Publishers Show Yet Again How To Make Money By Reducing The Price To Zero

One of the slogans of the copyright industries is that you can't make money from giving things away. Unfortunately for them, examples just keep coming up showing that's simply not true. Techdirt wrote about the interesting case of the London Evening Standard back in 2009, shortly after its new owner decided to turn it from a (loss-making) paid-for newspaper, into one that was given away. So, three years later, how did that work out?: 

On Techdirt.

Now That's What I call (21st-Century) Music

Thanks to the good offices of @nzJayZee, I have just been sent to this musician's rather heartwarming Web site, wherein he says the following:

There are lots of ways to get music from me, whether you’re a cyborg from the future with an iPod in your skull, or a little old granny in Idaho with nothing but an antique “CD Player.” Lots of it is freely available depending on how technical you are – you can get all of it for free if you really try. But please remember I do make a living this way, so if you like what you hear I’d certainly appreciate you throwing a little payment or donation my way. If you can’t afford it, for goodness sake please send copies of everything to all of your friends.

Wow - kudos to Jonathon Coulton for being such a wonderful example of what it means to be a musician in the 21st century.  Long may he prosper.

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Spotify: Make Money with Analogue Scarcity

This isn't another post about Spotify: it's a perceptive comment made by the company's CEO during an interview:

Q: We’ve heard services like Spotify people say “oh no we’re not going to buy music any more”. The idea of geting people to play a monthly fee, that seems promising. Why would someone buy something?

A: I think we’re going that route. But we find that music I really love, I tend to want to buy it. Not necessarily a plastic disk, but a special edition for an artist I really like, I’m more than happy to pay $100 for a box set with a t-shirt in it, liner notes. Another person may be willing to pay for a live edition with extended tracks. Or pay for a live concert experience. The reality of the music industry today is that there isn’t one biz model. It’s about figuring out how to use downloads, streaming, promotion, ticketing, all these things. I don’t think streaming music is stream.. with Spotify people label us ‘free’ music. But people pay, either with time (adverts, which are targeting), or actually paying for the service.

Of course, this is exactly what many of us have been saying for a while, and it's good that someone behind one of the more interesting new offerings seems to get this.

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Not That Microsoft is Desperate, or Anything...

From the You Can't Even Give It Away department: the Ultimate List of Free Windows Software from Microsoft - 150 items. (Via @Jack Schofield.)

The Value of Nothing

One of those joining this blog in pointing out the power of pricing at zero is Chris Anderson. His next book is called simply "Free", and he's published a convenient synopsis in the form of an article in his personal publishing vehicle, Wired:

It took decades to shake off the assumption that computing was supposed to be rationed for the few, and we're only now starting to liberate bandwidth and storage from the same poverty of imagination. But a generation raised on the free Web is coming of age, and they will find entirely new ways to embrace waste, transforming the world in the process.

Judging by the article, the book will be highly anecdotal - no bad thing for a populist tome. My only concern is that the emphasis will be too much on the "free as in beer" side, neglecting the fact that the "free as in freedom" aspect is actually even more important.

Free Thinking

I have been accused of being "sniffy" about Kevin Kelly's meditation on eight new scarcities created by free; well, be that as it may. However, I was much more impressed by an earlier essay, pointed out by Chris Anderson, called "Technology Wants to be Free", which seems much meatier to me. It contains lots of concrete examples of how the cost of commodities inevitably tend to zero, and concludes with this important thought:

The odd thing about free technology is that the “free as in beer” part is actually a distraction. As I have argued elsewhere (see my 2002 New York Times Magazine article on the future of music for example) the great attraction of “free” music is only partially that it does not cost anything. The chief importance of free music (and other free things) is held in the second English meaning of the word: free as in “freedom.” Free music is more than piracy because the freedom in the free digital downloads suddenly allowed music lovers to do all kinds of things with this music that they had longed to do but were unable to do before things were “free.” The “free” in digital music meant the audience could unbundled it from albums, sample it, create their own playlists, embed it, share it with love, bend it, graph it in colors, twist it, mash it, carry it, squeeze it, and enliven it with new ideas. The free-ization made it liquid and ‘free” to interact with other media. In the context of this freedom, the questionable legality of its free-ness was secondary. It didn’t really matter because music had been liberated by the free, almost made into a new media.

Kevin Kelly Joins the Club

Nothing new here for readers of this blog, but good to see someone else saying it:

the previous round of wealth in this economy was built on selling precious copies, so the free flow of free copies tends to undermine the established order. If reproductions of our best efforts are free, how can we keep going? To put it simply, how does one make money selling free copies?

I have an answer. The simplest way I can put it is thus:

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Etc.

The Triumph of Free (as in Beer)

With The New York Times and The Wall Street Journal said to be looking at removing the “pay wall” around their online content, and others – including CNN, Google and AOL – having already done so, one question springs to mind: Are we seeing the death of paid content online, and the return of free as a business model?

Yup - at least, free as in beer: now we need to work on the free as in freedom part.