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In a digital world where everything seems free, how will anyone make money?

Article Author
Scott Canon
Publish Date
July 24, 2009
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First, a little confession.

While this story pretends to be about things becoming free, that’s only in the sense of free samples; buy one, get one free; bare bones for free in hopes of selling the deluxe version; free but with advertising. You know the drill.

But now free is the new black — chic, essential, even sexy.

A few years into this young century, every mouse click makes clearer that some things will be free whether the folks who produce them want to give them away or not.

Music. Software. Books. Or, for instance, this article (at least on the Web).

Some marketplace analysts — most prominently Chris Anderson in his latest book, “Free: The Future of a Radical Price” — suggest that even as digital technology and the Internet shrink the price of many forms of work to free, free can also offer a new way to turn a buck.

“People are making lots of money charging nothing. Not nothing for everything, but nothing for enough that we have essentially created an economy as big as a good-sized country around the concept of $0.00,” writes Anderson, the editor of Wired magazine.

Kansas City Star

“It’s driven by an extraordinary new ability to lower the costs of goods and services close to zero,” he writes. (The digital version of his book is free. The bound version will set you back $26.99.) “This new form of free is based on the economics of bits, not atoms. … The bits economy is deflationary.”

 

Comments

I keep seeing the complaint

I keep seeing the complaint that it's so hard to monetize the web, but looking at my credit card statement, I'm paying for more and more online content every year.

Subscriptions to questia.com and newspaperarchive.com; charges for stock photos and an annual charge for a clip art archive. I'm almost embarrassed to admit how much I've spent over the past five years for ebooks -- first for my palm pda and now for my kindle -- and audiobooks. My iTunes is filled up with hundreds of dollars of paid-for music, and I'm not even a huge music lover.

If nobody wants to pay for stuff from the web, then I am the hugest anomaly in cyberspace. But somehow I doubt that.

Maybe magazines need to figure out what they've got that people will pay for, or how to repurpose what they've got into something that people will pay for, rather than assuming that it can't be done.

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