Anderson - Free

Aus Leowiki

• "Free is full of apparent contradicitons: You can make money giving things away. There really 'is' a free lunch. Sometimes you get more than you pay for." (p. 4)
• "All the World's a Cross-subsidy" (p. 21, Herv. i. Orig.)
• "Free-to-air radio plus nominal royalties for artists created the disk jockey era and, in turn, the Top 40 phenomenon. Today these roaylties are calculated based on a formular involving time, reach, and type of station, but are low enough for radio stations to prosper. The irony was complete. Rather than undermining the music business, as ASCAP had feared, Free helped the music industry grow huge and profitable. A free inferior version of the music (lower quality, unpredictable availability) turned out to be great marketing for a paid superior version, and the artists' revenues shifted from performance to record royalties. Now Free offers the opportunity to switch back again, as free music serves as marketing for the growing concert business." (p 4%)
• "Humans are wired to understand scarcity better than abundance." (p. 50)
• "So from the consumer's perspective, there is a huge difference between cheap and free. Give a product away and it can go viral. Charge a single cent for it and you're in an entirely different business, one of clawing and scratching for every customer. The truth is that zero is one market and any other price is another." (p. 62)
• The example of Lindt truffles v. Hershey's Kisses (p. 63)
• "the imposition of a price, no matter how low, typically decreases participation, often radically." (p. 67)
• "The time it takes to avoid paying means "you're working for less than minimum wage,", (Steve Jobs) noted."
• "pirates haven't taken something you own, they have reproduced something you own. this is an important distinction, which boils down to the reality that you don't suffer a loss but rather a lesser gain." (p. 71)
• "too cheap to meter" changes the world: "computer processing power, digital storage, and bandwith." (p. 77)
• "Ideas are the ultimate abundance commidity" (p. 83)
• Steven Levy's hacker ethic, rule 3: "All information should be free." (p. 94); Stewart Brand on the issue: "On the one hand information wants to be expensive, because it's so valuable. The right information in the right place just changes your life. On the other hand, information wants to be free, because the cost of getting it out is getting lower and lower all the time. So you have these two fighting against each other." (p. 96); reformulated by Anderson: "Commodity information (everybody gets the same version) wants to be free. Customized information (you get something unique and meaningful to you) wants to be expensive. But even that's not quite right. After all, what is a Google search if not a unique and customized sort of the Web, tailored just for you to be a meaningful response to your query? So let's try again: Abundant infomation wants to be free. Scarce information wants to be expensive." (p. 97)
• "Marriage is a paradox: I can't live with her, and I can't live without her. Both statements are true. And the dynamic between those two statements is what keeps marriage interesting, among other things. Paradoxes are the opposite of contradictions. Contradictions shut themselves down, but paradoxes keep themselves going." (p. 99)
• Pub example: "It provides a place for community and conversation, but it doesn't charge for that. It just charges for the beer that lubricates it." (p. 100)
• "It's because they can do so cheaply at such massive scale (Craigslist users create more than 30 million classified listings each month, tens of thousands of times as much as the largest newspapers) that they're so successful. And yet Craigslist makes very little money, just a tiny fraction of what erased from the newspaper coffers. Where does the wealth go? To follow the money, you have to shift from a basic view of a market as a matching of two parties - byers and seller - to a broader sense of an ecosystem with many parties, only some of whom exchange cash directly. Given the size of Craigslist today (50 million users every month), it's easy to see how more money can change hands there than did in any newspaper classifieds section, leading to better supply/demand matching and economic outcomes for the participants, eventhough less money remains in the marketplace itself. The value in the classfieds market was simply transferred from the few to the many. Venture capitalists have a term for this use fo Free to shrink one industry while potentially opening up others: "creating a zero billion dollar business." Fred Wilson, a partner at Union Square Ventures, explains it like this: "It describes a business that enters a market, like classifieds or news, and by virtue of the amazing efficiency of its operation can rely on a fraction of the revnue that the market leaders need to operate profitable." (p. 129)
• Encarta case: "While Microsoft made $100 million it shrunk the market by over $600 million. For every dollar of revenue Microsoft made, it took away six dollars of revenue from their competitors. Every dollar of Microsoft's gain caused an asymmetrical amount of pain in the marketplace. They made money by shrinking the market." (p. 130)

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