[video keynote] Chris Anderson – Free
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This is a video (below) from the Media Evolution conference that took place in Sweden earlier this year. Based on his recent book Chris Anderson talked about the FREE. I liked different points in his presentation especially when he was talking about
- the 21st century economy not as inflationary (everything gets more expensive overtime) but deflationary (everything gets cheaper)
- Moore’s law as violation of Murphy’s law. Everything gets better all the time VS everything’s get worse overtime
He presents 4 forms of free:
- Cross-subsidies: The classic marketing trick, sell one product by giving away another.
- Media model: Advertiser pays the producer that offers the service to the consumer for free. Then the consumers can go back and buy the advertiser product.
- Freemium model: Free+premium. It’s the inversion of the free sample where you give away 1 cookie to then sell 99. With fermium you give away 99% to sell 1% because the marginal cost (the cost of making and distributing one more unit of service/product) is zero. So you use free as a form of marketing. You reach out for the largest possible audience and then some of those will convert to actual sales.
- Gift economy: Twitter, blogs, wikipedia entries, facebook pages, etc. people are not paid to create and release this free content. They do it for different reasons but largely to increasee self-celebrity, build a reputation, etc. They do it to build something of value, not necessary money.
Few things to keep in mind about the economic model that Chirs describes:
- The Internet is the most competitive market we have because the barriers to entry are zero and the marginal cost is zero.
- Everything digital wants to be free, so your products will be free or you will compete against someone that is going to make it free.
Does this mean that you won’t make money? No. Few lessons learned from the game industry… People pay for time-saving solutions, status, love/passion, and to minimize risk.
This is a 2,5 hours show. Chris presentation is 1 hour long but video goes on an additional 1,5 hour with an interesting discussion panel. Enjoy it!
Andrea
Author: Andrea Vascellari
Andrea Vascellari is the CEO of itive.net. All thoughts and opinions on this blog are his own and do not necessarily reflect those of his employer or clients; neither past or present. If you liked this post feel free to follow him on Twitter, Facebook, or subscribe to this blog.
Entire video of the keynote + panel discussion + show notes. Chris presents the 4 forms of ‘free’ and its economic model.
This comment was originally posted on FriendFeed
Entire video of the keynote + panel discussion + show notes. Chris presents the 4 forms of ‘free’ and its economic model.
This comment was originally posted on FriendFeed
It was a great and free
presentation!
Andrea
This comment was originally posted on Hessun Blogi
It sure was.
Very interesting topic.
This comment was originally posted on Hessun Blogi
Kirjoitat mielenkiintoisesta asiasta Hessu.
Luin hiljattain Chris Andersonin päivitetyn version Long Tail-kirjasta, nyt uudella nimellä “Longer Tail” joka on mielestäni hyvin mietitty kuvaus/teoria median saatavuudesta nykyaikana ja miten internet on vaikuttanut ihmisten ostokäyttäytymiseen.
Herran uusin laitos Free ei saa minulta varauksetonta hyväksyntää. Vaikkakin Anderson ei sano että kaiken tulee olla ilmaista niin silti minua hymyilyttää kirjaan läimäisty £12.79 hintalappu
Malcolm Gladwell on kirjoittanut kolumnissaan samasta:
http://www.newyorker.com/arts/critics/books/2009/07/06/090706crbo_books_gladwell
Hauskan sivujuonteen keskusteluun tuo The Timesin kirjoitus jossa kirjoittaja myötäilee Gladwellin ajatuksia. Timesin omistaa News Corp jonka omistaja Rupert Murdoch on kommentoinut erittäin kovasanaisesti sisällön ilmaisuutta internetissä. Tämä on tietysti pelkkä yhteensattuma…
http://timesonline.typepad.com/technology/2009/06/malcolm-gladwell-vs-chris-anderson-a-very-intellectual-bust-up.html
This comment was originally posted on Hessun Blogi