The Technium: Better Than Free

From my study of the network economy I see roughly eight categories of intangible value that we buy when we pay for something that could be free. In a real sense, these are eight things that are better than free. Eight uncopyable values.ï¿½ I call them "generatives." A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced. It is generated uniquely, in place, over time. In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by davidjennings

The internet is a copy machine

Highlighted by bethers1919

n order to send a message from one corner of the internet to another, the protocols of communication demand that the whole message be copied along the way several times. I

Highlighted by goodbyesex

The digital economy is thus run on a river of copies.

Highlighted by gilbert

Highlighted by kabique01

Our digital communication network has been engineered so that copies flow with as little friction as possible. Indeed, copies flow so freely we could think of the internet as a super-distribution system, where once a copy is introduced it will continue to flow through the network forever, much like electricity in a superconductive wire. We see evidence of this in real life. Once anything that can be copied is brought into contact with internet, it will be copied, and those copies never leave. Even a dog knows you can't erase something once it's flowed on the internet.

Highlighted by cytra2005

Highlighted by kabique01

Even a dog knows you can't erase something once it's flowed on the internet.

Highlighted by mmkrill

Yet the previous round of wealth in this economy was built on selling precious copies, so the free flow of free copies tends to undermine the established order. If reproductions of our best efforts are free, how can we keep going? To put it simply, how does one make money selling free copies?

Highlighted by martinalcrudo

Yet the previous round of wealth in this economy was built on selling precious copies, so the free flow of free copies tends to undermine the established order. If reproductions of our best efforts are free, how can we keep going? To put it simply, how does one make money selling free copies?

Highlighted by caweldude

how does one make money selling free copies?

Highlighted by gilbert

how does one make money selling free copies?

Highlighted by eyalnow

If reproductions of our best efforts are free, how can we keep going? To put it simply, how does one make money selling free copies?

Highlighted by mmkrill

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable

Highlighted by martinalcrudo

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Highlighted by eyalnow

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable

Highlighted by giaffrr

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Highlighted by mariatirone

When copies are free, you need to sell things which can not be copied.

Well, what can't be copied?

There are a number of qualities that can't be copied. Consider "trust."

Highlighted by deborahfitchett

When copies are free, you need to sell things which can not be copied.

Highlighted by dragev

When copies are free, you need to sell things which can not be copied.

Well, what can't be copied?

Highlighted by martinalcrudo

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Highlighted by mmkrill

When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Highlighted by cytra2005

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

Highlighted by goodbyesex

When copies are free, you need to sell things which can not be copied.

Highlighted by caweldude

When copies are free, you need to sell things which can not be copied.

Highlighted by eyalnow

When copies are free, you need to sell things which can not be copied.

Well, what can't be copied?

There are a number of qualities that can't be copied. Consider "trust." Trust cannot be copied. You can't purchase it. Trust must be earned, over time. It cannot be downloaded. Or faked. Or counterfeited (at least for long). If everything else is equal, you'll always prefer to deal with someone you can trust. So trust is an intangible that has increasing value in a copy saturated world.

Highlighted by greenup

When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.

When copies are free, you need to sell things which can not be copied.

Highlighted by bethers1919

When copies are free, you need to sell things which can not be copied.

Highlighted by doobii

There are a number of qualities that can't be copied. Consider "trust." Trust cannot be copied.

Highlighted by giaffrr

Trust must be earned, over time. It cannot be downloaded. Or faked. Or counterfeited (at least for long). If everything else is equal, you'll always prefer to deal with someone you can trust. So trust is an intangible that has increasing value in a copy saturated world.

Highlighted by doobii

trust is an intangible that has increasing value in a copy saturated world.

Highlighted by takuya514

why would we ever pay for anything that we could get for free? When anyone buys a version of something they could get for free, what are they purchasing?

Highlighted by dragev

why would we ever pay for anything that we could get for free? When anyone buys a version of something they could get for free, what are they purchasing?

Highlighted by caweldude

I think the best way to examine them is not from the eye of the producer, manufacturer, or creator, but from the eye of the user.

Highlighted by takuya514

why would we ever pay for anything that we could get for free?

Highlighted by cytra2005

A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced. It is generated uniquely, in place, over time. In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by dragev

From my study of the network economy I see roughly eight categories of intangible value that we buy when we pay for something that could be free.

Highlighted by dedlily

why would we ever pay for anything that we could get for free? When anyone buys a version of something they could get for free, what are they purchasing?

