• Follow Curiously Persistent on WordPress.com
  • About the blog

    This is the personal blog of Simon Kendrick and covers my interests in media, technology and popular culture. All opinions expressed are my own and may not be representative of past or present employers
  • Subscribe

  • Meta

The cost of giving it away

I am one of a declining number that likes to read a Sunday newspaper.

Recession notwithstanding, I am also one of those people that tends to struggle more in terms of time than money.

Therefore, I generally only have time to read one newspaper a week. The choice of newspaper is effectively zero-sum. I choose one newspaper; the others miss out.

I’ve deviated from that choice in recent weeks. Whereas I used to pick the Observer without fail, a lazy Sunday prompted me to give the Sunday Times a go.

And I enjoyed it. So much that I bought both newspapers again the following week. With time constraints restored, substantial amounts were left unread.

I therefore need to make a choice between the two titles.

And my choice is likely to be dictated by the quality of their websites. Both the Observer and Times offer the majority of their content online in an ad-supported free access model.

But rather than an excellent website causing me to buy the print edition, an excellent website may cause me to forego the print edition.

While print and online may complement, they also duplicate and cannibalise content.

If I am paying for a premium model, I want the greatest improvement in utility to justify that.

This example points to a problem with the Freenium model that I have.

It doesn’t work in perfect competition.

It works for companies like Flickr because Flickr stores my photos and logs my activity. Utility and the cost of switching increase the more I participate.

Newspapers don’t reward relationships (aside from getting the answer to the previous days crossword). So in each transaction, the additional utility in the premium model needs to be justified both against the free version and the competition.

Where (premium, competitive) newspapers are of equal quality, hikes in utility are dictated by the quality of the (free) website.

An inferior website equals a greater hike.

And so the loser in the pitch for my pocket may be that which has invested the most in their website.

Does this mean newspapers need to sabotage their websites in order to increase the value of their premium products? Such as bringing back walled gardens or keeping the best content offline? Henry Blodget thinks so.

Me? Newspapers aren’t my forte so I will resist the urge to speculate. But it raises an interesting question about their ongoing viability in a converged world.

sk

Image credit: http://www.flickr.com/photos/flavio_ferrari/

Reblog this post [with Zemanta]

Links – 1st February 2009

Part 2 of the Good Stuff, following on from links yesterday to top articles on insights, marketing and advertising, online video and music.

Social media

I haven’t yet read it but I’m sure it is brilliant: danah boyd’s PhD dissertation

The Vitrue top 100 social media brands of 2008 (with methodology included)

Charles Frith provides an excellent case study of how brands shouldn’t engage with social media. Whether the person was officially representing Miller or not, he got pwned.

A Wired journalist experiments with various geo-aware applications and finds out that they are not all that they are cracked up to be

Mozilla have proposed a free, crowd-sourced usability tool which sounds, from this at least,  fantastic

Technology and the internet

One one hand, Kevin Kelly argues that ownership may soon be a thing of the past, and that access is far more important. Bodes well for tools such as Spotify.

But on the other, Jason Scott argues against the Cloud, as it can’t be trusted to safeguard your “possessions”

John Willshire lists several free tools that can be very useful in tracking online consumer behaviour

Discover Magazine offers a counter-argument to Nicholas Carr’s Atlantic article. Through outsourcing the effort required for recall, Google can in fact make us smarter. Not sure I necessarily buy this, but interesting nonetheless

Business and ideas

A great interview with Nassim Nicholas Taleb, author of the Black Swan, in the (UK) Times

Henry Blodget’s plan to fix the New York Times includes cutting costs by 40%, raising the price of the print edition and – controversially – reconstructing a walled garden for premium content

John Willshire (again) live-blogged the recent PSFK ideas salon in London, and it is well worth a read

Copyblogger has six ways to get people to say yes

A lovely story of a designer recounting his experiences with notebooks. I’ve recently started using a notebook for more than transitional note-taking, but it remains to be seen whether anything useful will come of it

My Favourite Business Book – crowdsourced opinion

And, as always, I’ve been posting slightly more miscellaneous links to my Tumblr blog, which in theory now has comments enabled through Disqus.

sk

Reblog this post [with Zemanta]