">It's okay.</span> </p>
<p id="t3416940"><a class="ts" href="#t3416940">56:56</a><span data-t="3416940,3417060">Okay,</span> </p>
<blockquote>
<p id="t3417060"><a class="ts" href="#t3417060">56:57</a><span data-t="3417060,3419040">my argument is even more shaky</span> <span data-t="3419040,3420300">because it's pretty clear that</span> <span data-t="3420300,3422340">Netscape in the days of Parks stale</span> <span data-t="3422340,3423480">didn't exactly know what it was doing</span> <span data-t="3423480,3425880">a more likely explanation of what</span> <span data-t="3425880,3427680">Netscape did. Is that up of</span> <span data-t="3427680,3429300">management was technologically</span> <span data-t="3429300,3431520">technologically inept, and they had</span> <span data-t="3431520,3432720">no choice but to go along with</span> <span data-t="3432720,3434580">whatever scheme the developers came</span> <span data-t="3434580,3434820">up with.</span> </p>
<p id="t3434820"><a class="ts" href="#t3434820">57:14</a><span data-t="3434820,3437160">The developers were hackers, not</span> <span data-t="3437160,3438900">economists, and only coincidentally</span> <span data-t="3438900,3440520">came up with a scheme which served</span> <span data-t="3440520,3441840">their strategy, but let's give them</span> <span data-t="3441840,3443160">the benefit of the doll, I mean.</span> <span data-t="3444180,3445800">Netscape doesn't exist anymore, so</span> <span data-t="3445800,3447900">they clearly didn't really have a plan.</span> <span data-t="3450480,3453120">Headline transmit a highest linels</span> <span data-t="3453120,3455040">pays them to hacker Linux myth.</span> </p>
<p id="t3455040"><a class="ts" href="#t3455040">57:35</a><span data-t="3455040,3456780">They just did it to get publicity.</span> <span data-t="3456780,3459180">Would you have heard of transmitter</span> <span data-t="3459180,3461520">otherwise, reality transmitter is a</span> <span data-t="3461520,3463740">CPU company, the natural complement</span> <span data-t="3463740,3465360">of a CPU is an operating system.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=my%20argument%20is%20even" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3465360"><a class="ts" href="#t3465360">57:45</a><span data-t="3465360,3468060">Transmitter wants os's to be a commodity.</span> <span data-t="3468960,3471720">Headline sudden HP Peg Simeon to</span> <span data-t="3471720,3474240">hakong gnome myth. Sonich peer</span> <span data-t="3474240,3475020">supporting free software because</span> <span data-t="3475020,3477360">they're light bazaars, not cathedrals.</span> </p>
<p id="t3477360"><a class="ts" href="#t3477360">57:57</a><span data-t="3477360,3479460">Also, like they open source star</span> <span data-t="3479460,3481020">office into LibreOffice. I don't know</span> <span data-t="3481020,3482400">how that happened, but I think there</span> <span data-t="3482400,3484680">was also Sun, so guess the same move</span> <span data-t="3484680,3486240">for Microsoft Office.</span> <span data-t="3487320,3489480">Reality. Sun and HPR Hardware</span> <span data-t="3489480,3490800">companies. They make boxing</span> </p>
<blockquote>
<p id="t3490800"><a class="ts" href="#t3490800">58:10</a><span data-t="3490800,3491340">in order</span> <span data-t="3491340,3493140">to make money on the desktop they</span> <span data-t="3493140,3494700">need for windowing systems, which are</span> <span data-t="3494700,3497280">complement of desktop computers to be</span> <span data-t="3497280,3498000">a commodity.</span> </p>
<p id="t3499020"><a class="ts" href="#t3499020">58:19</a><span data-t="3499020,3500580">Why don't they take the money and</span> <span data-t="3500580,3501900">they're paying Simeon and use it to</span> <span data-t="3501900,3503760">develop a propriety proprietary</span> <span data-t="3503760,3506460">windowing system they tried? This sun</span> <span data-t="3506460,3509220">had news and HP had New Wave, but</span> <span data-t="3509220,3510900">these are really Hardware companies</span> <span data-t="3510900,3513180">at heart with pretty crude software</span> <span data-t="3513180,3515340">skills, and they need windowing</span> <span data-t="3515340,3518100">systems to be a cheap commodity, not</span> <span data-t="3518100,3519660">a proprietary Advantage which they</span> <span data-t="3519660,3520260">have to pay for.</span> </p>
