I was supposed to write a post on the movie industry: this is not yet the post I had in mind, but it’s still got something to do with it.
The entertainment industry is currently struggling for its own life: it produces content that costs big bucks, yet its consumers have become accustomed at getting it for free. And they don’t want to go back to the old days where you had to pay about 19$ for every record you’ld have in your music library, or (gosh!) 7/8$ for each and every movie you’ld watch.
Broandband + Peer2Peer have resulted in millions of consumers getting and sharing all that content for free, and not seeing much wrong in it.
In the last issue of Wired, Chris Anderson offers a broad view on the economics of free: how the digitalization of many industries is at the same time forcing and allowing companies to give away products and services for free, and how it’s still possible to make (loads of) money out of it. (If you were wondering, yes, you can read the article for free)
Anderson also offers a list of 6 possible free-marketing strategies, with examples of successful activities.
Though noone can deny that so many industries must sort out the contraddiction between suppliers that are determined to get paid, and consumers that are not willing to pay, it’s still unclear whether some of the examples provided only succeeded because they were attractive, new experiments (Prince, Radiohead) or if they can evolve into sustainable business models.
All in all, Freeconomics promises to be a concept that we’ll have to spend thoughts and time over and over again in the future.
Final Burp: “Every economy that becomes digital, eventually becomes free” (C. Anderson)