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The end of artificial scarcity - The New York Times? The new business model is here!

Canute_2

King Canute was told by his court that he was all powerful. Being a well balanced man, he showed them that he was not. He had them take his throne out to the sea shore and commanded the tide to remain out. Everyone got their feet wet.

Some things cannot be stopped even by Kings or Media barons.

There is a strong rumour that the New York Times will drop its Paid Select Deal where the stars of the system are kept behind the paywall. Jeff Jarvis and others make the case that that Murdoch should make the WSJ free online. The web revolution is almost done - charging for your content is nearly finished as a business model.

Here is how I see it. Friends of mine say I am too aggressive on my timeline - I would be very interested to hear your views. Is this realistic? If not when do you think it will happen?

  • Broadband use in North America has tipped into mass usage: - I think that the web will become, by 2009, the primary distribution channel for all media.Music is already there. Good radio content is moving there (This American Life)The use of online video has now tipped in North America. Consequently, I think that by 2009 theweb likely will become the primary channel for TV and Radio - So this implies that if you are to expand your audience beyond the current one is to go where they are - online. What you broadcast now has to be available easily on the web.
  • Why? It is clear, at least to me, that the web destroys any business model based on artificial scarcity. Content will be all but infinite. What will be scarce in a world of limitless content will be people's ability to find what they value and to help them find more meaning when they find it. Thisis where we will find the new business model. This is what I mean bymaking the attraction and the sustaining of community the main pillarof the new business model. The new scarcity is the new value - the newvalue is making meaning for your members. They have to have a voice -you have to help them tell their stories. To have a voice, they have tobe heard - you have to help them find a community.

Follow the money. Imagine you are a big advertiser. Where will you be in 2009? I think that by 2009, advertising will have shifted decisively away from Print, TVand Radio to the web. Thosewho gain the most will be those that are able to offer the best matchbetween the advertiser, underwriter and the members of the bestcommunities. So those who can attract and sustain the mostattractive and sizable communities will be the winners. They willattract the support of the community members themselves and they willattract the support of those advertisers and underwriters that seek toconnect directly with the members. Ebay makes its money based on thesize and the health of its trading communities. You have to have large,healthy (Trusting) and vibrant communities that do important thingsinside your Trusted Space. This is where you will make your money anddefend your position.

So am I smoking dope? If you think I am off - please give me a better idea and a better timeline.

 

Online ads to overtake US newspapers (FT)

By Aline van Duyn in New York

Published: August 7 2007 05:03 | Last updated: August 7 2007 05:03

The rapid growth of online advertising is expected to see the sector overtake US newspaper advertising in terms of size by 2011.

Theforecast comes against a backdrop of declining advertising salesreported by newspaper groups this year in spite of continued strengthin the US economy.

The findings are from a widely-watched annual research report on the media sector by Veronis Suhler Stevenson (VSS).

Inthe 2007 study, published on Tuesday, VSS forecasts that onlineadvertising will grow by more than 21 per cent per year to reach $62bnin 2011, making it bigger than newspaper advertising, which is expectedto total $60bn in 2011.

Broadcast television and cable andsatellite television combined will continue to take the biggest shareof advertising dollars, and are forecast to reach $86bn in 2011. “Thepath of online advertising and newspaper advertising is a continuationof what we've been observing for many years, but it is finally gettingto the point where the lines will cross,” said James Rutherfurd,managing director at VSS.

The shift in advertising spending fromtraditional media to online and digital alternatives is taking placeacross the globe. Already, some forecasters expect newspaperadvertising to be overtaken by online spending in the UK and Swedenthis year.

The VSS forecasts also illustrate the lag between changes in consumers' behaviour and advertising spending.

Thesurvey also measured the time spent on different media, and in 2007 theamount of time spent reading newspapers is expected for the first timeto be overtaken by time spent online.

Indeed, the shift to digital media has led to a slight decline in the overall amount of time spent consuming media.

In2006, media usage per person per year declined half a percentage pointto 3,530 hours. The study found that while people typically watchedtelevision for at least 30 minutes per session, they tended to watchuser-generated video clips on the web for five to seven minutes.

The use of media in the workplace increased, however, up 3.2 per cent to 260 hours per employee per year, VSS found.

Spendingby companies on information and media, including business-to-businessmagazine and trade shows, is also increasing, up 8.1 per cent in 2006to $227bn.

“Knowledge and information industries drive the US economy, meaning that information is a critical tool,” said Mr Rutherfurd.

“Companies are prepared to pay a lot of money to get that information.”


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  • Robin Carey's picture
    Aug 8 Posted 9 years ago RobinCarey Good insight about artificial scarcity and the web.

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