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Blackfriars: Leopard Family Pack Cashes in on Customer Loyalty, Honesty

Blackfriars: Leopard Family Pack Cashes in on Customer Loyalty, Honesty

by , 3:00 PM EDT, October 25th, 2007

By avoiding copy protection and onerous licensing and activation plus a properly set price for the Mac OS X Family Pack, Apple actually gains financially, according to Carl Howe of Blackfriars Communications on Thursday.

Based on some statistics about what percentage of Apple customers elect to purchase the Mac OS X Family Pack and some basic assumptions, Carl Howe analyzed the financial benefit to Apple by trusting their customers to buy the right version.

After all, a customer could just buy the single licensed copy and install it on every Mac in the household. Many do just that. Apple does nothing to prevent it.

Starting with some data supplied by John Gruber at The Daring Fireball, Mr. Howe set up a spreadsheet to analyze how much money Apple makes by having the policy that it does. The starting point is that a significant percentage of Leopard purchases tracked through Mr. Gruber's Website are Family Pack purchases. The calculation suggested that Apple makes more money by trusting its customers.

"Not using copy protection (which tends to offend loyal customers while doing little to combat actual piracy) and providing reasonable upgrade options is not only good marketing; it's good business," Mr. Howe concluded. "Apple's Family Pack licensing strategy will increase its upgrade revenue about $103 million or 6% over the $1.8 billion Leopard upgrade cycle. And in the process, Apple will cement customer loyalty to boot. It's just one more proof point that treating customers with respect and trusting them to be honest pays."

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: True that!

Copy protection, like many types of security, always seems to fluster honest users more than impede those who would copy and steal.

The key to success is to price things reasonably. If songs on the internet cost $0.25, then they're would be a lot less copying of music and more people buying it. In software, like music, almost all of the cost is in creating it, not distributing it.

Close Name:Montresor Posts: 11 Joined: 02 Feb 2007
Subject: In further news...

The sky is blue, smoking is bad for you, and bears defecate in the woods.

Seriously, how pathetic has our society gotten when an article that basically states "treating customers with respect and trusting them to be honest pays." is counter-intuitive news?

Close Name:acdc1174 Posts: 723 Joined: 16 Apr 2004
Subject: Re: In further news...

Quote
Montresor wrote:
The sky is blue, smoking is bad for you, and bears defecate in the woods.

Seriously, how pathetic has our society gotten when an article that basically states "treating customers with respect and trusting them to be honest pays." is counter-intuitive news?


I think it is news because it flies in the face of "conventional wisdom" among software manufacturers...specifically a certain OS manufacturer in the Pacific Northwest. I'm one of those people who gladly ponies up the $199 each time for the 3 machines we have in our house. I appreciate Apple not treating me like I can't be trusted and I reward them with my $$.

Close Name:Guest
Subject: True Here Also

My wife, two girls, my parents and I will "thank" Apple for reasonably pricing the Leopard Family Pack by purchasing it instead of just a single copy of the OS.

Close Name:Guest
Subject:

Quote
Montresor wrote:
The sky is blue, smoking is bad for you, and bears defecate in the woods.

Seriously, how pathetic has our society gotten when an article that basically states "treating customers with respect and trusting them to be honest pays." is counter-intuitive news?


Sometimes the obvious has to be stated out loud because some people [obviously] refuse to ackowledge the obvious.

Close Name:Guest
Subject: Another Family Pack buyer

$199 for a Tiger family pack and $199 for a Leopard family pack for four notebooks and a desktop Mac. I know how I will spend part of my day tomorrow. It's much less than the money that Windoze households would spend to upgrade their XP systems to Vista. They would also have to go through Microsoft's activation scheme for each machine, as well as sending off a pile of money to Symantec each year. MacOS X is cheap at the price, and I don't mind paying the extra $83 (academic price for a single Leopard license).

Close Name:ctopher Posts: 134 Joined: 25 Aug 2006
Subject:

Quote
Guest wrote:
My wife, two girls, my parents and I will "thank" Apple for reasonably pricing the Leopard Family Pack by purchasing it instead of just a single copy of the OS.


