Tag: fred wilson

Required Reading: 2008-04-11

I’m starting a new feature called Required Reading. I already offer what I call the Media 2.0 Reader (in the sidebar) that tracks selected reading from around the web (via Google Reader). Required Reading will represent the best of the best. Frankly, I wish I’d written these pieces!

Today, two pieces of Required Reading with an economic perspective:

The Declining Power of the Firm
I’m already a big Umair Haque fan, and in this post Wilson pulls from a recent Haque piece and then extends it into issues swirling in the Microsoft / Yahoo! / Google / AOL story. What does it mean to public media? Well, the economics of the emerging edgeconomy are fundamentally what’s shattering the foundations of the mass media market in which we historically operate.

Microeconomics
Rosenblum’s writing is provocative and intelligent. You don’t have to agree, but you do have to confront his ideas. In this case, Rosenblum takes on the notion that new media services only pull in a fraction of their old media forerunners. He acknowledges the situation, but points out how new media also costs far less to produce than old media, in particular with respect to overhead costs. Given that many in public media work in large and expensive legacy facilities — especially in pubTV shops — this lesson will be increasingly critical to learn and then to turn into real-world practice.

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If you’re interested in wider-ranging readings across the web, you can follow my Media 2.0 Reader via RSS or by e-mail subscription. By the way, I’m always on the prowl for more and better sources of ideas and material related to new media, social media and public media, so be sure to share your recommended links.

Required Reading: FREE!

I was chatting with the boss this week when I made a shocking suggestion.

I told him that one or perhaps all of the audio (radio) programs we create today — and for which we charge hefty fees to “member” stations — be simply given away to any station that wanted it.

Immediately he shot back: “But someone has to pay for that content!”

I love these situations. I get to try out newfangled business or economics insights to suggest something that’s anathema to the old guard (people and/or ideas). Plus, it’s a little logical fallacy that’s fun to pick apart:

  • Me: Give it away for free.
  • Him: We can’t — someone has to pay for it.
  • Me: Who said no one would pay for it?

Indeed, someone must pay for the people and equipment (mostly people) required to produce award-winning content, regardless of medium or delivery system. The future isn’t all user-generated content (UGC).

The notion of free has come up a lot for me in the last year, as I’ve ruminated on the idea that PBS and NPR should give away all their content to incumbent pubcasting stations for free. (But someone has to pay for that content!) I’ll explore more of that idea in postings to come.

For now, I’d like to share some FREE readings that have been published within the last week concerning this notion of giving it away, seemingly willy-nilly. The notion of “free” has actually been a viable business option for decades, but in the digital media space the idea is gaining widespread traction very quickly.

Why free?

Because in the digital media world, where every user is one link away from any other user and everything can be digitally copied to perfection with little or no impediments, maintaining control is becoming impossible. Plus, as media content volume rises toward infinity (or certainly more than any one person can possibly consume), the value of content (in broad terms) falls toward zero.

So, here are my picks for the late February 2008 “free reader” if you want to get schooled in how and why giving it away makes sense in lots of situations:

Free! Why $0.00 Is the Future of Business
Chris Anderson / Wired / 25 Feb 2008

Anderson was the author of the article and follow-on book called The Long Tail that’s been cited as much as any Web 2.0 meme can possibly be cited. It’s accepted as a given truth (a little too easily, I might add) at this point. Now he’s been exploring the notion of free as a part of viable business models and this is the opening article in what’s sure to be both a series of thought pieces and, eventually a book. This is basically the seminal article of “free” at this point. There’s even a little intro video included with the article, featuring Anderson himself.

Chris Anderson Takes Up The Free Banner
Mike Masnick / Techdirt / 25 Feb 2008

That ‘Free’ Stuff Is Catching On…
Mike Masnick / Techdirt /26 Feb 2008

Masnick is a wizard at both succintcly explaining tech-focused business developments and eviscerating ideas that make no sense. In these two cases, he points out the Anderson article, adds some other links, and in the first article points out the mistake in Anderson’s logic — the notion that the “free” model turns economic principles on their heads. He rightly points out that, no, in fact no laws of economics are broken. Well worth your two clicks so you don’t get sucked into believing FREE is bigger than it is.

Free is the Future
Lee LeFever / Common Craft / 26 Feb 2008

Step aside from the free hyperbole for a moment and read this piece. In this case, the guy that owns and operates the Common Craft custom video development service explains all the ways in which his business — a money-making venture, to be sure — has benefited by using free technologies and services from other businesses. Indeed, his two-person shop is wildly successful today precisely due to the impacts those free services had on their ability to get the word out and share their work. It’s a great piece because Lefever takes you step by step through the ways in which “free” made their profitable business possible.

Free Is A Great Way To Make Money
Fred Wilson / A VC / 25 Feb 2008

This post is mostly a link over to the Anderson article — with one exception. Wilson points to one of his own posts from July 2005 (!) that discusses the notion of free in business models.

Better Than Free
Kevin Kelly / The Technium / 31 Jan 2008

  • Immediacy
  • Personalization
  • Interpretation
  • Authenticity
  • Accessibility
  • Embodiment
  • Patronage
  • Findability

Sick of discovering how you have to give it all away? Wondering how you’ll actually make money? Well here’s the antidote to the free movement — here’s what can’t be given away, what really carries lasting value. This article probably had more buzz at the IMA conference than perhaps any other because it lays down a conceptual map for the services that public media can provide that are fundamentally undisruptable (yes, I just made that word up).