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We've created a culture where we want everything for free, even going as far as to block ads with AdBlock... and then we complain when things don't go our way.
by gkoberger 16y ago
We've created a culture where we want everything for free, even going as far as to block ads with AdBlock... and then we complain when things don't go our way.
This can't be sustained forever. If we want legitimate content producers to take the Internet seriously as a platform, we need to start forking over money.
Edit: To anyone replying to me, we can debate this forever. The Chris Anderson v Malcolm Gladwell debate proved it's a controversial topic. However, I don't know where you're getting "close to zero." A good engineer or other employee is at least $100k a year. It may cost almost nothing for new headlines to show up on Digg every day, however Diggs 100 or so employees all need to put food on the table somehow.
- kiba 16y agoOn the contrary, free stuff is the overriding trend for stuff that have the marginal cost of replication close to zero. It is not so much culture that is driving it, but the economic forces that does. Also, the allegedly common complainers who only want free stuff is unquantified. You will need some evidence to show that most people are conscious freeloaders who complain a lot.
- siglesias 16y agoThe marginal cost of replication for things like news, drugs, and software, especially software, have always been close to zero, and your economics would suggest that these would have trended toward marginal costs of a few bucks per CD, but that's the wrong way to think about it. Software has large development costs that must be recouped, so marginal cost doesn't really play into what's going on here.
- pchristensen 16y agoIt's the lack of straightforward substitutes that keep prices high on software and drugs. The large fixed cost of development only means that (proprietary) software won't get written or drugs won't be discovered and put through FDA trials if prices fall due to competition. Take commercial C compilers. Used to be a thriving industry, but once Gcc got good enough, people stopped paying.
- kiba 16y agoRight, copyright often retard and frustrate attempt to get it to marginal cost. Still, there are pirated goods, which are often inferior products due to inconvenient access. The one exception that I had already mentioned are translated Japanese manga and to less extent other Asia originated comics such as China and Korea. Generally, they act more as advertising and brake to competitor substitute goods that could otherwise gain momentum.
- rick888 16y ago"which are often inferior products due to inconvenient access" It's interesting because DRM and the "inconvenient access" you speak of were created as a direct result of mass piracy.
- neutronicus 16y agoPeople certainly still pay for intel's C compiler.
- kiba 16y agoSo it doesn't completely displace most compiler, but it does displace a lot? On the flip side, how many people actually use Intel's C compiler as opposed to people who just use GCC?
- hvs 16y agoOn Windows, GCC is not a very viable option (yes, I'm aware of Cygwin, MinGW, etc) for production software right now. And you'll be hard pressed to find a solid compiler that ISN'T proprietary.
- fragmede 16y agoOn Windows, perhaps due to competition from GCC, perhaps not, Microsoft offers various Visual Studio Express editions free of charge, and the license allows commercial use, so you can sell programs made with Express editions. You're right in that the compiler IS proprietary, but the question is not of license, but of wallet cost to user - $0.
- kiba 16y agoSoftware has large development costs that must be recouped, so marginal cost doesn't really play into what's going on here. Just because something cost a lot of money to produce doesn't mean you get to price it "cost + profit margin". Reality doesn't work that way. And things does get driven down to zero. Look at pirates who offer download of vista for free on bittorrent. Webcomics are free. Most Asian comics that are available in English are in actual, pirated and scanlated, but are often available in way more convenient format than the legitimate things(which are often not translated and probably never will make it to the shore of foreign countries). Most stuff on the internet are free anyway, which should be ample evidence for my argument.
- siglesias 16y agoMost stuff on the internet are free anyway, which should be ample evidence for my argument. What stuff? Stuff that's paid for with advertisement dollars? Do you think this stuff would still be free or marginal cost without those advertisement dollars? I think the fact that so much software and media (probably well over 90%) is paid for in some fashion by consumers (either through advertisers or directly) is evidence to the contrary of what you are saying. There's no such thing as a free lunch. Econ 101.
- kiba 16y agoThings would still be driven down to marginal cost. It would instead be pirated, rather than be supported by advertising dollars. It would mean that people would have to find alternative business models. So, it does not void my arguments at all.
- deleted 16y ago[deleted]
- siglesias 16y agoThe risk of being fined makes the cost of piracy non zero.
