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Forbes -- Can You Use Big Data? The Litmus Test by Venkatesh Rao

'I have concluded that there are three basic conditions you need to meet to take advantage of Big Data: #The information content of whatever your company makes or sells is above a certain critical threshold; #Your workforce and operations can be instrumented to create enough of a data deluge that you need Big Data technology; #Your senior management can learn how to work with a larger strategy canvas. -- The design of your business model (its structure) follows your strategy (the core insight about an exploitable unfair advantage that you want to pursue). But the structure must also be expressed within the capabilities of the technology with which it is built. The architectural capabilities of the technology are the language within which your business model must be expressed. When the expressivity of a technology domain lags the creativity of the strategic thinking, strategy gets structurally constrained by technology. When technology leads creativity, the canvas expands, and those who notice the newly-breakable constraints are able to cause disruption. Exactly such a canvas expansion is happening right now. For information-intensive businesses operating with business models that can be cheaply instrumented to create and consume data deluges within feedback architectures, the scope for strategy has suddenly expanded. If you cannot paint a better picture on the expanded canvas, somebody else likely will. That’s why Big Data matters.'

data strategy businessmodels
11 weeks ago by adamcrowe

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Seth's Blog -- The game theory of discovery and the birth of the free-gap

'As we've made it easier for ideas to spread digitally, we've actually amplified the gap between free and paid. It turns out that there's a huge cohort that's just not going to pay for anything if they can possibly avoid it. As the free-only cohort grows, people start to feel foolish when they pay for something when the free substitute is easily available and perhaps more convenient. Think about that – buying things now makes some people feel foolish. This new default to free means that people with something to sell are going to have to push ever harder to invent things that can't possibly have a free substitute. Patronage, live events, membership, the benefits of connection – all of these things are outside the scope we used to associate with the creative business model, but that's changing, fast. ... Most ideas have never been something one could monetize.'

economics free digital intellectualproperty businessmodels from delicious
june 2011 by adamcrowe

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Business Insider -- DOWN ON THE (CONTENT) FARM: Here's Why I Would Never Invest In Demand Media

'Demand contracts with thousands of freelancers to produce hundreds of thousands of pieces of low-quality content, the topics for which are chosen according to their search value, most of which are driven by Google. Because Google’s algorithm weights prolific and constant content over quality content, Google’s algorithm places Demand content high on their search engine result pages. Google search results drive enormous amounts of traffic to Demand’s sites, which Google is then happy to monetize for a hefty split of ad revenue. So, Demand creates the content cheaply; Google then sends free traffic to those pages; and then Google sells ads to those same users. Arbitrage defined. The worse the content the cheaper it is for Demand to produce and the more likely a visitor to that content is to click on a Google AdSense link as that is often the most compelling thing on the page. Demand’s content threatens the quality of the user experience on Google.'

advertising content spam seo search storygraph businessmodels from delicious
november 2010 by adamcrowe

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W3i Blog -- Ngmoco’s $100M+ Valuation Is Just The Beginning For Freemium Mobile Apps

'Let’s assume that WeRule averages 800,000 active users for an entire year with no additional installs. This would lead to revenue of $11.7M per year and $4.68 per install. The average cost of a paid app ($2.98) is less than the revenue generated for a free install of WeRule. How does Ngmoco make so much money per user? Inside Social Games reported that Jason Oberfest, VP of Social Applications at Ngmoco, told them that they were earning 40% of their revenue from in-app virtual goods purchases and the rest from other revenue sources including brand and app-install advertising. Distimo reported in July that just 2% of iPhone apps leverage in-app purchasing. The freemium model is working for more than just games too. Distimo reported that a significant number of apps from a range of app categories are leveraging in-app purchases including top performers.'

businessmodels virtualgoods
september 2010 by adamcrowe

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Umair Haque / Bubblegeneration -- Five Reasons I Wouldn't Have Invested in Zynga

'#1. Product and Platform risk, #2. Market risk, #3. Business model risk #4. Deep risk, #5. Macro risk' -- Comment: Paul Sweeny: "If the product is free to use, you are the product. In such freemium models it's usually specific data you produce in your use that is useful to the premium user or third parties." -- The user is product

zynga businessmodels business strategy UmairHaque
september 2010 by adamcrowe

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TechCrunch -- Social Gaming Market Reaches Its Final Stage…and It’s Not Looking Pretty

'Outside of Facebook, Farmville simply can’t hold its own against games like Bejeweled and Scrabble when it comes to monetizing a casual audience... -- In the end, I believe that “social games” as we know them will be a forgotten internet fad, ultimately consumed by the already mature online market for downloadable and multiplayer games. The only NEW discoveries that remain will be the realization that social networking itself is a new kind of game play, social graphs are an extremely efficient way for games to market themselves and that microcurrency business models blended with advertising are a superior way to monetize online games in general. Everything else will be consumed by the highly competitive and established downloadable and multiplayer online game market. If some of the big names in social media gaming survive, it will be because they leveraged their abundant access to capital to transform themselves away from dependence on Facebook.'

gaming socialgaming casualgaming gaminggraph socialgraph socialnetworking virtualgoods businessmodels
september 2010 by adamcrowe

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paidContent -- The Popular New Monetization Model That Requires No Funding Or Advertising

'Prestige as it applies to social gaming is pretty simple: You play a game, advance levels in that game or accumulate goods, and then broadcast the advancement your social network. Prestige turns into real money in any one of several ways. Game players are granted some amount of free virtual currency at the start of play. That currency is used to purchase virtual goods or services that allow the player to advance levels. When the user runs out of currency, he/she can replenish it by paying for more currency with a credit card or PayPal account; by taking a survey; by taking a lead-generation offer like a Netflix (NSDQ: NFLX) trial subscription; or by watching videos (gWallet offers this). Other prestige approaches allow the person at the top of a leaderboard (“mayors” in FourSquare, for example) to get discounts at certain real-world establishments. Others don’t monetize prestige, but use it to drive other business goals like time spent on site, which leads to advertising dollars.'

socialmedia gaming gaminggraph engagement rewards loyalty businessmodels
september 2010 by adamcrowe

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Seth's Blog -- The secret of the Roush effect