<p id="t3520260"><a class="ts" href="#t3520260">58:40</a><span data-t="3520260,3523260">So, they hide the nice guys as Simeon</span> <span data-t="3523260,3525000">to do this for the same reason that</span> <span data-t="3525000,3527100">sunboard star office oh, here we go</span> <span data-t="3527100,3528600">about star office.</span> <span data-t="3528960,3530640">Open source to commoditize software</span> <span data-t="3530640,3532140">and make more money on Hardware.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=in%20order%20to%20make" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3533040"><a class="ts" href="#t3533040">58:53</a><span data-t="3533040,3534060">Also, this is.</span> <span data-t="3534960,3537420">Kde with Nokia, I guess.</span> <span data-t="3539280,3540180">Who, which?</span> <span data-t="3542820,3544680">Yeah, I think that was their strategy for.</span> </p>
<p id="t3546960"><a class="ts" href="#t3546960">59:06</a><span data-t="3546960,3550260">Mobileish phones KDKD?</span> <span data-t="3551040,3552660">But yeah, KD is probably the same for</span> <span data-t="3552660,3554640">some other for some other company.</span> <span data-t="3556740,3558720">I mean, in Java, right, headlines,</span> </p>
<blockquote>
<p id="t3558720"><a class="ts" href="#t3558720">59:18</a><span data-t="3558720,3560640">Sun develops. Java new bytecode</span> <span data-t="3560640,3562140">system means write once, run</span> <span data-t="3562140,3564600">anywhere. The bytecode idea is not</span> <span data-t="3564600,3565860">new. Programmers have always tried to</span> <span data-t="3565860,3567840">make the code run on as many machines</span> <span data-t="3567840,3568140">as possible.</span> </p>
<p id="t3568140"><a class="ts" href="#t3568140">59:28</a><span data-t="3568140,3570300">That's how you commoditize your</span> <span data-t="3570300,3570660">complement</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=Sun%20develops.%20Java%20new" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3570660"><a class="ts" href="#t3570660">59:30</a><span data-t="3570660,3572940">for make for years micros,</span> <span data-t="3572940,3574020">but that's also C.</span> <span data-t="3575040,3576420">C is one of the most.</span> <span data-t="3577980,3580800">Commoditizing their complement</span> <span data-t="3580800,3582840">language, which is, it is an abstract.</span> <span data-t="3584040,3586500">I mean, it signifies a machine that</span> <span data-t="3586500,3587400">just can run.</span> <span data-t="3588720,3590220">Somewhat efficiently everywhere, right?</span> <span data-t="3591240,3592560">And because of undefined Behavior,</span> <span data-t="3592560,3593040">you can make it.</span> </p>
<p id="t3594300"><a class="ts" href="#t3594300">59:54</a><span data-t="3594300,3595740">Pretty efficient on most systems,</span> <span data-t="3595740,3598440">even for weird bite size and stuff.</span> </p>
<blockquote>
<p id="t3601440"><a class="ts" href="#t3601440">1:00:01</a><span data-t="3601440,3603000">For years, Microsoft had its own P</span> <span data-t="3603000,3605160">code compiler and portable windowing</span> <span data-t="3605160,3607020">layer, which let Excel run on Mac,</span> <span data-t="3607020,3609540">Windows, and OS 2, and on Motorola,</span> <span data-t="3609540,3611820">Intel, Alpha mips, and power PC chips.</span> <span data-t="3612600,3614460">Quark has a layer which runs</span> <span data-t="3614460,3615600">Macintosh codes on Windows.</span> <span data-t="3616560,3618000">The C programming language is best</span> <span data-t="3618000,3619380">described as a hardware independent</span> <span data-t="3619380,3620220">assembler language.</span> </p>
<p id="t3620220"><a class="ts" href="#t3620220">1:00:20</a><span data-t="3620220,3622440">Oh, here we go. It's not a new idea</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=For%20years%2C%20Microsoft%20had" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3622440"><a class="ts" href="#t3622440">1:00:22</a><span data-t="3622440,3623760">in too software developers.</span> <span data-t="3624780,3627540">Also wine on Linux and.</span> <span data-t="3628920,3632640">No WSL Windows. What's called the</span> <span data-t="3632640,3634740">thing that makes Linux apps run on</span> <span data-t="3634740,3637080">Windows and also the whole Unix tool</span> <span data-t="3637080,3637860">chain run on Windows?</span> </p>
<blockquote>
<p id="t3638760"><a class="ts" href="#t3638760">1:00:38</a><span data-t="3638760,3640680">If you can run your software anyway,</span> <span data-t="3640680,3642900">anywhere that makes Hardware more of</span> <span data-t="3642900,3643380">a commodity.</span> </p>
<p id="t3643380"><a class="ts" href="#t3643380">1:00:43</a><span data-t="3643380,3645600">As Hardware prices go down, the</span> <span data-t="3645600,3647460">market expands, driving more demand</span> <span data-t="3647460,3649260">for software and leaving customers</span> <span data-t="3649260,3650700">with extra money to spend on</span> <span data-t="3650700,3652140">software, which can now be more expensive.</span> <span data-t="3653640,3657780">Sons enthusiasm for wara?</span> <span data-t="3658620,3660660">Whatever that was, is, I'm strange</span> <span data-t="3660660,3662100">because sun is a hardware company</span> <span data-t="3662100,3664560">making Hardware commodity is the last</span> <span data-t="3664560,3667260">thing they want to do, oops.</span> </p>
