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Gruber ignores costs, that’s right. Probably should have mentioned those somewhere in his argument.

But, just so to make that clear, cost does of course not win by default. If something is bad enough, paying for the alternative could be the better thing to do.

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Gruber ignoring cost when it's often one of the strongest benefits that fall out of openness strikes me as disingenuous.

And yeah, cheap doesn't always win if it really sucks. You could make an argument that Theora sucks that bad, especially when you consider the lack of hardware decoders. But that isn't Gruber's argument at all. His analysis here is really off base.

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