These are quotes from Malcolm Gladwell's article on Chris Anderson's book "Free: The Future of a Radical Price" from The New Yorker.
[Anderson] Newspapers need to accept that content is never again going to be worth what they want it to be worth, and reinvent their business.
Out of the bloodbath will come a new role for professional journalists...There may be more of them, not fewer, as the ability to participate in journalism extends beyond the credentialed halls of traditional media. But they may be paid far less, and for many it won't be a full time job at all. Journalism as a profession will share the stage with journalism as an avocation. Meanwhile, others may use their skills to teach and organize amateurs to do a better job covering their own communities, becoming more editor/coach than writer. If so, leveraging the Free -- paying people to get other people to write for non-monetary rewards -- may not be the enemy of professional journalists. Instead, it may be their salvation.
Anderson's second point is that when prices hit zero, extraordinary things happen.
[Behavioral economist Dan Ariely] A group of subjects are offered a choice between two kinds of chocolate, Hershey's Kisse for 1 cent, and Lindt truffles for 15 cents. Three-quarters choose the truffles. For the next test group, the price is reduced by 1 cent. The Kisses are now free. The order of preference is reversed. Sixty-nine percent choose the Kisses. The magic word free has the power to create a consumer stampede. Amazon does the same thing with free shipping for orders more than $25. People will buy a second book to get free shipping.
[Anderson] From the consumer's perspective, there is a huge difference between free and cheap. Give a product away, and it can go viral. Charge a single cent for it, and you're in an entirely different business. The truth is that zero is one market and any other price is another.
The philosophy of embracing the Free involves moving from a scarcity mindset to an abundance mindset. Giving something away means that a lot of it will be wasted. But because it costs almost nothing to make things digitally, we can afford to be wasteful. Mechanisms we set up to monitor and judge the quality of content are artifacts of an era of scarcity. We had to worry how to allocate scarce resources like newsprint, shelf space and broadcast time.
Digital infrastructure is effectively Free.
Consumers love Free.
Free means never having to make a judgment of value.
Counter argument: [Gladwell] The Wall Street Journal has found more than a million subscribers willing to pay for reading online. Broadcast television is struggling. Premium cable is doing fine. Apple makes more money selling iPhone aps (ideas) than the iPhone (stuff). The company could give away the iPhone to boost downloads.
[Me] Fascinating stuff!