<p id="t3668880"><a class="ts" href="#t3668880">1:01:08</a><span data-t="3668880,3670320">Sun is the loose Cannon of the</span> <span data-t="3670320,3672720">computer industry, unable to see past</span> <span data-t="3672720,3674460">their raging fear and loathing of</span> <span data-t="3674460,3676500">Microsoft. They adopt strategies</span> <span data-t="3676500,3678780">based on anger rather than self-interest.</span> <span data-t="3679740,3682680">Son's two strategies are a make</span> <span data-t="3682680,3684240">software commodity by promoting and</span> <span data-t="3684240,3687000">developing free software. Star offers</span> <span data-t="3687000,3689880">Linux Apache ignom or Apache was</span> <span data-t="3689880,3690240">something.</span> </p>
<p id="t3692280"><a class="ts" href="#t3692280">1:01:32</a><span data-t="3692280,3694680">Np make Hardware commodity by</span> <span data-t="3694680,3697500">promoting Java with with its bytecode</span> <span data-t="3697500,3698580">architecture and vora.</span> <span data-t="3699300,3701520">Okay, so on Pop Quiz. When the Music</span> <span data-t="3701520,3702900">Stops where you're going to sit down</span> <span data-t="3702900,3706020">without proprietary advantages in</span> <span data-t="3706020,3707041">Hardware or software, you're going to</span> <span data-t="3707041,3709500">have to take commodity price. The</span> <span data-t="3709500,3711900">commodity price, which barely covers</span> <span data-t="3711900,3714180">the cost of cheap factories in</span> <span data-t="3714180,3716940">quarter whatever some Indian Town.</span> </p>
<p id="t3718020"><a class="ts" href="#t3718020">1:01:58</a><span data-t="3718020,3720480">Offices in Silicon Valley.</span> <span data-t="3723150,3725310">But Joel Jared's son is trying to</span> <span data-t="3725310,3726570">commoditize the operating system,</span> <span data-t="3726570,3728550">like transmitter, not the hardware,</span> <span data-t="3728550,3730710">maybe. But the fact that Java</span> <span data-t="3730710,3732330">bytecode also commoditizes. The</span> <span data-t="3732330,3733770">hardware is some pretty significant</span> <span data-t="3733770,3735630">collateral damage to sustain,</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=If%20you%20can%20run" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t3735630"><a class="ts" href="#t3735630">1:02:15</a><span data-t="3735630,3736230">which I</span> <span data-t="3736230,3738090">guess explains why Sun went down and</span> <span data-t="3738090,3740610">like got sold to Oracle for scraps</span> <span data-t="3740610,3741750">and scrap metal and.</span> </p>
<p id="t3742890"><a class="ts" href="#t3742890">1:02:22</a><span data-t="3742890,3744510">Whatever they did to Java after that.</span> <span data-t="3745530,3747090">Um, Sunset, it, I guess.</span> <span data-t="3747870,3748290">Um.</span> </p>
<p id="t3753180"><a class="ts" href="#t3753180">1:02:33</a><span data-t="3753180,3755520">I had a thought about this a few</span> <span data-t="3755520,3755820">seconds ago.</span> <span data-t="3757140,3760080">My Hardware commodity, oh yeah, AI.</span> <span data-t="3760080,3763140">So, lnms lms don't have a mode.</span> <span data-t="3764040,3765960">Like, I don't understand, like?</span> <span data-t="3767520,3768960">It's pretty obvious to anybody who</span> <span data-t="3768960,3770640">knows how these things are not work</span> <span data-t="3770640,3772140">under the hoodest. You just need a</span> <span data-t="3772140,3774240">lot of compute power, and that</span> <span data-t="3774240,3775260">basically, and a few people that you</span> <span data-t="3775260,3778440">can buy for like a million a year.</span> </p>
<p id="t3779760"><a class="ts" href="#t3779760">1:02:59</a><span data-t="3779760,3782100">Just by paying more than your than</span> <span data-t="3782100,3783180">the other companies. So, you just</span> <span data-t="3783180,3784620">need a lot of investment money, and</span> <span data-t="3784620,3786780">you can spin up a company, and also</span> <span data-t="3786780,3788700">there's a lot of very smart people in</span> <span data-t="3788700,3790620">China that will do it for the stage.</span> <span data-t="3791820,3794160">So you get deepsea, you get Kimmy,</span> <span data-t="3794160,3796140">you get whatever Alibaba Cloud?</span> </p>
<p id="t3797640"><a class="ts" href="#t3797640">1:03:17</a><span data-t="3797640,3799560">Um, you get rock.</span> </p>
