Chris Anderson May 5
- 1. FREE (Or: How I stopped worrying and learned to love $0.00) Chris Anderson, Wired
- 2. What is “free”? “ Liber” = freedom
- 3. “ Gratis” = zero price (contraction of gratiis "for thanks," hence "without recompense”)
- 4. “ Electricity too cheap to meter.”
- 6. What happens when things get free?
- 7. “ Waste is Good”
- 8. Alan Kay, Xerox PARC (1972)
- 11. “ Waste Storage”
- 13. Cost to stream a movie: $0.06
- 14. 20 th Century: “ Atoms Economy ” Things get more expensive Free = direct subsidy “ No such thing as a free lunch” 21 st Century: “ Bits Economy ” Things get cheaper Free = indirect subsidy “ The best things in life are free”
- 15. Free #1: A marketing trick
- 16. Free #2: Ad supported
- 17. Free #3: Freemium Options: Time limited Feature limited Seat limited Customer limited
- 18. Free #4: Gift economy
- 19. Econ 101(Bertrand) “ In a competitive market price falls to the marginal cost”
- 20. Round down! If the unitary cost of something is approaching zero, treat it as zero and sell something else.
- 21. People will pay to save time People will pay to lower risk People will pay for things they love People will pay for status People will pay if you make them (once they’re hooked) Five Free Lessons From Games
- 22. Competing with Free: Microsoft 1970s:
- 23. Competing with Free 1980s:
- 24. Competing with Free 1990s:
- 25. Competing with Free 2000s:
- 26. If you can’t beat them, join them
- 27. Free’s hard: needs an upgrade path
- 28. But the trend line is clear
- 29. Whatever business you’re in, sooner or later you’re going to have to compete with free . What’s your plan?