'When Gerald Roush died in late May, he left behind the Ferrari Market Letter. This newsletter, which he started and ran, had nearly 5,000 subscribers, paying him $130 a year for a subscription. Do the math! It's a good living--even without a fancy website. The Roush effect involves extraordinary domain knowledge, a market small enough to understand and diligently earning the role of data middleman. The players in the market want there to be one clearinghouse, one authority who can connect the data, see the trends and publish the conventional wisdom. Just about every tribe needs a Gerald Roush. And in many markets, they can afford to pay someone like him very handsomely.'

business businessmodels data aggregation markets
september 2010 by adamcrowe

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YouTube -- TEDxBrussels: Michel Bauwens

"We are seeing the seeds of a new society within the old and this is what I call 'open everything'. Peer-production, peer-governance, and peer-property are the new modalities that are emerging from this open world." -- Models: #Commons (strong-ties, production), #Share (weak-ties, aggregation), #Crowdsourced (seek sustainable collaboration). -- Tensions: Institutions vs Communities -- Solutions: Community Charters (GPL, CC, etc) that embed the principles of peer production in cultural value systems.

economics networks markets communities collaboration businessmodels socialproduction peerproduction p2p resilience retribalization
may 2010 by adamcrowe

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UN Dispatch -- The Somali Pirates' Business Model

'To be eligible for employment as a pirate, a volunteer should already possess a firearm for use in the operation. For this ‘contribution’, he receives a ‘class A’ share of any profit. Pirates who provide a skiff or a heavier firearm, like an RPG or a general purpose machine gun, may be entitled to an additional A-share. The first pirate to board a vessel may also be entitled to an extra A-share. -- When ransom is received, fixed costs are the first to be paid out. These are typically: #Reimbursement of supplier(s) [food, drink, qaad, fresh clothes, cell phones, air time, crew care, etc] #Financier(s) and/or investor(s): 30% of the ransom #Local elders: 5 to 10 % of the ransom (anchoring rights) #Class B shares (approx. $15,000 each): militiamen, interpreters etc. The remaining sum — the profit — is divided between class-A shareholders.'

economics businessmodels piracy
march 2010 by adamcrowe

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Umair Haque -- The New Paradigm of Advantage

'The future of advantage: #Allocative. Google's advantage was built on allocating attention to content and ads better than its rivals. Google's real secret? Relevance, media's measure of how efficiently attention is allocated. #Creative. Apple... Creative advantage asks: is our strategic imagination 10x or 100x richer, faster, and deeper than our rivals? -- And the past: #Extractive. Over two decades, Microsoft has honed its extractive edge, coming up with cleverer and cleverer ways to extract profits from customers and suppliers. #Protective. Monsanto's made sure that farmers are locked in to Monsanto as tightly as possible. Protective advantage asks: are buyers and suppliers locked in to dealing with us, 10x or 100x more tightly than to rivals? -- These dimensions are mutually exclusive. The opportunity cost of protecting yesterday is creating tomorrow. The opportunity cost of extracting resources is allocating them in better ways.'

economics business businessmodels strategy innovation rentseeking hackersvsvectoralists UmairHaque rent
march 2010 by adamcrowe

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BBC -- The Virtual Revolution: The Cost of Free

'Aleks gives the lowdown on how, for better and for worse, commerce has colonised the web - and reveals how web users are paying for what appear to be 'free' sites and services in hidden ways. Aleks explores how web advertising is evolving further to become more targeted and relevant to individual consumers. Recommendation engines, pioneered by retailers such as Amazon, are also breaking down the barriers between commerce and consumer by marketing future purchases to us based on our previous choices. On the surface, the web appears to have brought about a revolution in convenience. But, as companies start to build up databases on our online habits and preferences, Aleks questions what this may mean for our notions of privacy and personal space in the 21st century.'

internet web advertising datamining businessmodels google intention attention identity sharecropping free surveillance panopticon privacy documentaries AlexKrotoski
february 2010 by adamcrowe

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Linux Journal -- EOF - The Google Exposure By Doc Searls

'Advertising is a bubble. If that's a true statement, Google is a bubble too. And if that's true, many of the goods we take for granted on the Web are at risk. [Advertising is] what pays for all the infrastructure Google is giving to the rest of us. As our dependency on Google verges on the absolute, this should be a concern. Think of advertising as oil and Google as one big emirate. What happens when the oil runs out? Maybe it already is. The free rides won't go on forever. There are better ways than advertising for demand and supply to find each other (including search, which is free), and more will be found. Google will be in the middle of that discovery process, no doubt. But it's an open question whether Google will make the same kind of money in a post-advertising marketplace. I'm betting they won't.' -- Click numbers down, attention limited, population limited, obvious ponzi is obvious, post-tech-deflation monopoly internet: all ur websitez are a tollbooth belong to us, etc

economics internet web google advertising attention ponzi businessmodels monopoly rentseeking rent
february 2010 by adamcrowe

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BuzzMachine -- Stop selling scarcity

'If you are selling a scarcity—an inventory—of any nonphysical goods today, stop, turn around, and start selling value—outcomes—instead. Or you’re screwed. Apply this rule to many enterprises: advertising, media, content, information, education, consultation, and to some extent, performance. Scarcity has no value. Results and efficiency do. -- Then again, people are spending big money—billions—for a virtual market with a virtual scarcity in virtual goods: pixels on a screen. It’s absurd, of course, that anyone can create a scarcity and market value for fictional food for fictional cows, but it’s making money. In this economy, I think we see both the dying gasp and a parody of scarcity.'

economics scarcity abundance businessmodels virtualgoods commodityfetishism
february 2010 by adamcrowe

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YouTube -- Danah Boyd, "Streams of Content, Limited Attention"

On information flow: "You have to help people reach that state of flow where they know they're making sense of the world around them." -- On attention streams: "The key will be to find ways in which content can be surfaced in context regardless of where it resides." -- On monetizing sociality (rent): "We've yet to find the digital equivalent of alcohol for the internet." -- http://www.danah.org/papers/talks/Web2Expo.html

information news storygraph flow socialmedia businessmodels networks rhizome curation context DanahBoyd
january 2010 by adamcrowe