- 16y ago
- rick888 16y ago"On the contrary, free stuff is the overriding trend for stuff that have the marginal cost of replication close to zero. It is not so much culture that is driving it, but the economic forces that does." Currency also has little value (and is relatively easy and cheap to replicate). It's just ink and paper, but we value it as much higher. If you bought software from me and I sent you random bytes instead, would you be satisfied? According to you, they have the same value. You aren't paying for the bits that are assorted in a specific order. You are paying for the time, effort, and knowledge it took to assort those bits (which is still unique as the average person can't press a button and create Photoshop with no effort). "Also, the allegedly common complainers who only want free stuff is unquantified. You will need some evidence to show that most people are conscious freeloaders who complain a lot." As a simple example, look at some of the startups here on HN. Many have gotten rid of the freemium model. The reason? Freeloaders are taking up resources and they can't afford it. Freeloaders are driving the cost of software to $0. Because software isn't something tangible, its value is based on what people think it's worth. If anybody can download your app for free (because freeloaders have downloaded it and spread it around), the perceived value will rapidly approach $0. The general attitude about getting everything for free will just lead to less commercial software. Personally, I'm not selling software anymore. I'm selling SaaS. So Instead of paying a flat-fee for software, my users will now be paying a monthly fee. Business owners aren't stupid. They will eventually realize that piracy is impossible to defend against. The consequences are less freedom for the customer/end user.
- kiba 16y agoThe general attitude about getting everything for free will just lead to less commercial software. Personally, I'm not selling software anymore. I'm selling SaaS. So Instead of paying a flat-fee for software, my users will now be paying a monthly fee. Business owners aren't stupid. They will eventually realize that piracy is impossible to defend against. The consequences are less freedom for the customer/end user. My opinion is that commercial software will just change, not be less and less. I also thought some people are too dumb to realize that piracy is impossible to defend against and will be swept away in changes. I just realize that I wasn't looking at the right kind of people. Internet savy and those who are aware of the nature of software economic already realize this. SaaS is exactly the conclusion that I come up for a web application that I was supposed and still angling to complete.
- davidw 16y agoOnce something is a 'commodity', and the sunk costs have been recouped, the price will trend towards the marginal cost. This comes straight from Varian and Shapiro's "Information Rules" by the way - it's not just something I'm making up.
- polynomial 16y ago"Intellectual Property" is the dam that keeps the waters of commodification at bay (where you have products with a negligible cost of replication.)
- kiba 16y agoIt's more like a leaky dam that will eventually burst and explode. It slows down commodification of software, sometime to a significant degrees.
- Xk 16y agoI disagree, and your comment is a case in point. An incredibly large portion of the valuable content on the internet is written by people who expect no payoff in the traditional sense of the word. You don't get anything money by writing that comment, yet you write it none the less. This is becoming more and more the case.
- _delirium 16y agoIndeed, if anything I notice a slight negative correlation. The most unabashedly "capitalist" content providers, in the sense of doing it mainly for the money, are the tabloidish blogs: gawker, valleywag, gizmodo, etc. They produce pretty mediocre content (and we don't even have to discuss the content farms). The top content imo comes mostly from folks not being paid, at least not being paid directly for the content: university professors, essayists like Paul Graham, tech bloggers like Yosef K, and so on, who write about stuff that interests them, and publish it online. Some of them do some low-level monetization of their content via Amazon links and a few ads, but many don't even do that. It's not a pure anti-correlation, because there is good commercial stuff and crappy free stuff, but I certainly don't see a strong positive correlation either.
- Paulomus 16y agoYes, Wikipedia would be another example. It is one of the most useful destinations on the web, but does not charge anything. So too are web-comics, just about all of which are free to view, while the creators make their money elsewhere (through donations, t-shirt/book sales etc.). In these kind of things it is the voluntary readership/participation that makes the site/blog/comic a success. The existance of a community of users is a valuable resource that should not be alienated lightly.
- loewenskind 16y ago>essayists like Paul Graham pg doesn't get paid directly from the essays on his site (afaik), but he does gain reputation and credibility. How many more books did he sell because of his essays (e.g. I bought On Lisp after reading "beating the averages")? The market has been more sophisticated than "give me X and I'll give you money" for a very long time.
- rokhayakebe 16y agowe need to start forking over money I like how you say we should pay, as opposed to we should ask users to pay. The funny thing about internet entrepreneurs is we want to get everything for free, yet charge users for something.
- acangiano 16y ago> The funny thing about internet entrepreneurs is we want to get everything for free On the contrary, I'd say that entrepreneurs love rewarding fellow entrepreneurs who create a valuable service or product.
