No Free Lunch
The future of zero pricing
In "Free: The Future of a Radical Price," Chris Anderson, the editor of Wired magazine and the author of "The Long Tail," discusses the rise of free business models. The underlying economics of digital services make zero pricing far more widespread than in the analog world. Free business models, whether for digital products or tangible goods, are based on cross subsidy. The "freemium" model -- an increasingly popular business model online -- appears to offer the elusive free lunch. Many millions of Skype users, for instance, making voice and video calls over the Internet, pay nothing at all, subsidized by a smaller group of customers who pay for additional functionality. The free service is a loss leader (and cheap marketing) for premium paid services.
More>>
The future of zero pricing
In "Free: The Future of a Radical Price," Chris Anderson, the editor of Wired magazine and the author of "The Long Tail," discusses the rise of free business models. The underlying economics of digital services make zero pricing far more widespread than in the analog world. Free business models, whether for digital products or tangible goods, are based on cross subsidy. The "freemium" model -- an increasingly popular business model online -- appears to offer the elusive free lunch. Many millions of Skype users, for instance, making voice and video calls over the Internet, pay nothing at all, subsidized by a smaller group of customers who pay for additional functionality. The free service is a loss leader (and cheap marketing) for premium paid services.
More>>
No comments:
Post a Comment