The Radical New Rules of the Internet Content Economy

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In 1995, edyson asked: “How will people—writers, programmers, and artists—be compensated for creating value? What business models will succeed in this foreign economy?” This week’s WIRED Classics is a reminder of how persistent these questions are:

But creators of content on the Net still face the eternal problem: the value of their work generally won't receive recognition without wide distribution. Only by attracting broad attention can an artist or creator hope to attract high payment for copies. Thus, on the Net, the creators give first performances or books away widely in hopes of recouping with subsequent works. But that breadth of distribution lessens the creator's control—of who gets copies and what they do with them.

The trick is to control not the copies of your work but instead a relationship with the customers—subscriptions or membership. And that's often what the customers want, because they see it as an assurance of a continuing supply of reliable, timely content. In the world of software, for instance, it's becoming easier to define and create products equivalent to a standard. Unknown vendors who can guarantee functionality will squeeze the prices of the market leaders. Of course the leaders will continue to win because they can use almost-free content to sell ancillary products or upgrades, and because they've reinvested in loyal distribution channels .

 

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