- StavrosK 16y agoI used to want to get everything for free, until I made historious. Now, my mindset is "these guys deserve my money for their product" (if the product is good enough, obviously).
- w1ntermute 16y ago> We've created a culture where we want everything for free, even going as far as to block ads with AdBlock... and then we complain when things don't go our way. I think you're overestimating the power of AdBlock. In fact, I know friends who aren't tech savvy to whom I've shown AdBlock, and when they get a new computer, they don't even remember to install AdBlock. We tend to be annoyed by web ads because we're tech savvy, but many average users couldn't care less that they're being bombarded by a constant stream of corporate propaganda. Because of this, while it might be exceedingly difficult to monetize a site geared towards tech savvy users (Reddit, for example), many other sites (like Facebook) get by just fine.
- edanm 16y agoI'm a techie who doesn't use AdBlock. And I've actually noticed something very different. I rarely look at ads on most sites, but on Tech-oriented sites, the ads tend to be much better. This is because they're more focused on my niche. For example, I've clicked on dozens of ads on Stack Overflow, and even subscribed to a few things that way. I honestly think turning on AdBlock is depriving me of valuable information, on those sites at least.
- Supermighty 16y agoThis is an example of where advertising should go. Highly targeted ads tailored to specific individuals. If there is an ad for something I would genuinely want to learn about then by all means show it to me. The catch is that we have to reveal a lot of personal information before the ads can become highly targeted.
- tnorthcutt 16y agoThe catch is that we have to reveal a lot of personal information before the ads can become highly targeted. Not necessarily, unless that also includes revealing a lot of personal information by virtue of the site you're visiting. For example, a site focused on a specific sports team could fairly easily target their advertising to their typical user, and be showing ads that are actually relevant to their users.
- sliverstorm 16y ago> Diggs 100 or so employees all need to put food on the table somehow. I think that's the real problem here. People don't give a damn whether Digg's employees can afford food; they want what they want, when they want it, and for the price that they want it. That, or they expect someone else to do the paying for it.
- deleted 16y ago[deleted]
- greenlblue 16y agoThere is another reason people expect stuff to be free and it's because business people in general don't know of any other way of framing things. The last 50 years has been all about advertising and so the business culture knows how to tie ads with content but they don't know how to create great content and convince users to pay for it.
- eru 16y agoAre you sure? I buy my books without ads.
- greenlblue 16y agoFlip to the last few pages of any technical book. I know for a fact that O'Reilly books put a plug for other related O'Reilly books in the last few pages and I'm certain most other books to the same thing and some even have them up front. Technical books I think qualify as good content.
- eru 16y agoOK. But you have to look for them. And the original comment was about all content, not some.
- Alex3917 16y ago"This can't be sustained forever. If we want legitimate content producers to take the Internet seriously as a platform, we need to start forking over money." Right now there's only a tiny trickle of good content being created on the Internet. Of the hundreds of thousands of posts being written each day, there are maybe 5 at best that don't completely suck. What we really need is a system where the authors of the best 25 articles of the day each take home 100K or so. For the nominal cost of less than a billion dollars a year we could spark an intellectual renaissance to rival any other in human history.
- billybob 16y ago"Of the hundreds of thousands of posts being written each day, there are maybe 5 at best that don't completely suck." I'm sorry, but that's just silly. 1) You're not reading the whole internet, 2) you're not the intended audience for much of what's written, and 3) opinions vary. Are you proposing we replace the free market of authors and readers with some central judging authority? How would these people filter through all this content, on what basis would they judge it, and how would they be funded? How do we protected against government meddling and political bias? This is a pretty big problem you're creating to replace a system which, basically, seems to work fine. It would be nice to help creators make money, but you can't fix human taste.
- Alex3917 16y ago"Are you proposing we replace the free market of authors and readers" We don't have a free market of authors and readers. Readers don't currently pay authors, this is what needs to change. "How would these people filter through all this content, on what basis would they judge it, and how would they be funded? How do we protected against government meddling and political bias?" Not sure. "This is a pretty big problem you're creating to replace a system which, basically, seems to work fine." I don't think it works fine at all, judging by the fact that all of our biggest problems are marketing problems. In any given area of society the science is between 25 and 100 years ahead of the status quo.
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- nollidge 16y agoThe only reason I use AdBlock is to eliminate distractions from the page. I don't mind being marketed to, but I do mind it when it gets in the way.