<p id="t3802800"><a class="ts" href="#t3802800">1:03:22</a><span data-t="3802800,3804720">So there's like zero modes.</span> <span data-t="3806760,3808740">Basically, anybody that can type text</span> <span data-t="3808740,3812340">to to some, like, it's a pipe text</span> <span data-t="3812340,3816420">into curl remote server returns Json</span> <span data-t="3816420,3819600">Affair. And it's like, very simple to</span> <span data-t="3819600,3821280">implement technically, and that's why</span> <span data-t="3821280,3822540">everybody is doing it right now.</span> <span data-t="3825000,3825300">Also, you can.</span> <span data-t="3826440,3828780">Quantize these models to fit on small</span> <span data-t="3828780,3831120">commodity Hardware already.</span> </p>
<p id="t3831120"><a class="ts" href="#t3831120">1:03:51</a><span data-t="3831120,3833100">Like, you can run some models on.</span> <span data-t="3834510,3838110">Um, Mac minis or on your MacBook or</span> <span data-t="3838110,3843450">your newfangled arm or AMD chips</span> <span data-t="3843450,3845310">system on on a chip.</span> <span data-t="3846900,3848520">So, yeah, so these things are like</span> <span data-t="3848520,3850740">they have zero modes, so they're</span> <span data-t="3850740,3852360">they're already Commodities, and they</span> <span data-t="3852360,3853980">already have been Commodities for,</span> <span data-t="3853980,3854640">like, at least two years.</span> </p>
<p id="t3855960"><a class="ts" href="#t3855960">1:04:15</a><span data-t="3855960,3858300">So, this whole hype is basically.</span> <span data-t="3859740,3861120">Either. They're gonna figure out how</span> <span data-t="3861120,3861720">to make.</span> <span data-t="3863370,3866070">The Trump Administration create laws</span> <span data-t="3866070,3868770">for them to have artificial, like how</span> <span data-t="3868770,3871050">software patterns work or how?</span> <span data-t="3873060,3875280">The law system works is basically</span> <span data-t="3875280,3877260">create artificial modes that are not.</span> <span data-t="3878250,3880770">Inherently there by abusing the</span> <span data-t="3880770,3883350">society societal system.</span> </p>
<p id="t3884670"><a class="ts" href="#t3884670">1:04:44</a><span data-t="3884670,3886350">Um, to make things.</span> <span data-t="3887910,3890550">Economically viable, which is</span> <span data-t="3890550,3891990">probably what entropic is trying to</span> <span data-t="3891990,3896190">do or GPT, or like open AIS trying to do.</span> <span data-t="3897630,3899910">But then they won't have success</span> <span data-t="3899910,3901770">because the Chinese are already</span> <span data-t="3901770,3902490">releasing these things.</span> </p>
<p id="t3906450"><a class="ts" href="#t3906450">1:05:06</a><span data-t="3906450,3910170">Three basically to download, so this</span> <span data-t="3910170,3911610">this is not going anywhere, and I</span> <span data-t="3911610,3911790">feel like.</span> <span data-t="3912930,3914490">I have no idea what this is, like the</span> <span data-t="3914490,3916530">only people who are winning are the</span> <span data-t="3916530,3918150">hardware producers basically and even</span> <span data-t="3918150,3920970">that. Like, because of llms.</span> <span data-t="3921870,3924630">Like the the advantage that Nvidia</span> <span data-t="3924630,3926610">had with their proprietary whatever</span> <span data-t="3926610,3927690">they it was called?</span> </p>
<p id="t3929070"><a class="ts" href="#t3929070">1:05:29</a><span data-t="3929070,3930870">Their libraries stack basically.</span> <span data-t="3930870,3932550">Isn't there anymore? They already</span> <span data-t="3932550,3934650">retreated on the Linux front by</span> <span data-t="3934650,3937350">saying, oh yeah, we're gonna open</span> <span data-t="3937350,3940050">source our drivers and maybe put some</span> <span data-t="3940050,3941850">most of it on the graphics cards, but?</span> <span data-t="3943800,3945180">They're already retreating.</span> <span data-t="3946680,3947640">Um, on that front, so?</span> <span data-t="3948900,3950520">I feel like graphics card are gonna</span> <span data-t="3950520,3952260">be com commoditized.</span> </p>
<p id="t3952260"><a class="ts" href="#t3952260">1:05:52</a><span data-t="3952260,3954000">There's people building Asic.</span> <span data-t="3954840,3956520">Um, chips that you can just plug into</span> <span data-t="3956520,3958980">your PCS that have like a burnt in</span> <span data-t="3958980,3959880">model on them, so.</span> <span data-t="3961740,3963960">Plug a piece of Hardware into your</span> <span data-t="3963960,3965580">PC, like with the old graphics cards</span> <span data-t="3965580,3967380">like, essentially, like.</span> <span data-t="3968850,3970710">Like a Bitcoin mining rig, right? You</span> <span data-t="3970710,3971850">plug this in, and then you have a</span> <span data-t="3971850,3974070">model that you can talk to at, like</span> <span data-t="3974070,3976890">10, 100 times the speed of emulating</span> <span data-t="3976890,3977970">on graphic cards.</span> </p>