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Gamasutra -- What Gamers Think About Microtransactions

'...microtransactions typically have low prices, and the discrete value saved on a single purchase, even at half price, is so small that it might not convince non-paying players to enter their credit card information. To remedy this effect, an investment model could be implemented, where the player invests in the in-game currency for a guaranteed return on investment. The investment scheme could be framed within the fiction, for example that a local king needs funds for an ongoing war and will pay back the amount in one month at 20 percent interest. ...the unavoidable attrition rate of players means that some will stop playing before spending all of their sunk, in-game wealth. This sum of unspent wealth is expected to be bigger than usual when players are enticed to sink larger sums into the game. In other words: Players are expected to have larger sums of money in the bank when they eventually quit.' -- '...respondents bought goods because of social obligations or peer pressure.'

gaming virtualworlds virtualgoods virtualmoney sunkcosts businessmodels micropayments socialobjects objects
december 2009 by adamcrowe

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New Rules for the New Economy -- 4: FOLLOW THE FREE

'Because they were free, indexes became ubiquitous. Their ubiquity quickly made them valuable (and their stockholders rich) and enabled many other web services to flourish.

economics free businessmodels aggregation gisting information
october 2009 by adamcrowe

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Gamasutra -- Generating Cash For Premium Flash

'...a few brave souls have made the leap to microtransactions and seem to be doing quite well, thank you. And they're predicting that microtransaction funding will enable them to afford longer development periods -- say six months instead of two -- and larger teams that will result in Flash games with more content, better graphics and sound, and deeper mechanics.'

gaming businessmodels micropayments
september 2009 by adamcrowe

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TechCrunch -- Chinese Social Networks ‘Virtually’ Out-Earn Facebook And MySpace: A Market Analysis

'Social networking apps can hit hyper-viral levels in China due to a higher tolerance of intrusive app invitations. It is not uncommon for apps to essentially force new users to invite people and perform tasks before being able to join their friends online. Once friends have joined they are required to interact much more with the apps and advertisements than on Western applications. While this model is not replicable for the US market, certain aspects of this strategy/cultural mindset are necessary if companies like Facebook or Myspace want to compete in China. -- Western companies cannot innovate in the same way due to institutional problems stemming from their own struggle for an identity and revenue. [Facebook] are a self-styled guru of dynamic human interaction. If they opened up their platform to become an apps store, their major revenue streams would put them into a pigeonhole, calling their $15 billion valuation into question.' -- Be specific.

facebook socialnetworking virtualworlds virtualgoods virtualmoney businessmodels gaming socialmedia socialgraph monetization advertising china behaviours guanxi
september 2009 by adamcrowe

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37signals -- The bar for success in our industry is too low

'It still blows me away that David’s talk at Startup School 2008 was met with such enthusiasm (I know David was surprised too). The talk was simple. Come up with a product, charge money for it, make more money than it costs to run it, and you turn a profit! This is the formula that’s been in place since business began. Yet in front of a group of new tech entrepreneurs it seemed like a revelation, a brand new story never told before. David said people were coming up to him in droves after the speech thanking him for opening their eyes. Who closed them?' -- CAN HAZ MUNETIZASHUN L8R PLOX?

economics web bubble credit malinvestment business entrepreneurship businessmodels attrition free attention ponzi greaterfool
september 2009 by adamcrowe

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FT.com -- Game plan keeps it simple (Miniclip)

'Miniclip is also taking equity in third-party games that it hosts on its site which it hopes will prove lucrative. Club Penguin, an online virtual world for children which was available through Miniclip, was recently purchased by Walt Disney for a possible $700m fee. Miniclip is currently building its own subscription-based games and exploring deals to license its games characters to toy companies. Mr Small says large games companies are taking notice. “We get calls from [companies such as] EA... Now we are on the phone talking about strategic deals.” It has also developed seven games for mobile phones and is excited about a new genre of “advergames” after working for companies including BP, Gillette and Unilever. “A lot of blue-chip companies have realised this is a fantastic way to develop their brand.”'

gaming businessmodels entertainment
september 2009 by adamcrowe

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Mashable -- Is Crowdfunding the Future of Journalism?

'Spot.us has four types of reporting, with costs and deadlines for fundraising and reporting tied to each. For example, one investigative pitch currently active on the site seeks to raise $6,000 to send freelance writer Lindsey Hoshaw to the Great Pacific Garbage Patch, a mass of plastic garbage in the Pacific Ocean that’s twice the size of Texas. -- Spot.us, pitches get funded before the reporting starts. Individual donors can contribute up to 20% of the cost. Only news organizations can donate more than 20% of a pitch. They can also fund up to 50% of the freelancer’s salary upfront, and Spot.us can work to raise the other 50%. If a news organization raises 50%, it can temporarily copyright the story until 51% is raised through community donations. If news organizations fund 100%, they get exclusive rights and donations are reimbursed, but all content is eventually available via a Creative Commons license.' -- Exploitable

journalism businessmodels micropayments crowdfunding production patronage
july 2009 by adamcrowe

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TechCrunch -- Twitter’s Internal Strategy Laid Bare: To Be “The Pulse Of The Planet”

'Already, Twitter made up “90% of the content” on Google Blog Search. As the minutes put it: “We are this product.” There was also talk of including microblog results on the main search page, which would be “the biggest change to google search in years.”'

twitter google businessmodels strategy realtime sentiment search extensionsofman centralnervoussystem
july 2009 by adamcrowe

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Techdirt -- Artificial Scarcity Is Subject To Massive Deflation

'Quoting Eric Reasons: "Every business model relying on intellectual property law (patent and copyright) is heading for massive deflation in our lifetimes. We've seen it with the music industry and newspapers already. The software industry is starting to feel it with the maturity of open source software, and the migration of applications to the cloud. Television, movies, and books are next. I've come to question the ability of copyright and patent law to foster innovation, but leaving that aside, the willingness of people to collaborate and share, and the tools provided for it on the internet, may render these laws obsolete. Why is deflation a better descriptor? Because as businesses whose product is reliant on intellectual property shrink due to Internet-based efficiencies, consumers are reaping the rewards of these efficiencies." -- ...when you're dealing with what I've been calling "infinite goods" you can have a multiplicative impact on the market.'

