I have been talking about the economics of abundance literally from Day One of BloodhoundBlog:
In a subsistence culture, the work of the mind is precious and literally unsupportable. We are by now so rich that millions of people can create intellectual resources that they give away, in turn to be remarketed by others.
I was talking about phenomena like weblogging and open-source software, but, ironically enough, I was also talking about an article by Wired magazine editor Chris Anderson.
This week Anderson is back with another important article, this one called Free! Why $0.00 Is the Future of Business. He’s writing about the net.economy, and what he has to say is fascinating, even if I think he might be missing the bigger picture. He’s also writing in support of his new book, a for-pay product I don’t intend to pay for.
Anderson likens the idea of free razors, which we’ve also talked about, with the modern net model of using free web-based software to create massively-viral effects. Interestingly, he documents six broad categories of no-cost-to-the-user internet business models.
His thesis is that the plummeting cost of data-processing hardware, coupled with a software-cost-per-user that approaches zero, requires vendors of web-based information and services to find other ways to monetize their efforts. If one vendor won’t cut the price to zero, the next one will.
We’ve been talking about this much, too, also since the birth of BloodhoundBlog:
[T]he people most immediately affected are the ones who are currently paid a salary or wages based on the sale of information. Either the information is going to get much, much better — or the number of paychecks is going to get much, much smaller.
Stewart Brand said “information wants to be free”. This has intellectual property implications far beyond ordinary information. But with respect to that ordinary information — news, opinion, fiction, poetry, almost all music, etc. — the war is over. Hoarding lost. The challenge amidst this vast abundance is not getting people to pay for your information — but simply getting them to pay attention to it.
The daily newspaper has no hope whatever of nicking me for fifty cents. Read more




