02-26-2008, 09:28 AM | #1 |
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Free! Why $0.00 Is the Future of Business
This one is not directly about e-books per se, but it touches on so many things discussed here (from digital business models to micro payments...) and it's very interesting. Here:
http://www.wired.com/techbiz/it/maga...urrentPage=all |
02-26-2008, 10:34 AM | #2 |
Grand Sorcerer
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A very good article indeed. Despite the suggestion of the title and opening, it takes its time getting around to the fact that nothing's really free... someone, somewhere, is going to pay for it... it just might not be the person who gets the product.
It does a nice job of covering many of the ways that e-books could be sold for cheap to free. Shifting from direct payment to subsidization, by either an advertiser or other institution, or by another product or service, makes a lot of sense. It still puts the burden on the producer to find their subsidizing entity or product, so it doesn't allow everyone to automatically profit from just being on the web. But as more and more web-based producers compete for subsidization, it might be interesting to see how that market will develop over time. |
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02-26-2008, 10:37 AM | #3 |
Wizard
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Interesting. Perhaps a bit overly optimistic in places, but the core of the analysis seems sound. There certainly are bits and pieces to squabble over: E.g. in his Taxonomy of Free, I can't really see the difference between "Zero marginal cost" and "Gift economy" (there is one, he just doesn't make it clear), and in both cases he completely ignores the existence and role of tip jars. Sure, tip jars are kinda similar to the paying customer in the "Freemium" model. Still, it's not the same as that money buys you no additional service, and it would certainly have been worth mentioning.
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02-26-2008, 11:10 AM | #4 |
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It may be he doesn't see them as contributing enough to a product's subsidizing/support. Depending on consumer donations is very unreliable compared to other methods of subsidization. In most cases, tip jars have been demonstrated to be inadequate to provide reasonable compensation to the producer. (I emphasize "most"... there are always exceptions to every rule.)
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02-26-2008, 12:57 PM | #5 |
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I believe that the disconnection between getting a product and paying for a product is one of the major underlying causes of piracy. For example, I can watch a TV show (over the airwaves) for free. But the show is NOT free, a group of advertizers paid for the show, and provide it for me to watch free in order to get me to watch their commercials and buy their product. The result is generations of people used to getting "free" entertainment. From their viewpoint (and I am <not> endorsing it, just describing it.), they have developed a philosophical problem. Why pay for things they are used to getting for free? To make it worse, they have the technical capabilites to get it free, even when it was only designed for a pay model. Hence piracy.
"Free" has been limited to "broadcast" technologies, but those cover most mass-produced entertainments (books being the glaring exception. I have always wondered why books and other print media always charged something for their product, rather than using the advertising subsidy model, even when advertising paid for the vast majority of their costs. I guess it has to do with the use of a physical wrapper, versus the invisible airwaves.) This is the point of the "free" model. Find some other economic model to pay for the content and give it away for free (subsidy, advertising, et.al.), rather that fighting the generations of canalization for getting entertainment "free". (This does not include "event entertainment" (concerts, sporting events, theaters, ect.). There has been a steady market for these entertainments (for a fee) despite "free" entertainment. ) |
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02-26-2008, 01:25 PM | #6 | |
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Quote:
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02-26-2008, 10:10 PM | #7 | |
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Quote:
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02-26-2008, 10:38 PM | #8 |
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But that free TV show is not free. Someone has to have paid for the TV set used to watch the show.
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02-26-2008, 11:05 PM | #9 | |
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The point is more that the content is not actually free, someone has to create it. Once you leave hobbiests behind there's a need to support the creators. Personally I am happy to seek out and pay creators directly for the most part. That's what friends are for. I also frequent live gigs and review sites for the same reason. |
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02-27-2008, 06:00 AM | #10 | |
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I wouldn't say that the ads are paying for the shows, but rather that the shows are providing suitable spots for the ads. A french TV executive said his job was to provide "available brain time for ads". |
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02-27-2008, 06:34 AM | #11 |
Martin Kristiansen
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I love the comparison between the "free TV" model and magazines and books. Its obvious I suppose but I never picked it up.
I buy books and magazines, also music, but don't watch TV. I can page past adds in print and the music I buy has no adds. I do buy DVD's and even TV series. I like them but cannot watch TV because of the adds. I would pay to watch TV if it would ensure freedom from adds. I listen to the radio in the morning for news and traffic and kill it the moment the second add blares to life. Now I'm not sure but I don't believe I am that unusual. A business model that supplies free content and so on but pays for it by shoving adds down my face horrifies me. I would rather go without quite frankly. |
02-27-2008, 10:35 AM | #12 | |
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As long as the bills keep dropping through your letterbox (or arriving in your inbox), and as long as you have to pay money to get out of the supermarket with your bags full, you can't afford professional activity without some form of remuneration. People understand this, because it applies to them too. |
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02-27-2008, 11:25 AM | #13 | |
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Of course one way to respond is to fight the trend either by lawsuits and laws (music) or by not releasing the content digitally (books). The problem with lawsuits/laws is that outside of turning off the internet that is not going to work. Look at the big fuss over Comcast and p2p... Not releasing your products digitally works to some extent, but you lose revenue, market, have to contend with those that do release their wares digitally. The jury is still out on that tactic in my opinion, but I think it's a slow suicide. So the question still remains: how to generate enough revenue from digital content and the article addresses some ideas, which may all work in some cases since personally I think that will be answer - it depends - and the uniformity of earlier times (buy a book, pay for it...) is gone |
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02-27-2008, 11:55 AM | #14 | ||
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Also, there's the issue of February 17th, 2009. By American law, all broadcast signals have to switch over to a digital signal. This means that everyone will either need to buy a digital television (if they don't have one already) or a converter box. Therefore, the consumer will have to pay more for a product they already get. A better metaphor would be terrestrial radio. The stations put out a product that is subsidized by advertising or underwriting (for public radio). The consumer chooses to listen to a highly targeted station that will release advertisements custom tailored for that particular demographic. So, for example, John Deere will advertise on a country station and a imported cheese shop may underwrite the local NPR affiliate. This is stereotyping, I know, but that's how the game is played. Quote:
I just prefer my indoctrination to be at the surface rather than the subconscious. ;-) Last edited by plantedbypiggies; 02-27-2008 at 12:06 PM. |
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02-27-2008, 01:20 PM | #15 | |
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Some of us have discussed product placement elsewhere. I agree that PP can be okay, if it's not too obvious or distracting. Your mention of Transformers' use of GM cars parallels my notice of nothing but Fords in Knight Rider, and those aren't the only movies or TV shows that any of us could cite. OTOH, the James Bond movies have effectively used product placement... it's not impossible. Bottom line, I am okay with proper product placement, but if there is no effective way to do this, pay with advertisements. |
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