The internet revolution largely has been built so far on three pillars -
I remember till some time back there used to be this whole hype around how "internet" and digital medium will make paid models of "Real media" redundant and news papers will die / music industry will cringe and everything will be "ad-supported". Did that happen? To an extent it did but only till a tipping point where they realised advertisements cant support apps which require "customization" once u achieve a certain scale i.e. no. of users or GB of data transfer. So FREE was more of a luring element and NOT a phenomenon to Stay. Its becoming increasingly time consuming and difficult for an average netizen to download songs/ movies from internet for FREE- Yes the geeks or Torrents still exist but you need to be interested in doing a lot of R&D or be aware of virus threats and NOT be behind firewalls to do this. Wouldnt it be easier to download the same for 0.99 cents from itunes?
The Internet world is now moving to "Monetization" by starting to charge for "good" content. The new race is not to bring out as many apps for free so as to drive eyeballs and then earn advt. but rather the race (and long term winners) will be content aggregators who bring apps relevant enough for netizens to feel its utility and hence pay a small sum for it -- the money being made in volumes. So effectively its become a volume game based on "Quality content" with break-even points at millions of downloads. Look around you and all the companies you feel confident about in the internet world (read have black bottom-line) are the ones leveraging this model. E.g. The gaming companies, Amazon Kindle with its e-books, iTunes stores, GPS applications, Tutoring apps and even good porn sites :-)
I know there will be 2 questions asked - What about Google and what about user generated content?
OK firstly Google -- the Holy Grail and originator of FREE --
Today, Google announced a new program to let publishers limit the amount of paid content Google News users can access for free. And Rupert Murdoch endorsed Microsoft’s recently reported efforts to encourage publishers to “de-list” their content from Google through direct payments or other types of beneficial treatment on Bing.
Both these are indicators of Google also bending to the needs of Monetization. To me Google is the gatekeeper who makes money when the Lords behind the gates make money. So all "enabling tools" required to reach the right content/ apps will remain FREE and is googles domains e.g. Maps, mail, Search etc. Also Google will be a key element in enabling "Preview and Test" for most offerings, but once it gets u to the Pearly gates of content, entry depends on the ability of your wallet to spend. This is a marked diversion from prophecy some years back when Google was to emerge as the killer of Real world media and content.
Second, User generated content -- the argument there is simple - I wouldnt mind watching a Street play for FREE, if its crappy i can walk home but if i want to watch a quality play in a limited time i will go to Broadway based on reviews and buy my tickets. User generated content is for Leisurely wanting to experiment and so has / will continue to have its own space in this picture. It will always remain as a compliment to the real content - it will have its value as an Opinion medium via Social media, Gossip provider , news breaker but not analyzer, non-utility but interesting data provider, avenue provider to entrepreneurs to help them evolve as the next "money generating" company -- in effect the Street play platform to an artist aspiring to perform in Broadway.
So to me the war of FREE has ended and the war of "Relevant content" has begun - the war of Comcast buying NBC, the war of SONY Reader vs Kindle vying for rights to right books, the war of BING vs Google --- because remember behind the behemoth of content on internet are real people needing real salaries to eat real FOOD (& real cosmetics to look beautiful ;-))
- Customize,
- Information at finger tips and
- Free
I remember till some time back there used to be this whole hype around how "internet" and digital medium will make paid models of "Real media" redundant and news papers will die / music industry will cringe and everything will be "ad-supported". Did that happen? To an extent it did but only till a tipping point where they realised advertisements cant support apps which require "customization" once u achieve a certain scale i.e. no. of users or GB of data transfer. So FREE was more of a luring element and NOT a phenomenon to Stay. Its becoming increasingly time consuming and difficult for an average netizen to download songs/ movies from internet for FREE- Yes the geeks or Torrents still exist but you need to be interested in doing a lot of R&D or be aware of virus threats and NOT be behind firewalls to do this. Wouldnt it be easier to download the same for 0.99 cents from itunes?
The Internet world is now moving to "Monetization" by starting to charge for "good" content. The new race is not to bring out as many apps for free so as to drive eyeballs and then earn advt. but rather the race (and long term winners) will be content aggregators who bring apps relevant enough for netizens to feel its utility and hence pay a small sum for it -- the money being made in volumes. So effectively its become a volume game based on "Quality content" with break-even points at millions of downloads. Look around you and all the companies you feel confident about in the internet world (read have black bottom-line) are the ones leveraging this model. E.g. The gaming companies, Amazon Kindle with its e-books, iTunes stores, GPS applications, Tutoring apps and even good porn sites :-)
I know there will be 2 questions asked - What about Google and what about user generated content?
OK firstly Google -- the Holy Grail and originator of FREE --
Today, Google announced a new program to let publishers limit the amount of paid content Google News users can access for free. And Rupert Murdoch endorsed Microsoft’s recently reported efforts to encourage publishers to “de-list” their content from Google through direct payments or other types of beneficial treatment on Bing.
Both these are indicators of Google also bending to the needs of Monetization. To me Google is the gatekeeper who makes money when the Lords behind the gates make money. So all "enabling tools" required to reach the right content/ apps will remain FREE and is googles domains e.g. Maps, mail, Search etc. Also Google will be a key element in enabling "Preview and Test" for most offerings, but once it gets u to the Pearly gates of content, entry depends on the ability of your wallet to spend. This is a marked diversion from prophecy some years back when Google was to emerge as the killer of Real world media and content.
Second, User generated content -- the argument there is simple - I wouldnt mind watching a Street play for FREE, if its crappy i can walk home but if i want to watch a quality play in a limited time i will go to Broadway based on reviews and buy my tickets. User generated content is for Leisurely wanting to experiment and so has / will continue to have its own space in this picture. It will always remain as a compliment to the real content - it will have its value as an Opinion medium via Social media, Gossip provider , news breaker but not analyzer, non-utility but interesting data provider, avenue provider to entrepreneurs to help them evolve as the next "money generating" company -- in effect the Street play platform to an artist aspiring to perform in Broadway.
So to me the war of FREE has ended and the war of "Relevant content" has begun - the war of Comcast buying NBC, the war of SONY Reader vs Kindle vying for rights to right books, the war of BING vs Google --- because remember behind the behemoth of content on internet are real people needing real salaries to eat real FOOD (& real cosmetics to look beautiful ;-))
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2 comments:
and the consultants agree :)
http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-35297
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