Reducing piracy

February 1st, 2012 at 11:00 am by David Farrar

CEO Vikram Kumar has a good blog post on how you can make money from zero priced products. He notes:

Accepting some people won’t pay doesn’t mean they can’t make money. Instead, they need to come up with innovative answers to the question, “How do we give people what, when, and how they want our products at a zero price?”

The answers are there but it takes effort, attention, and good ideas. Let’s take an example from another industry, the software industry.

Zero cost software

How do you make money from software without charging anything for it? It’s not simple but several models exist. For example, there’s the upgrade or “freemium” model (charge for extra features or functionality); the services model (charge for allied services, e.g. design or support or tools); the donation or funded model (customer pays what they can or want to, before or after the software is developed); the loss-leader model (gain popularity to sell other software); the advertising model (money made from advertisers); etc.

How can this be applied? Just ask Justin Bieber how he got his break. Or, read this great article in The Guardian about Gorillaz as well as the one in GigaOM where author Neil Gaiman talks about how he is selling more books in countries where his books are pirated.

The traditional business model of Hollywood is based on the 1970s, not the 2010s. It will take time, but eventually they will change.

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7 Responses to “Reducing piracy”

  1. Viking2 (11,412 comments) says:

    all goes to prove beyond reasonable doubt that corporate yanks are bloody dumb bullies as ever.
    That’s why half the world don’t like them.
    In the meantime they will do their best to stuff it for everyone.(along with their mothers little helpers like NZ.

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  2. EverlastingFire (286 comments) says:

    I feel all music should be shareable for free. Musicians should only charge for actually performing it, imo.

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  3. Put it away (2,878 comments) says:

    Might be time to get the networks out of the funding loop and crowdsource it. A phone app would be perfect, press a button to contributea couple of bucks direct to the artists /production company in exchange for a quality download when it’s made. Producers can sell it to the networks too for some extra profit split with the contributors

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  4. Will de Cleene (485 comments) says:

    It’s a shame the conglomerates can’t see lo-fi free copies as frictionless marketing. It remains to be seen whether they’ll take the Kodak or Fuji path.

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  5. voice of reason (490 comments) says:

    “EverlastingFire (227) Says:
    February 1st, 2012 at 12:33 pm
    I feel all music should be shareable for free. Musicians should only charge for actually performing it, imo”

    Possible perhaps – if all studios lent their services for free also.

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  6. tristanb (1,127 comments) says:

    It will never happen. The record companies are getting money for nothing, they’re going to push for laws to make this happen forever.

    People talk about “who will make music” – I assure you that people will still make music, even if removed all copyright protection from musical works today. And if U2 stops making albums? Who gives a shit.

    I’d rather have a free internet with no new professional music, than an internet that needs to be monitored by the government to ensure companies are getting money from my every breath.

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  7. Luc Hansen (4,573 comments) says:

    So DPF, you’ll be supporting Mr Dotcom, now?

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