<p id="t3979560"><a class="ts" href="#t3979560">1:06:19</a><span data-t="3979560,3980340">So there's like?</span> <span data-t="3981000,3982500">Now, these things are already</span> <span data-t="3982500,3983940">Commodities. You can't tell me any</span> <span data-t="3983940,3985140">other on otherwise.</span> <span data-t="3987240,3989760">So, I'm not sure how the economics</span> <span data-t="3989760,3990420">are going to play out there.</span> </p>
<blockquote>
<p id="t3995280"><a class="ts" href="#t3995280">1:06:35</a><span data-t="3995280,3996840">An important thing you notice from</span> <span data-t="3996840,3998160">all these examples is that it's easy</span> <span data-t="3998160,4000260">for software to commoditize Hardware.</span> <span data-t="4001100,4002480">Just for a little hardware</span> <span data-t="4002480,4004460">abstraction layer like Windows NT,</span> <span data-t="4004460,4006740">hell, and T Health like Windows and</span> <span data-t="4006740,4009080">T's hell, which is a tiny piece of</span> <span data-t="4009080,4011000">code, but it's incredibly hard for</span> <span data-t="4011000,4012980">Hardware to commoditize software.</span> </p>
<p id="t4012980"><a class="ts" href="#t4012980">1:06:52</a><span data-t="4012980,4014660">So, this is the same thing as</span> <span data-t="4014660,4017180">commoditizing art, right? Like, a</span> <span data-t="4017180,4019100">piece of art is a piece of art is a</span> <span data-t="4019100,4020360">piece of piece of art, and you can't</span> <span data-t="4020360,4022460">replace a Monet with some cheap</span> <span data-t="4022460,4024860">knockoff AI generated money. It's</span> <span data-t="4024860,4027020">not, it's not the same. It's like a</span> <span data-t="4027020,4028640">single instance of this thing, and</span> <span data-t="4028640,4030200">maybe you can make a print of the.</span> </p>
<p id="t4031040"><a class="ts" href="#t4031040">1:07:11</a><span data-t="4031040,4031160">Thing, but</span> <span data-t="4032330,4032510">Um.</span> <span data-t="4033770,4033890">Yeah.</span> <span data-t="4034730,4036830">Software is not interchangeable, as</span> <span data-t="4036830,4038870">staff is the star office marketing</span> <span data-t="4038870,4039530">team is learning.</span> <span data-t="4040490,4042770">Even when the price is zero, the cost</span> <span data-t="4042770,4044390">of switching from Microsoft Office is</span> <span data-t="4044390,4046610">non-zero until the switching cost</span> <span data-t="4046610,4046970">becomes</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=An%20important%20thing%20you" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t4046970"><a class="ts" href="#t4046970">1:07:26</a><span data-t="4046970,4048050">you. And that's the thing</span> <span data-t="4048050,4049790">with llm stack, the switching cost is</span> <span data-t="4049790,4050210">zero.</span> </p>
<p id="t4050210"><a class="ts" href="#t4050210">1:07:30</a><span data-t="4050210,4052670">Like, that's why there's open code</span> <span data-t="4052670,4054410">has integration of like a hundred</span> <span data-t="4054410,4055670">different providers because they are</span> <span data-t="4055670,4059150">already like the switching cost is or</span> <span data-t="4059150,4061190">has always been zero for. These</span> <span data-t="4061190,4062630">things is token and token out.</span> <span data-t="4062630,4064250">Doesn't matter whether it's like a</span> <span data-t="4064250,4066890">PDF or a PNG like, this is all</span> <span data-t="4066890,4068390">completely replaceable.</span> </p>
<p id="t4069650"><a class="ts" href="#t4069650">1:07:49</a><span data-t="4069650,4071090">And maybe you get like a little</span> <span data-t="4071090,4073670">degraded results, but nothing</span> <span data-t="4073670,4076250">fundamentally unfixable.</span> </p>
<blockquote>
<p id="t4080120"><a class="ts" href="#t4080120">1:08:00</a><span data-t="4080120,4081260">Until the switching cost becomes</span> <span data-t="4081260,4083180">zero. Desktop office software is not</span> <span data-t="4083180,4084020">truly a commodity.</span> <span data-t="4084920,4086480">And even the smallest differences can</span> <span data-t="4086480,4088700">make two softer packages, a pain to</span> <span data-t="4088700,4089960">switch between, not true anymore, not</span> <span data-t="4089960,4091340">true anymore. Despite the fact that</span> <span data-t="4091340,4093200">Mozilla has all the features I want.</span> <span data-t="4093200,4095420">I'd love to use it if it only avoid</span> <span data-t="4095420,4097160">if only to avoid the whack-a-mole</span> <span data-t="4097160,4098060">pop-up ad game.</span> </p>