economics free abundance internet commons businessmodels intellectualproperty deflation hackersvsvectoralists #ubiquity
july 2009 by adamcrowe

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Scribd -- FREE by Chris Anderson (Full book)

'#Free 1: Simple cross-subsidy #Free 2: Ad-supported #Free 3: Freemium #Free 4: Gift economy -- #Reversible business models: In China, some doctors are paid monthly when their patients are healthy. If you are sick, it’s their fault, so you don’t have to pay that month. It’s their goal to get you healthy and keep you healthy so they can get paid. -- In Denmark, a gym offers a membership program where you pay nothing as long as you show up at least once a week. But miss a week and you have to pay full price for the month. The psychology is brilliant. When you go every week, you feel great about yourself and the gym. But eventually you’ll get busy and miss a week. You’ll pay, but you’ll blame yourself alone. Unlike the usual situation where you pay for a gym you’re not going to, your instinct is not to cancel your membership; instead it’s to redouble your commitment.' -- On the fallacy of consistent price elasticity: 'The truth is that zero is one market and any other price is another.'

economics prices free complements strategy businessmodels marketing selling psychology risk incentives communities participation scale asymmetry networkeffects peerproduction productnarratives information piracy hackersvsvectoralists abundance digital cognitivesurplus temes #processing #storage #bandwidth #ubiquity #specialization google ChrisAnderson books
july 2009 by adamcrowe

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Brand Republic -- Ridley Scott unveils ad-funded UGC venture

'Ridley Scott is launching a project called Purefold that will harness user-generated content, RSA directors, scriptwriters and online aggregators to create brand-funded premium quality online TV programmes. Described as an open licence cross-platform franchise, Purefold works by scanning social networking sites for online conversations across all social media. These conversations are collated and the most highly rated can be used by brands as the basis for storylines that are fleshed out and rewritten by professional scriptwriters. The scripts are then turned into five-minute, high-quality web-based programmes directed by RSA directors from around the world. Once online, consumers can become involved with developing the storyline through talking or blogging about it. The most talked-about stories will be kept and further developed while the least talked-about will then be discarded.'

storytelling fanon crowdsourcing content brandedcontent businessmodels RidleyScott purefold
june 2009 by adamcrowe

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Jude Gomila -- Mapping Out Your Web Startup

"Building on Dave McLure's article from almost 1 year ago, I have gone ahead and added in an extended viral engine view, more revenue options, retention methods and customer acquisition strategies."

serviceecologies businessmodels diagrams
may 2009 by adamcrowe

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Wired -- Mother Earth Mother Board by Neal Stephenson (1996)

"In which the hacker tourist ventures forth across the wide and wondrous meatspace of three continents, acquainting himself with the customs and dialects of the exotic Manhole Villagers of Thailand, the U-Turn Tunnelers of the Nile Delta, the Cable Nomads of Lan tao Island, the Slack Control Wizards of Chelmsford, the Subterranean Ex-Telegraphers of Cornwall, and other previously unknown and unchronicled folk; also, biographical sketches of the two long-dead Supreme Ninja Hacker Mage Lords of global telecommunications, and other material pertaining to the business and technology of Undersea Fiber-Optic Cables, as well as an account of the laying of the longest wire on Earth, which should not be without interest to the readers of Wired." -- What hath God wrought!

* history technology digital computing networks internet comunication asymmetry #bandwidth arbitrage businessmodels NealStephenson
may 2009 by adamcrowe

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New Statesman -- "We were so keen to believe that Web 2.0 would make the world fairer that we rejected all evidence to the contrary"

The "techno-utopian manifest destiny" of Wired magazine via MIT MediaLab pwnage: 'Negroponte was seeking a publicity vehicle for his “concept factory”, a novel business proposition spun out from the venerable Massachusetts Institute of Technology. Negroponte’s Media Lab didn’t trouble itself with boring engineering and scientific research – the empirical bedrock of technological innovation, which takes years to bear fruit. The Lab was designed to coax corporate sponsorship with attention-grabbing ideas. Few of the whimsical concepts from the Lab – furry alarm clocks that run away, “ambient furniture” – would ever be viable products, but they generated acres of newsprint. And the press coverage drew in the sponsorship. Negroponte sold the proposition that his whizz-kids knew the future, and if you, too, suspended disbelief, so could you. A new business had been created. Negroponte became [the magazine's] first investor, and his flagship guru. Wired magazine was born.' -- Content is kin!

criticism economics free businessmodels hype pr productplacement content wired NicholasNegroponte theadvertisedlife technoutopianism
may 2009 by adamcrowe

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Wired -- Secret of Googlenomics: Data-Fueled Recipe Brews Profitability

'Selling ads doesn't generate only profits; it also generates torrents of data about users' tastes and habits, data that Google then sifts and processes in order to predict future consumer behavior, find ways to improve its products, and sell more ads. This is the heart and soul of Googlenomics. It's a system of constant self-analysis: a data-fueled feedback loop that defines not only Google's future but the future of anyone who does business online. -- Wu calls Google "the barometer of the world." Indeed, studying the clicks is like looking through a window with a panoramic view of everything. You can see the change of seasons—clicks gravitating toward skiing and heavy clothes in winter, bikinis and sunscreen in summer—and you can track who's up and down in pop culture. Most of us remember news events from television or newspapers; Googlers recall them as spikes in their graphs. ...every bit of data, no matter how seemingly trivial, has potential value.'

* google search adwords auction markets businessmodels mutualism economics econometrics statistics modelling data datamining realitymining surveillance panopticon feedback #complexity #specialization simulacra mirrorworlds
may 2009 by adamcrowe

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The Economist -- Clock-watchers no more: The end of the billable hour

'On April 20th Coca-Cola said it would adopt a “value-based” compensation system for the advertisers that do work for its 400 brands. Rather than paying advertising agencies for hours worked, Coke will pay for results achieved. Assessing a campaign’s value is much harder. Coke, however, thinks it can do just that. Its new model guarantees to cover advertising agencies’ costs, plus a bonus of up to 30%. The bonus depends on a number of metrics, including the agency’s overall performance, and the sales and market share of the products being advertised. Coke insists that its aim is not to cut costs but to inspire creativity and efficiency. -- Ron Baker, author of “Pricing on Purpose”, a book on pricing strategies, thinks service agencies need to grasp that they sell ideas, not time, and that ideas should be generously compensated. Imagine, he says, if J.K. Rowling had been paid by the hour to write about Harry Potter.'

advertising marketing businessmodels measurement numbers equity
may 2009 by adamcrowe

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Guardian -- Clicks for tricks: Twitter's first brothel?

