Wired editor Chris "Long Tail
" Anderson has written a long rant for Wired, introducing his next book: FREE. When I read The Long Tail
(which explores the new markets that get opened by cheaper and cheaper cost of manufacture, distribution and marketing), I thought it was fantastic, right up to the part where Chris started talking about stuff that doesn't cost anything to copy, digital goods like music and ebooks and so on. As I read that chapter, I thought, oh ho, a divide-by-zero error! The market for digital goods isn't a market for goods at all: since the potential customers can choose to get all digital goods for free on the darknet, the digital goods market is actually a digital services
market: what iTunes Store and the rest sell is the service of getting the digital files in a way that's easier, smarter, or faster. The end "product" is the same (actually, the end product is often superior when you download it for free than when you pay for it -- the paid-for versions are often crippled with DRM, something that file-sharers thoughtfully remove for you before uploading).
So Free appears to be an exploration of the Divide-By-Zero problem in the Long Tail, and it's the kind of thing we really, really need:
This difference between cheap and free is what venture capitalist Josh Kopelman calls the "penny gap." People think demand is elastic and that volume falls in a straight line as price rises, but the truth is that zero is one market and any other price is another. In many cases, that's the difference between a great market and none at all.
The huge psychological gap between "almost zero" and "zero" is why micropayments failed. It's why Google doesn't show up on your credit card. It's why modern Web companies don't charge their users anything. And it's why Yahoo gives away disk drive space. The question of infinite storage was not if but when. The winners made their stuff free first.
Traditionalists wring their hands about the "vaporization of value" and "demonetization" of entire industries. The success of craigslist's free listings, for instance, has hurt the newspaper classified ad business. But that lost newspaper revenue is certainly not ending up in the craigslist coffers. In 2006, the site earned an estimated $40 million from the few things it charges for. That's about 12 percent of the $326 million by which classified ad revenue declined that year.
When Oracle bought Sun Microsystems, they acquired Java, Sun’s popular programming language, pitched from its inception as an open standard for the networked computer.
For more than four years, we’ve been writing about Prenda Law, a prolific copyright troll (that is, a company that sends dire legal threats and demands for money to people they accuse of copyright infringement, based on the flimsiest of evidence), whose conduct is so breathtakingly illegal that it feels like satire or performance art […]
Ewan McGee writes, “Creators of the YouTube channel H3H3 productions are being sued by the creator of the YouTube channel MattHossZone for showing/talking about one of his ‘pick up’ videos. YouTuber Philip DeFranco talks about the story in his YouTube show, sets up a GoFundMe page for the creators of H3H3 to help them with […]
Every company wants to harness the power of social media, but few understand how to make that happen. Be one of those select few with this Social Media Marketing Course & Certification package, now just $29 in the Boing Boing Store.Over 12 modules of course material, you’ll learn what it takes to increase a brand’s […]
If you’ve got a killer app idea, but don’t have the technical expertise to pull it off, get a crash course in all things app development with the Comprehensive Android Development Bundle, now over 90% off in the Boing Boing Store. Across 83 hours of training, you’ll learn to develop for the world’s most popular mobile OS, mastering […]
Jared Sinclair developed the RSS reader app Unread, which made $10,000 in its first 24 hours on the iOS market. And we’ve all heard the story of Flappy Bird developer Dong Nguyen, whose creation was reportedly earning $50,000 a day at the height of its 2013 explosion. While those are rare examples, they’re also testament to the […]