This document discusses Chris Anderson's concept of "free" as it relates to digital goods and services. It outlines four business models for "free": direct cross-subsidies, three-party markets, freemium, and non-monetary markets. The models are shifting from scarcity to abundance as digital goods can be reproduced nearly infinitely at little to no cost. While companies may struggle to profit from free goods directly, the models find ways to do so through other revenue streams or non-monetary exchanges. Ultimately, businesses will be forced to compete with free in many industries and figure out new management and decision-making approaches as a result.
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1. Free: What does that really mean?
Learon Dalby
Senior VP Business Solutions
2/25/2013
NSGIC 2013 MIDYEAR MEETING
February 24 - 28, 2013
Loews Annapolis Hotel
126 West Street, Annapolis, MD 21401
2. iTunes: Free
YouTube: Anderson overview
Amazon: $6.40
https://summaries.com/index/Free.pdf
CHRIS ANDERSON is the editor-in-chief of Wired magazine
3. Free: The Future of a Radical Price
The new form of Free is based
on the economics of bits, not atoms.
4. Free: The Future of a Radical Price
The simple and undeniable fact is free is an
attractive price point. It will be the basis for many a
business model in the future because the
abundance of digital markets is a given, not an
option.
5. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://files.myopera.com/jdlien/blog/cross_subsidy.png
6. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://files.myopera.com/jdlien/blog/cross_subsidy.png
7. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
8. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
9. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
10. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
11. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://files.myopera.com/jdlien/blog/non-monetary.png
12. History Free: The Future of a Radical Price
Four basic business models of Free
Direct cross-subsidies
Three-party markets
Freemium
Non-monetary markets
http://files.myopera.com/jdlien/blog/non-monetary.png
13. Freeconomics Free: The Future of a Radical Price
Scarcity Abundance
You have to get permission Rules Anything goes
We know whats best Social Model You know whats best
Business model Profit Figure it out as we go
Top-down Decision Process Bottom-up
Command and control Management Out of control
14. Free: The Future of a Radical Price
If you make a digital product, realize sooner or
later its going to be free
You cant stop free
Understand that sooner or later youre going to
be forced to compete with free in your industry
Dont forget free inevitably ends up making
some things more valuable
https://summaries.com/index/Free.pdf