Highlighted by takuya514

A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced.

Highlighted by gilbert

A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured.

Highlighted by martinalcrudo

In a real sense, these are eight things that are better than free. Eight uncopyable values. I call them "generatives." A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced. It is generated uniquely, in place, over time. In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by eyalnow

In a real sense, these are eight things that are better than free. Eight uncopyable values. I call them "generatives." A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced. It is generated uniquely, in place, over time. In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by mariatirone

In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by gilbert

A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured.

Highlighted by giaffrr

In a real sense, these are eight things that are better than free. Eight uncopyable values.

Highlighted by mmkrill

A generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. A generative thing can not be copied, cloned, faked, replicated, counterfeited, or reproduced. It is generated uniquely, in place, over time. In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.

Highlighted by doobii

Eight Generatives Better Than Free

Highlighted by eyalnow

Eight Generatives Better Than Free

Highlighted by cytra2005

Eight Generatives Better Than Free

Immediacy

Highlighted by greenup

Immediacy -- Sooner or later you can find a free copy of whatever you want, but getting a copy delivered to your inbox the moment it is released -- or even better, produced -- by its creators is a generative asset.

Highlighted by eyalnow

Immediacy --

Highlighted by cytra2005

Immediacy

Highlighted by digizen

Eight Generatives Better Than Free

Highlighted by doobii

Immediacy

Highlighted by goodbyesex

As a sellable quality, immediacy has many levels, including access to beta versions. Fans are brought into the generative process itself. Beta versions are often de-valued because they are incomplete, but they also possess generative qualities that can be sold. Immediacy is a relative term, which is why it is generative.

Highlighted by martinalcrudo

Immediacy

Highlighted by doobii

Immediacy

Highlighted by gilbert

Eight Generatives Better Than Free

Highlighted by bethers1919

Personalization

Highlighted by gilbert

Immediacy

Highlighted by digizen

Personalization

Highlighted by martinalcrudo

Personalization

Highlighted by eyalnow

Personalization

Highlighted by greenup

Personalization -

Highlighted by cytra2005

Personalization

Highlighted by digizen

Fans are brought into the generative process itself.

Highlighted by kabique01

Personalization

Highlighted by goodbyesex

Personalization

Highlighted by doobii

You can't copy the personalization that a relationship represents. Marketers call that "stickiness" because it means both sides of the relationship are stuck (invested) in this generative asset, and will be reluctant to switch and start over

Highlighted by martinalcrudo

Interpretation

Highlighted by gilbert

You can't copy the personalization that a relationship represents.

Highlighted by digizen

Interpretation

Highlighted by martinalcrudo

Interpretation -- As the old joke goes: software, free. The manual, $10,000.

Highlighted by eyalnow

The free copy of a book can be custom edited by the publishers to reflect your own previous reading background

Highlighted by kabique01

Interpretation

Highlighted by cytra2005

Interpretation

Highlighted by digizen

Interpretation

Highlighted by greenup

Right now getting your copy of your DNA is very expensive, but soon it won't be. In fact, soon pharmaceutical companies will PAY you to get your genes sequence. So the copy of your sequence will be free, but the interpretation of what it means, what you can do about it, and how to use it -- the manual for your genes so to speak -- will be expensive

Highlighted by martinalcrudo

. They provide paid support for free software. The copy of code, being mere bits, is free -- and becomes valuable to you only through the support and guidance

Highlighted by takuya514

Right now getting your copy of your DNA is very expensive, but soon it won't be. In fact, soon pharmaceutical companies will PAY you to get your genes sequence. So the copy of your sequence will be free, but the interpretation of what it means, what you can do about it, and how to use it

Highlighted by greenup

Interpretation

Highlighted by goodbyesex

Authenticity

Highlighted by gilbert

Interpretation

Highlighted by doobii

Authenticity

Highlighted by martinalcrudo

Authenticity -- You might be able to grab a key software application for free, but even if you don't need a manual, you might like to be sure it is bug free, reliable, and warranted. You'll pay for authenticity.

Highlighted by eyalnow

Authenticity

Highlighted by greenup

Authenticity --

Highlighted by cytra2005

bug free, reliable, and warranted.

Highlighted by greenup

Graphic reproductions such as photographs and lithographs often come with the artist's stamp of authenticity -- a signature -- to raise the price of the copy

Highlighted by martinalcrudo

becomes valuable to you only through the support and guidance.

