Chris Anderson about Free

December 6, 2007


Mr. Wired, Mr. Long Tail gave a speech at the Nokia World 2007 in Amsterdam about Media in the world of a Post Scarcity Economy, an Abundance Economy World.
“The Free”. See the webcast here.

He has a simple thesis based on basic economies:
In a competitive market price falls to the marginal cost.
But in a high technology market the marginal costs fall to nearly zero, so the price also falls to nearly zero…. to close to free.

So his thesis is: “Round down! If the unitary cost of something is approaching zero, treat it as zero and sell something else.”

And he shows some models why and how it makes sense to give things away for free: Cross subsidy, Ad supported, Freemium, Marketing et cetera.

His advice to industries that get confronted with a price nearly zero is:
Redefine the business you`re in!

Great thoughts.


One Response to “Chris Anderson about Free”

  1. I am a big fan of Chris’s work and this new book, I believe, will dramatically change the way companies grow their markets.

    To this end my staff and I are offering a free tips booklet on how to network effectively for current and recent college grads to help them get “smart starts” in life which is something I believe is greatly needed. Any college grad can just go to and download a free copy of the booklet. I am eager to see what the results will be as we further help support these students build further support in an onlne social network we are creating by inviting them to join the community for free.

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