<p id="t4098960"><a class="ts" href="#t4098960">1:08:18</a><span data-t="4098960,4100880">I'm too used to heading L to D to go</span> <span data-t="4100880,4103520">to the address bar, so sue me one</span> <span data-t="4103520,4104780">tiny difference, and you lose your</span> <span data-t="4104780,4107000">commodity status, but I've pulled</span> <span data-t="4107000,4109040">hard drives out of IBM computers and</span> <span data-t="4109040,4110660">slammed them into Dell computers and</span> <span data-t="4110660,4111980">boom. The system comes up perfectly</span> <span data-t="4111980,4112880">and</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=Until%20the%20switching%20cost" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t4112880"><a class="ts" href="#t4112880">1:08:32</a><span data-t="4112880,4115100">run and run the face as if it's</span> <span data-t="4115100,4116600">still the old computer.</span> </p>
<p id="t4116600"><a class="ts" href="#t4116600">1:08:36</a><span data-t="4116600,4119360">Hard drives are f****** magic, like</span> <span data-t="4119360,4120440">spinning discs.</span> <span data-t="4121460,4122420">The package you get?</span> <span data-t="4123380,4126380">Was like 12 spinning discs and read</span> <span data-t="4126380,4127100">heads in them.</span> <span data-t="4128120,4130340">Is complete like that. These things</span> <span data-t="4130340,4132920">even manage to exist in the physical</span> <span data-t="4132920,4134780">world is a complete.</span> <span data-t="4135860,4138020">It blows my brain, right? I have like</span> <span data-t="4138020,4139940">a 12 terabyte drive right in front of</span> <span data-t="4139940,4141560">me, which I haven't managed to put</span> <span data-t="4141560,4141801">into a.</span> </p>
<p id="t4143300"><a class="ts" href="#t4143300">1:09:03</a><span data-t="4143300,4144320">A case yet.</span> <span data-t="4145040,4147320">And like that, you can store this much.</span> <span data-t="4148340,4150260">Data on like this little physical</span> <span data-t="4150260,4151040">space is.</span> <span data-t="4152180,4154760">Incredible and the amount of?</span> <span data-t="4155840,4159200">Capitalist, you know, like the the</span> <span data-t="4159200,4159500">amount of?</span> </p>
<p id="t4162710"><a class="ts" href="#t4162710">1:09:22</a><span data-t="4162710,4164570">Orders of magnitudes of improvements</span> <span data-t="4164570,4166550">over this short of amount of time,</span> <span data-t="4166550,4168530">like in the in the like. When this</span> <span data-t="4168530,4169790">article was written, the biggest</span> <span data-t="4169790,4170870">drives were like.</span> <span data-t="4171650,4174110">A gigabyte, probably. And now it's 12</span> <span data-t="4174110,4174470">terabytes.</span> <span data-t="4176150,4178010">It is absolutely baffling.</span> <span data-t="4179990,4181790">Um, and even like the smallest.</span> <span data-t="4183050,4185750">The smallest USB drives are like?</span> </p>
<p id="t4186890"><a class="ts" href="#t4186890">1:09:46</a><span data-t="4186890,4188210">100 gigabytes no?</span> <span data-t="4190010,4190490">Which is crazy?</span> </p>
<p id="t4195440"><a class="ts" href="#t4195440">1:09:55</a><span data-t="4195440,4196640">Yeah, I've pulled hard drives out of</span> <span data-t="4196640,4198200">IBM computers and slam them into the</span> <span data-t="4198200,4199580">their computers and boom. The system</span> <span data-t="4199580,4201800">comes up perfectly and runs. If it is</span> <span data-t="4201800,4203480">as if it was still in your computer,</span> <span data-t="4203480,4205700">but the thing is, even though these</span> <span data-t="4205700,4207560">increases have been happening, the</span> <span data-t="4207560,4209000">interfaces have always been the same,</span> <span data-t="4209000,4211100">which means these things are</span> <span data-t="4211100,4212180">commodity Hardware.</span> </p>
<p id="t4212180"><a class="ts" href="#t4212180">1:10:12</a><span data-t="4212180,4214160">Like, even though only like three</span> <span data-t="4214160,4215600">providers in the world can build</span> <span data-t="4215600,4216020">these things.</span> <span data-t="4218030,4219230">There's the commodity Hardware</span> <span data-t="4219230,4220190">because there could be another.</span> <span data-t="4221900,4223460">Another provider that builds them,</span> <span data-t="4223460,4224780">maybe a bit little bit worse, maybe</span> <span data-t="4224780,4227120">only like a gigabyte instead of like,</span> <span data-t="4227120,4229400">maybe only like a terabyte instead of</span> <span data-t="4229400,4232040">10 terabytes, but it's still a commodity.</span> </p>
