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Existing Business Models for
Information Products
per electronic useSerial transaction license, Site license, Paymenttransaction purchase, Single-transaction license,Fee models: Subscription purchase, Single-
advertising income, Advertising income onlyAdvertising models: Combined subscription and
hidden motives), Free samples (“Free” distribution models: Free distribution (no
e.g.,
coming
products, bundling).when you buy something else (complementaryattractions), Free first version, Free information
Less Traditional Business Models for
Information Products
few people other than the purchaser would want itExtreme customization: Make the product so personal that
browse but difficult to get in its entiretyProvide a large product in small pieces, making it easy to
increases demand for) the traditional productGive away digital content because it complements (and
Give away the product, sell the service contract
(Shareware)Allow free distribution of the product but request payment
distributionPosition the product for low-priced, mass market
“Daft Club” Model
Purchase Daft Punk CD and you also get a “personalized it you get:code” that gives you access to the Daft Club server. From
- Ability to download a new Daft Punk “bonus track”
each month. The bonus tracks are not released on CDs.
- Access to the rest of the Daft-Club user community.
Bonus tracks will be wrapped with DRM metadata that but would many people bother circumventing?says they can’t be copied. Almost surely circumventable,
“Napster++ as Superdistribution” Model
(Napster--??)
Napster users pay monthly subscription fee.
settle.)Bertlesmann server. (And other labels if others alsoThey can download DRM-wrapped songs from
DRM system keeps track.rebates on their next month’s subscription fees.When they redistribute via P2P file sharing, they get
network effects.They retain the chat-room, “Napster community”
Again, probably circumventable. But is there a price
point at which circumvention would not be worth it?
“Street Performer” Model
(Cont.)
Many variations:
- Some publishers “edit” and choose, and• Non-anonymous big donors• New author gives first book away
some don’t
- Famous authors don’t have to deliver
chapter 1 in advance
“Hum A Few Bars” Model
(K. McCurley, Financial Crypto ’00)
room floor or your computer disk with a “CD collectionJF Note: Can be “all streaming”; no need to clutter your livingcable TV.”into my speakers. I’d expect to pay one monthly fee, as I do forI’ve hummed looked up, retrieved from their databases, and pipedthese environments so that I can hum a few bars and get the songelectronic companies, and data-networking companies to wireshower, and while jogging. I want the music companies, consumer-“I listen to music in the living room, in the office, in the car, in the
Music
will be purely a service, not a product.