I assume then that your parents or your two girls share a machine and live in your house with you. According to the license you can install it on 5 machines in one house.

Very fair, so I have to buy a separate copy for my mother...

Close Name:Guest
Subject: I don't see why

I don't see why you would have to purchase a separate copy for your mother. yes it may state that single household thing in the licence but that was written by lawyers. I am sure if you explained the situation to Steve Jobs himself he would just say "don't worry about it" and probably thank you for your honesty.

As long as you don't install it on more than five Macs Apple are getting their money and you haven't taken the p*ss. After all, what happens if you install one copy on your teenage kids Macbook and they go off to university and live on campus? Will you have to de-install the OS to conform to licensing regs?

Close Name:Guest
Subject: Those that do not learn from history.....

The ironic thing is this was proven in the late 1980's. Two companies (a giant and a smaller upstart) were battling for control of an industry. The giant was using a locked install scheme that really irritated the consumer while the smaller company came out and said "we trust our customers, so we'll sell our stuff without this c***". The smaller company with the "trust customers" attitude won and the "Giant" company is gone. Who were these companies?
Giant: Lotus 1-2-3
Smaller upstart: Microsoft Excel

I guess Microsoft has forgotten their own past.

Close Name:ctopher Posts: 134 Joined: 25 Aug 2006
Subject:

Quote
Guest wrote:
I don't see why you would have to purchase a separate copy for your mother. yes it may state that single household thing in the licence but that was written by lawyers. I am sure if you explained the situation to Steve Jobs himself he would just say "don't worry about it" and probably thank you for your honesty.

As long as you don't install it on more than five Macs Apple are getting their money and you haven't taken the p*ss. After all, what happens if you install one copy on your teenage kids Macbook and they go off to university and live on campus? Will you have to de-install the OS to conform to licensing regs?


Yea, lets just make Steve Jobs a nice guy in order to excuse ourselves for violating the license.

"Ethicists and cultural critics have a word for people who do bad things but don't act like it: shameless."

(See http://www.strom.clemson.edu/becker/prtm320/goodbad.html )


And by the way, the example given is covered in the license.

"By “household” we mean a person or persons who share the same housing unit such as a home, apartment, mobile home, or condominium, including student members who are primary residents of that household but reside at a separate on-campus location."

So yes, my Mother taught me to abide by the rules and since she lives in a different city, she needs her own copy.

But you go ahead, I'm sure Steve really didn't mean to pay those lawyers to craft that very fair, very generous license.

By the way, there's no way to NOT sound holier than thou when discussing these issues, but it seems to me that this issue is very clear. If you disagree, lets discuss.

Close Name:Guest
Subject: ...

I DON'T KNOW WHAT WE ARE ALL YELLING ABOUT!

Close Name:sem68-19 Posts: 84 Joined: 27 May 2003
Subject: That nice Family Pack...

Sure, the Family Pack is like a gift for everybody except the professionals!

Is there a pro licence corresponding to the Family Pack, for example to share Leopard on macs, not necessarily networking?

I'd like to install it without a server, I mean I've 3 macs using Final Cut Pro and sharing only the Wi-Fi modem. I think it's never been clear...

TIA

Close Name:gslusher Posts: 2088 Joined: 13 Nov 2002
Subject: Re: That nice Family Pack...

Quote
sem68-19 wrote:
Sure, the Family Pack is like a gift for everybody except the professionals!

Is there a pro licence corresponding to the Family Pack, for example to share Leopard on macs, not necessarily networking?

I'd like to install it without a server, I mean I've 3 macs using Final Cut Pro and sharing only the Wi-Fi modem. I think it's never been clear...

TIA


With the "family pack," you can legally install Leopard on up to five Macs that are in a single "household." (There's a definition of "household" on Apple's web site.) It does not apply to business or commercial users. If you want to buy multiple seats in a business, you might contact Apple and see what they offer. You might start at Apple's small business site.

Close Name:Guest
Subject: Upgrading from "Single" to "Family" lice

I have two Macs (running Tiger & iLife 06) and just bought a Mini (with Leopard & iLife 08).

Is there a way to just pay the difference between a "single" license and a "family" so that I can run Leopard & iLfe 08 on all three machines?

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