Value

• Consumer commitment and persistence
• Smaller, more intimate community gives value
• Elitism as a positive feature leads to quality
• Churn is less socially costly at slow pace
• Willingness to bear costs of gated community
• Development of distinct cultural character

Costs

• Slow Growth
• Intimate, gated community makes "free samples" problematic
• Elitism as a negative leads to blandness and conformity
• Churn is more costly to provider due to higher acquistion costs
• Possible added authentication or support costs
• Conflict with advertising model