Highlighted by kabique01

Graphic reproductions such as photographs and lithographs often come with the artist's stamp of authenticity -- a signature

Highlighted by greenup

Authenticity

Highlighted by goodbyesex

Accessibility

Highlighted by gilbert

Authenticity

Highlighted by doobii

Accessibility -- Ownership often sucks. You have to keep your things tidy, up-to-date, and in the case of digital material, backed up. And in this mobile world, you have to carry it along with you. Many people, me included, will be happy to have others tend our "possessions" by subscribing to them. We'll pay Acme Digital Warehouse to serve us any musical tune in the world, when and where we want it, as well as any movie, photo (ours or other photographers)

Highlighted by eyalnow

Accessibility

Highlighted by greenup

Ownership often sucks. You have to keep your things tidy, up-to-date, and in the case of digital material, backed up. And in this mobile world, you have to carry it along with you. Many people, me included, will be happy to have others tend our "possessions"

Highlighted by greenup

Accessibility -

Highlighted by cytra2005

You'll pay for authenticity

Highlighted by kabique01

Embodiment

Highlighted by gilbert

Accessibility

Highlighted by goodbyesex

Accessibility

Highlighted by doobii

Embodiment -- At its core the digital copy is without a body.

Highlighted by eyalnow

Embodiment --

Highlighted by cytra2005

Embodiment

Highlighted by greenup

print

Highlighted by greenup

Embodiment

Highlighted by goodbyesex

Patronage

Highlighted by gilbert

music in a live performance

Highlighted by greenup

Embodiment

Highlighted by doobii

Patronage -- It is my belief that audiences WANT to pay creators. Fans like to reward artists, musicians, authors and the like with the tokens of their appreciation, because it allows them to connect. But they will only pay if it is very easy to do, a reasonable amount, and they feel certain the money will directly benefit the creators.

Highlighted by eyalnow

And nothing gets embodied as much as music in a live performance, with real bodies. The music is free; the bodily performance expensive. This formula is quickly becoming a common one for not only musicians, but even authors. The book is free; the bodily talk is expensive.

Highlighted by caweldude

Patronage

Highlighted by greenup

Patronage

Highlighted by cytra2005

Findability

Highlighted by gilbert

Findability

Highlighted by eyalnow

audience paying simply because it feels good.

Highlighted by greenup

A zero price does not help direct attention to a work, and in fact may sometimes hinder it. But no matter what its price, a work has no value unless it is seen;

Highlighted by eyalnow

Patronage

Highlighted by goodbyesex

Findability --

Highlighted by cytra2005

Findability

Highlighted by greenup

Patronage

Highlighted by doobii

it is very easy to do, a reasonable amount, and they feel certain the money will directly benefit the creators.

Highlighted by goodbyesex

millions of everything requesting our attention -- and most of it free -- being found is valuable.

Highlighted by giaffrr

But sadly, the long tail is only good news for the giant aggregators, and larger mid-level aggregators such as publishers, studios, and labels. The "long tail" is only lukewarm news to creators themselves. But since findability can really only happen at the systems level, creators need aggregators. This is why publishers, studios, and labels (PSL)will never disappear. They are not needed for distribution of the copies (the internet machine does that). Rather the PSL are needed for the distribution of the users' attention back to the works

Highlighted by martinalcrudo

The giant aggregators such as Amazon and Netflix make their living in part by helping the audience find works they love. They bring out the good news of the "long tail" phenomenon

Highlighted by giaffrr

Findability

Highlighted by goodbyesex

Findability

Highlighted by doobii

The giant aggregators such as Amazon and Netflix make their living in part by helping the audience find works they love. They bring out the good news of the "long tail" phenomenon, which we all know, connects niche audiences with niche productions.

Highlighted by caweldude

rom an ocean of possibilities the PSL find, nurture and refine the work of creators that they believe fans will connect with. Other intermediates such as critics and reviewers also channel attention. Fans rely on this multi-level apparatus of findability to discover the works of worth out of the zillions produced. There is money to be made (indirectly for the creatives) by finding talent. For many years the paper publication TV Guide made more money than all of the 3 major TV networks it "guided" combined. The magazine guided and pointed viewers to the good stuff on the tube that week.

Highlighted by martinalcrudo

This is why publishers, studios, and labels (PSL)will never disappear.