'Since "adult services" have previously managed to use other communications systems -- postal services, telephones, shop windows, email, the web, advertisements in tabloid newspapers -- this shouldn't come as a huge surprise, but brothel stories are probably good for raising your circulation (fnar fnar).' -- Yup. Sell the sizzle not the steak. See 'Big Sister' businessmodel: http://bit.ly/2c3cm

twitter cybersex sex businessmodels storytelling porn roleplay performance narrativeenvironments voyeurism selling experience
april 2009 by adamcrowe

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Guardian -- Cory Doctorow: Game developers find ways to make industry recession-proof

'Whether attained by coercion, social engineering, generosity or guilt, this arbitrage of the cash-rich and the time-rich is at the centre of many of the new business models emerging on the net. It's damned close to the GNU/Linux business model – get the OS for free, pay us (or some other group of geeks) if you can't be arsed to figure out how to make it work. This business model has a certain attractive stability to it, in that it relies on technology being in a constant, perpetual state of semi-brokenness, which is a fundamental characteristic of the information age, where constant change ensures constant chaos.'

economics time scarcity arbitrage businessmodels virtualworlds virtualgoods RMT trade thegamingofeverydaylife
april 2009 by adamcrowe

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Confusionism -- The venus project: A less risky resource based economy

"Piratemyfilm.com and other things to follow are the beginning of markets in which we remove the risk from the development of a product and by removing the risk we enable people to create things people ultimately want and need. I guess another good model is pre-buying tickets for events. Inherent in this model is the lack of marketing, we move from demanding people purchase post creation(fear), to asking them to demand pre-creation(security). This truly topsy turvy business. Ultimatey, we have removed finance from the equation and replaced it with Mynance. Which is essentially micro-financing the development, whilst ultra mitigating the risk."

economics businessmodels investing risk markets creation procreation
april 2009 by adamcrowe

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Cooperation Commons -- When Push comes To Pull: The New Economy and Culture of Networking Technology

'#We are living in an epochal period of transition bridging two very different types of economies and cultures. We are transitioning from a "push" economy: that tries to anticipate consumer demand, and then creates a standardized product, and "pushes the product into the market and culture, using standardized distribution channels and marketing. We are transitioning to a "pull" economy: open and flexible production platforms that use network technologies to coordinate many different entities from disparate regions. "Pull" economies produce customized products and services that serve localized needs (demand-driven), usually in a rapid manner.' -- Pull

economics networks markets communities commons symbiosis businessmodels
april 2009 by adamcrowe

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Umair Haque -- Why Ideals are the New Business Models

"Forget business models. Focus on ideals. Reconceiving value creation depends on new ideals. Ideals shape what we wish to achieve in the first place: freedom, peace, fairness, justice - all are ideals vastly more powerful than mere business models. That's because they are what ensure the value we are creating is authentic, deep, meaningful value - not just the shabby, threadbare illusion of value. ...there is nothing more revolutionary than an ideal."

economics businessmodels idealism value ethics UmairHaque
march 2009 by adamcrowe

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BuzzMachine -- The Great Restructuring

'... it’s hard to build a business model anymore out of screwing people - since when you do, we the screwed can rise up and be heard and fight back and make evil too expensive. Our interconnectedness is also what made the complex derivatives - the toxic assets - that triggered the financial crisis possible - but that is all the more reason why we will demand transparency, our best antidote to evil. That will change how business is run in fundamental ways.

economics markets networks communities strategy innovation transparency sharing businessmodels serviceecologies UmairHaque via:damiano
march 2009 by adamcrowe

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Quarter To Three Forums -- WaPo article on 4chan/the internet

Ben Sones: "You do have to feel sort of sorry for [moot], but honestly, he's just not thinking creatively enough. I mean, ad impressions? Really? Here's my 4chan business model: two Paypal purchase buttons on the front page. #1. For $10, you can buy a voucher that lets you issue a single, one-day banning of any one user. #2. For $20, you can buy a "get out of jail free" voucher that allows you to nullify a banning. #3. Profit!

4chan memes internet culture communities griefing monetization businessmodels publishing via:waxy nsfw
february 2009 by adamcrowe

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The Atlantic -- The Future Is Cheese

"...it’s difficult for a media consumer to care enough about any one thing to stick with it—and for a network trying to build allegiance to a brand, convincing anyone that what you’re showing matters becomes almost impossible. The only thing network television can uniquely offer us non-digitally-optimized saps and dipshits is the promise of immediacy. Leno’s content—like that of Jon Stewart and Stephen Colbert, the breakout stars of the past few years—is news-driven, hypertimely, and ultimately disposable, insofar as it loses almost all its value within 24 hours. ...viewers will (I think, and hope) happily continue to pay for quality. Those who don’t will get what they don’t pay for." -- The book was better.

storytelling news gossip media distribution disintermediation entertainment tv businessmodels attention continuouspartialattention literaryculturevsoralculture #bandwidth #ubiquity television
february 2009 by adamcrowe

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Daytona Sessions -- Umair Haque: Constructive Capitalism (Video)

"#outcomes, not incomes, #connections, not transactions #people, not product #creativity, not productivity" -- "To create a better economy we have to create better economic meanings." -- More: 'Umair Haque -- The Smart Growth Manifesto' - http://tinyurl.com/aa5wwj

economics businessmodels institutions ethics meaning purpose value growth UmairHaque "capitalism"
february 2009 by adamcrowe

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Umair Haque -- The Smart Growth Manifesto

"20th century capitalism is eating itself... we have reached the boundaries of a kind of growth. Tomorrow's growth won't come from a person, place, or technology - but from understanding why yesterday's growth has failed. The same growth models applied to new people, places, and technologies will simply result in the same crises, over and over again. We have to reboot growth: the problem is not what is growing versus what is not, but how we grow. Here are the four pillars of smart growth - for economies, communities, and corporations: #1. Outcomes, not income: Are people healthier, fitter, smarter, happier? #2. Connections, not transactions: Smart growth seeks to amplify connection and community -- because the goal isn't just to trade, but to co-create and collaborate. #3. People, not product #4. Creativity, not productivity: How many new industries, markets, categories, and segments an economy can consistently create. Smart growth is creative -- not merely productive" -- A classic.

