from http://www.pcmag.com/issues/1517/pcmg0046.htm:

PC Magazine -- October 8, 1996

Software That Sells Itself

Is this the end of shrink-wrap?

Jon Kaufthal

A by-product of the Internet's tremendous growth is its increasing popularity as a medium for distributing free software, add-ons, and upgrades. In an effort to extend this phenomenon to packaged software, several firms have sparked a growth of new innovations that make it possible to purchase and download fully functional software instantly over the Internet.

Release Software's SalesAgent 2.0 is one such product poised to change the digital marketplace. This new sales tool is a module designed to be embedded within a program, making it possible for the program to sell itself. SalesAgent is distributed according to the now-familiar strategy of giving away software, letting users become addicted, and then forcing them to buy it. The module is activated after a predetermined number of days or levels, or after a user decides he needs a feature that's unavailable in the trial version. SalesAgent offers a number of ways to complete a purchase: phone, fax, credit card, direct modem, and now, the Internet.

For all the advantages, several hurdles stand in the way of these products' success. A major one is the Internet's limited bandwidth. With slower connections, even small programs can take hours to download.

According to industry analyst Tim Bajarin, people are simply locked in to the traditional model: "People like to pick up the box, read the back, pick up another box... ." Bajarin doesn't see electronic distribution replacing traditional channels soon, but he does believe that down the road, electronic distribution will dominate.

A shift to electronic distribution could help level the field for smaller developers by giving them an alternative to competing for shelf space. It could also facilitate the move to a subscription-based pricing model in which you "could buy a game by the level, or lease software," Bajarin explains.

Numerous companies offer similar products, such as IBM's Cryptolopes and Intertrust Technologies' Digibox. These tools are more limited and have yet to get off the ground.


Copyright (c) 1996 Ziff-Davis Publishing Company


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