Hi Reg, I see your point, but even if Nearmap might eventually...

Hi Reg,

I see your point, but even if Nearmap might eventually pay Google more $ for accessing Google Maps & Street View data, Nearmap does have a choice, that is they can either:

1) Pass on the cost to the end customer & hence maintain their existing profit margins.

2) Or absorb the increases and maintain their rapid growth trecjectory but sacrificing some “previously stated” profit margin.

As we all know, industry monopolies exercising their dominate power on pricing is not unusual, we see this with OPEC altering their oil production levels & hence affecting oil prices all the time.

However, when these monopoly pricing occurs, I guess the most important question one needs to ask is whether any affected businesses in the “chain” can also pass on or absorb these price fluctuations without permanent negative impacts to their own business.

With Nearmap’s current dominant position and with little competition offering the same mix of services, I believe this will not affect Nearmap’s long term competitive advantage at all.