<p id="t4233000"><a class="ts" href="#t4233000">1:10:33</a><span data-t="4233000,4235520">Um, a real black box, right? A</span> <span data-t="4235520,4236120">replaceable thing?</span> </p>
<p id="t4239330"><a class="ts" href="#t4239330">1:10:39</a><span data-t="4239330,4241910">Um, Amos Mickelson, the CEO of Creo.</span> <span data-t="4241910,4244490">What, what kind of company is? Korea</span> </p>
<blockquote>
<p id="t4244490"><a class="ts" href="#t4244490">1:10:44</a><span data-t="4244490,4246410">told me that every employee in his</span> <span data-t="4246410,4247790">firm is required to take a course in</span> <span data-t="4247790,4249650">what he calls economic thinking.</span> <span data-t="4249650,4252770">Great idea. Even simple Concepts in</span> <span data-t="4252770,4254870">basic microeconomics go a long way to</span> <span data-t="4254870,4256310">understanding some of the fundamental</span> <span data-t="4256310,4257450">shifts going on today.</span> <a class="src" href="https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/#:~:text=told%20me%20that%20every" target="_blank" rel="noopener" title="Read this in “Strategy Letter V: The Economics of Open Source”"><span aria-hidden="true">↗</span><span class="vh"> Read this passage in the original (opens in a new tab)</span></a></p>
</blockquote>
<p id="t4258710"><a class="ts" href="#t4258710">1:10:58</a><span data-t="4258710,4259250">So, yeah, I mean.</span> <span data-t="4261680,4262700">A lot has been happening, and</span> <span data-t="4262700,4264020">everything's kind of still the same</span> <span data-t="4264020,4266180">like the the principles are still there.</span> <span data-t="4267020,4268400">Uh, once you know how to look for</span> <span data-t="4268400,4269420">them, you're going to see them</span> <span data-t="4269420,4271040">everywhere. I feel like, which is why</span> <span data-t="4271040,4271940">I want to talk about this.</span> <span data-t="4273200,4273380">Yes.</span> </p>
<p id="t4274640"><a class="ts" href="#t4274640">1:11:14</a><span data-t="4274640,4274760">Um.</span> <span data-t="4275780,4276320">Thanks for listening.</span> </p>
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function isFileDrag(e) {
return Array.prototype.indexOf.call(
(e.dataTransfer && e.dataTransfer.types) || [], 'Files') >= 0;
}
['dragenter', 'dragover'].forEach(function (ev) {
drop.addEventListener(ev, function (e) {
if (!isFileDrag(e)) return;
e.preventDefault();
e.dataTransfer.dropEffect = 'copy';
drop.classList.add('over');
});
});
['dragleave', 'dragend'].forEach(function (ev) {
drop.addEventListener(ev, function () { drop.classList.remove('over'); });
});
drop.addEventListener('drop', function (e) {
if (!isFileDrag(e)) return;
e.preventDefault();
drop.classList.remove('over');
if (e.dataTransfer.files.length) {
recordedTake = false;
file.files = e.dataTransfer.files;
file.dispatchEvent(new Event('change'));
}
});
file.addEventListener('change', function () {
if (!file.files.length) return;
var f = file.files[0];
text.textContent = recordedTake
? 'Your recording is ready to send'
: f.name;
if (f.size > maxBytes) {
say(recordedTake
? 'That take is ' + (f.size / 1048576).toFixed(1) +
' MB, over the ' + (maxBytes / 1048576) + ' MB limit. A shorter one will fit.'
: 'That file is ' + (f.size / 1048576).toFixed(1) +
' MB, which is over the limit. A shorter recording, or a lower ' +
'quality setting, should fit.', 'error');
} else {
say('');
}
});
form.addEventListener('submit', function (e) {
if (!file.files.length) {
e.preventDefault();
say('Pick a recording first.', 'error');
return;
}
if (file.files[0].size > maxBytes) {
e.preventDefault();
say('That file is too large to send.', 'error');
return;
}
e.preventDefault();
drop.classList.add('busy');
send.disabled = true;
say('Sending…');
fetch(form.action, { method: 'POST', body: new FormData(form) })
.then(function (r) {
return r.json().catch(function () {
return { ok: r.ok, error: 'The server said ' + r.status + '.' };
});
})
.then(function (r) {
if (r.ok) {
form.reset();
recordedTake = false;
preview.hidden = true;
preview.removeAttribute('src');
recTime.textContent = '';
recBtn.textContent = 'Record';
text.textContent = 'Drop a recording here, or pick one';
say('Sent. Thank you — it has arrived.', 'done');
} else {
say(r.error || 'That did not work.', 'error');
}
})
.catch(function () {
say('That did not get through. Check your connection and try again.',
'error');
})
.finally(function () {
drop.classList.remove('busy');