* economics business businessmodels investment growth change manifesto career UmairHaque "capitalism"
january 2009 by adamcrowe

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Umair Haque -- Five Problems Venture Capitalists Should Have Solved (But Didn't)

"#Reinventing communications. Venture investors poured tons of cash into media and entertainment over the last half-decade. But they did so in a perversely risk-averse way: they made investments dependent on 20th century advertising and communications, instead of investments focused on reinventing it. #Business models for public goods. Here's the paradox of the digital economy: digital goods are also public goods. So how do we capture value from them? It's a tough problem - but most venture funds haven't even tried most of the emerging solutions (here are some: turn goods into services, amplify scarcity, and democratize pricing). What does it say whena band - Radiohead - is better able to break new ground in developing business models for public goods than venture investors?"

economics businessmodels investment innovation markets networks communities socialobjects peerproduction UmairHaque
january 2009 by adamcrowe

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YouTube -- Lessig / Colbert Remix Interview
creativecommons remix culture share communities free businessmodels
january 2009 by adamcrowe

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Fast Company -- Seth MacFarlane’s $2 Billion Family Guy Empire

'MacFarlane describes as edgier versions of New Yorker cartoons come to life. Running from 30 seconds to just over two minutes, the shorts are sponsored by advertisers and noteworthy for a host of reasons. For fans, they are MacFarlane's first non-TV venture and so exist outside the reach of censors and network suits and introduce a universe of entirely new characters. For the entertainment industry, they mark the first experiments with a bold new method of content distribution (and the entry of the beast Google into its world). This purportedly unsophisticated hack comic now finds himself, in some ways by accident, at the intersection of advertising, television, and the Web -- all of which are blurring together. MRC provides the funding and sells the ad partnerships, MacFarlane provides the content, and Google serves as distribution outlet, providing the "broadcast" via its AdSense network.'

google storytelling transmedia entertainment content distribution convergence brandedcontent businessmodels SethMacFarlane
january 2009 by adamcrowe

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Umair Haque -- A User's Guide to 21st Century Economics

"Here are five questions every decision maker should kick off 2009 by asking: #What is the role of marketing in a world where consumption must slow? #What is the role of distribution in a world where consumption, savings, and investment will accelerate in volatility? #What is the role of production in a world where consumption becomes savings? #What is the role of strategy in a world where the game is no longer about winning more consumption than rivals? #What is the role of innovation in a world where greater investment will flow to reinventing moribund industries?"

economics strategy transformation businessmodels markets networks communities UmairHaque
january 2009 by adamcrowe

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Brian Alvey -- Twitter's business model

"I finally figured out a business model for Twitter. It's advertising based and it only works if Twitter doesn't solve their scaling problems..." -- Hehe

twitter failure businessmodels
january 2009 by adamcrowe

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Wired -- Japan, Ink: Inside the Manga Industrial Complex

'"The dojinshi (nonprofessional self-published manga) are creating a market base, and that market base is naturally drawn to the original work," ... the anmoku no ryokai (unspoken, implicit agreement) arrangement provides publishers with extremely cheap market research. To learn what's hot and what's not, a media company could spend lots of money commissioning polls and conducting focus groups. Or for a few bucks it could buy a Super Comic City catalog and spend two days watching 96,000 of its best customers browse, gossip, and buy in real time... These settings often provide early warnings of the shifting fan zeitgeist... the established publishers and the dojinshi creators [relationship works like] something resembling the prisoners' dilemma: If they cooperate — that is, if they honor the terms of anmoku no ryokai — they both gain. But if one overreaches — if publishers crack down aggressively or if dojinshi creators go too far — they both suffer.'

fandom remix narrativeactivism manga comics japan publishing copyright businessmodels content symbiosis
january 2009 by adamcrowe

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ChangeThis -- Better Than Free

"To put it simply, how does one make money selling free copies? I have an answer. The simplest way I can put it is thus: #When copies are super abundant, they become worthless. #When copies are super abundant, stuff that can’t be copied becomes scarce and valuable. #When copies are free, you need to sell things that can not be copied. #Well, what can’t be copied? Consider “trust.” -- 8 things better than free.

free economics businessmodels marketing manifesto #ubiquity KevinKelly pdf
december 2008 by adamcrowe

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Wired -- The Long Tail: The miraculous power of scale

"The lesson is that more is different. The Internet, by giving everybody access to a market of hundreds of millions of people, can work at participation rates that would be a disaster in the traditional world of non-zero marginal costs. YouTube works with just 0.1% of users uploading their own videos. Spammers can make a fortune with response rates of 0.00001%. (To give you some context, in my business of magazines, response rates of less than 2% on direct-mail subscription offers are considered a failure.) Free is not a business--it's zero-cost marketing for a business. And it works best at the largest scale: a small percentage of a big number is a big number."

businessmodels scale networkeffects free #ubiquity
december 2008 by adamcrowe

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Gamasutra -- The Megatrends of Game Design, Part 1

"#Micropayments / #Downloadable content: ...designed to entice the players to deepen their experience of the game by purchasing affordable additional components... I have great faith in the emergence of micropayments (purchase of a map, game mode, character accessories or equipment, episodes, etc.) as a new economic model for our industry. #Merchandising: Today's games feature rich and popular universes, which may yield products taking many forms: action figures, manga and comics, ornaments, school supplies, ringtones, animated series or even novels, theatrical screenplays, or the much wider broadcast of video game tournaments. #Fast gaming: ...the [need] for immediate gaming, without forethought. If the games do not bring sufficient immediate gratification, their users will quickly abandon them. We may thus see games interacting with current sporting events, or even cultural, political, and economic trends. We might even witness the apparition of games centered on socialization."

