Giving things away for free – a business model with no future?

http://www.ft.com/cms/s/0/0bb39a38-665f-11de-a034-00144feabdc0.html

I am sure that issues from the above linked article could have some profound implications when applied to a “public goods” model.  Any takers to speculate on this?

In the meantime, back to the link… the item is written from the perspective of Silicon Valley’s digital economy, the author explores the effect of “free” and the “free economy” (in a context mainly connected to open-source and Internet freebies.)

“There is no question that the internet encourages companies to offer their products free but it has also encouraged a lot of them to burn through their capital and collapse. That is a new economic model of sorts but it is hardly salutary.”

This sentiment was echoed by Murdoch earlier in the year when he strongly hinted that it was the beginning of the end for free online news, see
http://www.guardian.co.uk/media/2009/may/07/rupert-murdoch-charging-websites

It seems very likely we about to embark on changing times in the way (online) business operates.  And this in turn, as with the case of MP3 market, (see earlier blog post) could lead to new legal challenges.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s