send.disabled = false;
});
});
var recorderEl = document.getElementById('recorder');
var recBtn = document.getElementById('rec');
var recTime = document.getElementById('rectime');
var preview = document.getElementById('preview');
var canRecord = !!(window.MediaRecorder && navigator.mediaDevices &&
navigator.mediaDevices.getUserMedia &&
window.DataTransfer);
if (canRecord) recorderEl.hidden = false;
var mediaRec = null, chunks = [], startedAt = 0, ticker = null, stream = null;
function mmss(sec) {
var m = Math.floor(sec / 60), s = sec % 60;
return m + ':' + (s < 10 ? '0' : '') + s;
}
function tick() {
var sec = Math.round((Date.now() - startedAt) / 1000);
recTime.textContent = mmss(sec) + ' — recording';
}
function stopTracks() {
if (stream) { stream.getTracks().forEach(function (t) { t.stop(); }); stream = null; }
}
function pickMime() {
var wanted = ['audio/webm;codecs=opus', 'audio/webm', 'audio/mp4', 'audio/ogg;codecs=opus'];
for (var i = 0; i < wanted.length; i++) {
if (MediaRecorder.isTypeSupported && MediaRecorder.isTypeSupported(wanted[i])) {
return wanted[i];
}
}
return '';
}
function startRecording() {
navigator.mediaDevices.getUserMedia({ audio: true }).then(function (s) {
stream = s;
chunks = [];
var mime = pickMime();
mediaRec = mime ? new MediaRecorder(s, { mimeType: mime }) : new MediaRecorder(s);
mediaRec.addEventListener('dataavailable', function (e) {
if (e.data && e.data.size) chunks.push(e.data);
});
mediaRec.addEventListener('stop', function () {
stopTracks();
clearInterval(ticker);
var type = (mediaRec.mimeType || 'audio/webm').split(';')[0];
var blob = new Blob(chunks, { type: type });
var ext = type.indexOf('mp4') >= 0 ? '.m4a'
: type.indexOf('ogg') >= 0 ? '.ogg' : '.webm';
var dt = new DataTransfer();
dt.items.add(new File([blob], 'recording' + ext, { type: type }));
file.files = dt.files;
recordedTake = true;
preview.src = URL.createObjectURL(blob);
preview.hidden = false;
recBtn.textContent = 'Record again';
recTime.textContent = mmss(Math.round((Date.now() - startedAt) / 1000));
file.dispatchEvent(new Event('change'));
});
mediaRec.start();
startedAt = Date.now();
tick();
ticker = setInterval(tick, 1000);
recBtn.textContent = 'Stop';
say('');
}).catch(function () {
say('The microphone is not available. You can still drop a file.', 'error');
});
}
file.addEventListener('click', function () { recordedTake = false; });
if (canRecord) {
recBtn.addEventListener('click', function () {
if (mediaRec && mediaRec.state === 'recording') {
mediaRec.stop();
} else {
startRecording();
}
});
}
fetch("/submit", { method: 'GET' })
.then(function (r) { return r.json(); })
.then(function (st) {
if (st && st.open === false) {
drop.classList.add('busy');
send.disabled = true;
say('Submissions are closed for the moment — the inbox is full. ' +
'Try again in a few days.', 'error');
}
})
.catch(function () { });
})();
(function () {
var box = document.getElementById('transcript-body');
var player = document.getElementById('player');
if (!box || !player) return;
var spans = Array.prototype.slice.call(box.querySelectorAll('span[data-t]'));
if (!spans.length) return;
var lines = spans.map(function (el) {
var t = (el.getAttribute('data-t') || '').split(',');
return { el: el, start: +t[0] / 1000, end: +t[1] / 1000 };
});
lines.forEach(function (line) {
line.el.addEventListener('click', function () {
if (player.paused) return;
var sel = window.getSelection && window.getSelection();
if (sel && !sel.isCollapsed) return;
player.currentTime = line.start;
});
});
function affordance() {
box.classList.toggle('seekable', !player.paused);
}
['play', 'playing', 'pause', 'ended', 'emptied'].forEach(function (ev) {
player.addEventListener(ev, affordance);
});
affordance();
var current = null;
function lineAt(t) {
var lo = 0, hi = lines.length - 1;
while (lo <= hi) {
var mid = (lo + hi) >> 1;
if (t < lines[mid].start) hi = mid - 1;
else if (t > lines[mid].end) lo = mid + 1;
else return lines[mid];
}
return null;
}
function mark(line) {
if (line === current) return;
if (current) current.el.classList.remove('playing');
if (line) line.el.classList.add('playing');
current = line;
}
player.addEventListener('timeupdate', function () {
mark(lineAt(player.currentTime));
});
player.addEventListener('seeked', function () {
mark(lineAt(player.currentTime));
});
function seekToHash() {
var m = /^#t(\d+)$/.exec(location.hash || '');
if (!m) return;
var t = +m[1] / 1000;
if (player.readyState > 0) {
player.currentTime = t;
mark(lineAt(t));
} else {
player.addEventListener('loadedmetadata', function once() {
player.removeEventListener('loadedmetadata', once);
player.currentTime = t;
mark(lineAt(t));
});
}
}
window.addEventListener('hashchange', seekToHash);
seekToHash();
})();
</script>
</body>
</html>
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