gaming casualgaming games design gamemechanics transmedia merchandising businessmodels virtualgoods functionalitems decorativeitems micropayments contextawaregaming youwho
december 2008 by adamcrowe

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Clive Thompson -- How T-Shirts Keep Online Content Free

"Increasingly, creative types are harnessing what I've begun to call "the T-shirt economy"—paying for bits by selling atoms. Charging for content online is hard, often impossible. Their algorithm is simple: First, don't limit your audience by insisting they pay to see your work. Instead, let your content roam freely online, so it generates as large an audience as possible. Then cash in on your fans' desire to sport merchandise that declares their allegiance to you." -- As Mary Harrington said: "Never underestimate peoples' desire to dress up."

businessmodels fandom productnarratives fashion tshirts CliveThompson retribalization
december 2008 by adamcrowe

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Rough Type -- A typology of network strategies

#Network effect #Data mines #Digital sharecropping or "user-generated content. #Complements #Two-sided markets #Economies of scale, economies of scope, and experience -- "None of these strategies is new. All of them are available offline as well as online. But because of the scale of the Net, they often take new or stronger forms when harnessed online. Although the success of the strategies will vary depending on the particular market in which they're applied, and on the way they're combined to form a broader strategy..."

economics businessmodels strategy networks markets communities #bandwidth #storage #processing
november 2008 by adamcrowe

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Rough Type -- The Omnigoogle

"It’s this natural drive to reduce the cost of complements that, more than anything else, explains Google’s strategy. Nearly everything the company does, including building big data centers, buying optical fiber, promoting free Wi-Fi access, fighting copyright restrictions, supporting open source software, launching browsers and satellites, and giving away all sorts of Web services and data, is aimed at reducing the cost and expanding the scope of Internet use. Google wants information to be free because as the cost of information falls it makes more money."

google information businessmodels strategy complements
october 2008 by adamcrowe

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Kevin Kelly -- Where Attention Flows, Money Follows

"... when it wins our attention, money will follow [to it]. Money is one way we acknowledge our attention. We "want" something -- an intense form of attention -- and we use money to fulfill this attention. Using the product or service is a continuation of that attention. Recommending it others is a further extension of that attention." -- Nicely done.

attention currency economics businessmodels via:chromacomms
september 2008 by adamcrowe

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MetaFilter -- Birth of a 'Horrible' Fandom

"A brief look at the Big Bang birth of a fandom: the explosion of 'Dr. Horrible' fandom in just 47 days. Quite a lot of "more inside" follows." -- Campfires...

drhorrible fandom enthusiasm tv businessmodels storytelling transmedia musical performance television
september 2008 by adamcrowe

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WebTVWire -- Seth MacFarlane Scores A Hit With ‘Cavalcade Of Comedy’

"The Cavalcade was announced back in June as a tie up between MacFarlane and Google, which is distributing the original series around the Internet using its Content Network, which in turn is part of Google AdSense. Burger King are sponsoring the first ten episodes of the Cavalcade."

google tv content businessmodels burgerking television
september 2008 by adamcrowe

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NewTeeVee -- TubeMogul Creates Web Show Marketplace

"The service lets advertisers search through TubeMogul’s catalog of video producers using such criteria as web show category (entertainment, technology, vlogs etc.), minimum views and demographic reach. Each web show has a profile page that includes a synopsis of the program, sample video, viewership statistics and contact information."

brokerage entertainment businessmodels advertising markets
september 2008 by adamcrowe

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Virtual Goods Insider -- Stardoll: Casual Web Community or Hardcore Virtual World?

"Once core fun is identified and refined, building a great game is actually pretty straightforward... The Stardoll team knows that their core fun is dressing a paper doll. Apparel is dragged off hangers and onto the paper doll. It can be placed anywhere on the screen, and that simple mechanic yields a good deal of fun... As soon as fashions hit the runway or the retail shelf, they are available in Stardoll... All of this makes Stardoll one of the most powerful branding and lead generation tools thats ever been available to the fashion industry."

* stardoll avatar fashion celebrities shopping virtualgoods virtualworlds businessmodels branding engagement advertising experience design productplacement socialobjects objects narrativeobjects narrativeenvironments storytelling transmedia fame
august 2008 by adamcrowe

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Union Square Ventures -- Google's Data Asset

"Data has this really weird quality. In economic terms data has an increasing marginal utility. Anyone who took Econ 101 knows that most physical objects have a decreasing marginal utility. Data has the opposite characteristic. Each incremental point of data adds value to the ones you all ready have. Google’s services all benefit from additional data albeit in different ways. Google could potentially provide a better value proposition to the end user with an inferior algorithm powered by more data, sourced from a broader range of services." Comment: Greg: "total utility increases... marginal utility decreases."

google strategy data datamining psychographics businessmodels economics leverage abundance lawofdiminishingmarginalreturns #processing #complexity #storage diminishingmarginalutility
august 2008 by adamcrowe

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Wired Video -- Interview with Julia Allison

Julia Allison: "I'm going for the Oprah model."

celebrity fame businessmodels theadvertisedlife #ubiquity
august 2008 by adamcrowe

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Wired -- Hollywood Has Finally Figured Out How to Make Web Video Pay

'Rogow is thrilled with Cisco's digital signs, which can be remotely programmed to display anything you want — like a coded message for Anna. "Which is, I think, why you really invented it: for superspies to get secret messages in malls," he quips. "We think that's real cool." He's equally happy with the surveillance system, which can send Anna a digital alert on her smartphone. "But we want to make sure we've got the Cisco logo in a prominent position"

GeminiDivision businessmodels productplacement transmedia storytelling interactivedrama alternativerealitygaming entertainment web tv content #processing #complexity objects #bandwidth #socialization television
august 2008 by adamcrowe

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NYTimes.com -- Google and Creator of ‘Family Guy’ Strike a Deal

"Every time someone clicks on one of the syndicated videos, the associated advertiser pays a fee." -- Great play for context/targeted product-placement (!ads) within animation. Narrative <--> Generative via attention profiling. Your story will be graphed.

google businessmodels distribution entertainment advertising marketing productplacement metabrands virtualgoods search intention attention storygraph theadvertisedlife socialobjects objects
july 2008 by adamcrowe

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Roadmap to the Virtual World -- Is Google Lively?

