September 04, 2008

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Future Revenues of Creators: Hal Varian: 14 Free business models (via Chris Anderson) Further to my previous post on The Future Revenues of Content, Chris Anderson's Longtail blog has a timely post that is a perfect fit: Hal Varian: 14 Free business models. A lot of this fits very well with Kevin Kelly's writings on his Technium blog, too - all of them are a must-read if you are in the content business, imho. So, citing from Chris who quotes Hal's paper (edits for length and some high-lights are mine): Says Hal: "Most information is born digital and that digital information is typically very easy to copy and distribute, it is conceivable that copyright laws may become almost impossible to enforce. Are there ways for sellers to support themselves in such an environment? It is worth considering some of the options. Here is a brief list of business models that might work in a world without effective copyright. Make original cheaper than copy. This is basically the limit pricing model described earlier. If there is a transaction cost for a copy-a direct cost of copying, an inconvenience cost, or the copy is inferior to the original in some way-then the seller can set the price low enough that it is not attractive to copy. (Note by Gerd: this is working very well on Asia, already, particularly in Thailand. Once a ratio of 2:1 is reached, i.e. the legal version [of a physical product] is only 2x what the pirated version is, then people are ok with buying the legal version - also because they can be assured the quality is there, and it's not a fake. I do think that this approach will require a dual strategy of selling some copies in this way while getting a lot more 'Attention Revenues" going, as well, since it will be hard to make any reasonable...

Gerd Leonhard

Keynote Speaker, Think-Tank Leader, Futurist, Author & Strategist, Idea Curator, some say Iconoclast | Heretic, CEO TheFuturesAgency, Visiting Prof FDC Brazil, Green Futurist

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