Highlighted by giaffrr

Rather the PSL are needed for the distribution of the users' attention back to the works. From an ocean of possibilities the PSL find, nurture and refine the work of creators that they believe fans will connect with.

Highlighted by giaffrr

There is little doubt that besides the mega-aggregators, in the world of the free many PDLs will make money selling findability -- in addition to the other generative qualities.

Highlighted by martinalcrudo

The magazine guided and pointed viewers to the good stuff on the tube that week.

Highlighted by giaffrr

Rather, these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by eyalnow

Rather, these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by martinalcrudo

The giant aggregators such as Amazon and Netflix make their living in part by helping the audience find works they love

Highlighted by kabique01

These eight qualities require a new skill set. Success in the free-copy world is not derived from the skills of distribution since the Great Copy Machine in the Sky takes care of that. Nor are legal skills surrounding Intellectual Property and Copyright very useful anymore. Nor are the skills of hoarding and scarcity. Rather, these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by mariatirone

In short, the money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

Highlighted by gilbert

There is little doubt that besides the mega-aggregators, in the world of the free many PDLs will make money selling findability -- in addition to the other generative qualities.

Highlighted by caweldude

hese new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by takuya514

These eight qualities require a new skill set. Success in the free-copy world is not derived from the skills of distribution since the Great Copy Machine in the Sky takes care of that. Nor are legal skills surrounding Intellectual Property and Copyright very useful anymore. Nor are the skills of hoarding and scarcity. Rather, these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by caweldude

In short, the money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

Highlighted by eyalnow

Ads are widely regarded as the solution, almost the ONLY solution, to the paradox of the free. Most of the suggested solutions I've seen for overcoming the free involve some measure of advertising. I think ads are only one of the paths that attention takes, and in the long-run, they will only be part of the new ways money is made selling the free.

Highlighted by martinalcrudo

In short, the money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

Highlighted by giaffrr

In short, the money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

Highlighted by caweldude

Ads are widely regarded as the solution, almost the ONLY solution, to the paradox of the free.

Highlighted by takuya514

I think ads are only one of the paths that attention takes, and in the long-run, they will only be part of the new ways money is made selling the free.

Highlighted by takuya514

Ads are widely regarded as the solution, almost the ONLY solution, to the paradox of the free. Most of the suggested solutions I've seen for overcoming the free involve some measure of advertising. I think ads are only one of the paths that attention takes, and in the long-run, they will only be part of the new ways money is made selling the free.

Highlighted by caweldude

Beneath the frothy layer of advertising, these eight generatives will supply the value to ubiquitous free copies, and make them worth advertising for. These generatives apply to all digital copies, but also to any kind of copy where the marginal cost of that copy approaches zero. (See my essay on Technology Wants to Be Free.) Even material industries are finding that the costs of duplication near zero, so they too will behave like digital copies. Maps just crossed that threshold. Genetics is about to. Gadgets and small appliances (like cell phones) are sliding that way. Pharmaceuticals are already there, but they don't want anyone to know. It costs nothing to make a pill. We pay for Authenticity and Immediacy in drugs. Someday we'll pay for Personalization.

Highlighted by mariatirone

It costs nothing to make a pill. We pay for Authenticity and Immediacy in drugs. Someday we'll pay for Personalization

Highlighted by martinalcrudo

Rather, these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can't be replicated with a click of the mouse.

Highlighted by kabique01

Rather it follows the path of attention, and attention has its own circuits

Highlighted by kabique01

“There’s no shortage of content in the world—but there is a huge need for editing.”

Highlighted by kabique01

Another generative that can be charged for is Community. You can give away content for free, then charge users to be in the "fan club"

Highlighted by deborahfitchett

I think I've identified another leg to the table of generative values: Optimization.

It's related to personalization and interpretation, but slightly different to them. Optimization takes a process already used by the client, and sells a better version that achieves the same goals with more efficiency.

Highlighted by deborahfitchett

I mean really our whole culture is based on it. If you look around the room you'll be hard-pushed to find anything that isn't in some way a copy.

Copy, mutate, test... copy, mutate, test... copy, mutate, test... it's what we do. I think we should be incubating this process, not bottlenecking it.

Highlighted by deborahfitchett

Popularity Report

Total Popularity Score: 0

Rank

URL Tag Cloud

Groups (0)

Related Lists

Bookmark History

Public Comment

on 2008-02-07 by deborahfitchett

Public Sticky notes

Site Community

Readers (172)