"Large media companies who are publishers of virtual worlds have told me directly that they are not interested in having their work in a new medium hosted by Google; they fear that they’ll lose more advertising models to Google down the road."

virtualworlds google lively content publishing businessmodels
july 2008 by adamcrowe

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Havas Media Lab -- Desperately Seeking Business Model Innovation

"The logic is simple. Connected consumers are rational. They will continue to defect to digital media: the value proposition is explosive, and their attention is allocated far more efficiently than being forcefed inert, linear media."

businessmodels strategy digital economics attention UmairHaque
july 2008 by adamcrowe

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Havas Media Lab -- Redefining Media

"In an interconnected world, media is everywhere: it’s the stuff that plugs consumption and production together. The opportunities for value creation are greater than ever before - but we must expand our vision of what media is to begin realizing them."

strategy media consumption production hackersvsvectoralists storytelling productnarratives exponential businessmodels
june 2008 by adamcrowe

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Conversation Hub -- Video: Closing the Interactive Loop

Umair Hague on flows not stocks: "Markets, Networks, Communities." -- On creating value: "It's not how or what, it's why and who." -- Stocks = The bigger frame is learning for new mental MNCs. Experience = Neuroplasticity. "Delight" is only one pathway.

strategy businessmodels economics learning context navigation flow experience design synaptics UmairHaque
june 2008 by adamcrowe

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Guardian -- Charles Arthur: Twitter needs to start charging

"Alex Payne of Twitter: 'Twitter was not architected as a messaging system..'" -- "Twitter could... charge for access to its API, or throttle requests over a certain limit from non-paying sources."

twitter api parasitism serviceecologies scalability architecture messaging businessmodels funding
june 2008 by adamcrowe

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Guardian -- Game Pitch: The Sky Remains

"There's currently no culture of micro-payment revenue from ARGs. My future revenue plans are in the separate directions of MMOGs and ticketed live events with innovative technology."

alternativerealitygaming businessmodels eventdesign
june 2008 by adamcrowe

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Umair Haque -- Obama and the Rise of Asymmetrical Competition

"Players playing by radically new rules are rewriting the rules of strategy. And I think the Obama campaign is one of the best examples of the rise of asymmetrical competition."

strategy competition economics businessmodels politics longtail
june 2008 by adamcrowe

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Brand Republic -- RDF Digital and Ogilvy go into partnership to develop entertainment

'"The glass walls that kept advertisers and programme-makers apart are coming down, enabling innovative and popular content to be created through new creative and commercial partnerships"' -- Branded content, last refuge of the damned?

brandedcontent entertainment businessmodels
june 2008 by adamcrowe

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Adam Crowe -- Virtual Goodies

"Back in June 2007 Stanford University hosted the Virtual Goods Summit with speakers from all over the Virtual World gathered to investigate the “emerging market opportunity for virtual goods and economies.” -- Videos and notes

entertainment businessmodels mmorpg virtualworlds virtualgoods functionalitems decorativeitems storytelling objects narrativeobjects productplacement habbohotel neopets nexon
may 2008 by adamcrowe

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A VC -- It's Not The Data, It's The Flow

Quote: Umair: "I don't think it's the data that's so valuable, it's the flow of the data through the service." -- Comment: Gregory: "data is a shadow cast by desire ... new generation business have to be built around the desire..."

data metaphor socialgraph businessmodels dataportability serviceecologies value
may 2008 by adamcrowe

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Umair Haque -- The Microsoft vs Google Endgame

"Google's shift to openness - can you see how it unlocks value for everyone? Google is in a class of its own - across the economy - when it comes to next-generation strategy. Google opening up its ad networks is strategic greatness at work."

google opensocial friendconnect socialgraph platform dataportability facebook yahoo microsoft strategy businessmodels economics search advertising serviceecologies
may 2008 by adamcrowe

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Wired: How To Wiki -- Make Money Around Free Content

"Here's a list all the revenue models you can find in the media industry, all based around a core of free or almost-free content"

free content businessmodels
april 2008 by adamcrowe

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Here Comes Everybody -- Gin, Television, and Social Surplus

"Here's something four-year-olds know: A screen that ships without a mouse ships broken... four year olds, the people who are soaking most deeply in the current environment.. they just assume that media includes consuming, producing and sharing."

children behaviours sharing production consumption cognitivesurplus businessmodels leaky
april 2008 by adamcrowe

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Fast Company -- Ning's Infinite Ambition

Give a starving man a fishing rod and he'll make a social network about it.

ning networkeffects businessmodels socialnetworking advertising propagation
april 2008 by adamcrowe

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Brazen Careerist - Be nimble and creative to grow a career in ‘The Conceptual Age’

"Several years ago, I formed a Board of Directors for my career. They treated me like a business entity and almost overnight my life changed (for the better). I can certainly see why people in the entertainment business have agents."

career management agencyagency business businessmodels startup startists
april 2008 by adamcrowe

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Edge Perspectives - Shift Happens: The Future of Advertising

"The end game is collaboration marketing where advertising, meaning paid placements of messages, becomes more and more marginal. The focus shifts to becoming more helpful by creating rich, serendipitous environments that people will actively seek out."

advertising marketing businessmodels free economics strategy performance design
march 2008 by adamcrowe

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Interactive Marketing Trends - Advertisers Become Conductors

"This makes the conductor agency model - the agency acting as a strategic middle man connecting and managing specialist suppliers to deliver - a possibility."

advertising businessmodels serviceecologies agencyagency metaphor performance design
march 2008 by adamcrowe

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Kevin Kelly -- 1,000 True Fans

1,000 True Fans: "A creator, such as an artist, musician, photographer, craftsperson, performer, animator, designer, videomaker, or author - in other words, anyone producing works of art - needs to acquire only 1,000 True Fans to make a living."

longtail economics distribution aggregation businessmodels startup fandom
march 2008 by adamcrowe

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