http://www.wired.com/techbiz/it/magazine/16-03/ff_free

I think you’re largely arguing semantics here (as is Gladwell). I don’t think you really disagree with Anderson’s argument at all… just his use of the word free. Still, if I can read the New York Times or your blog without paying for it then it’s free to me. We make no transaction and exchange nothing other than ideas. That’s free… to me at least. How you the publisher choose to frame it is up to you. If you don’t want to be in the free content business and would prefer to think of yourself as being in the advertising business, then knock yourself out. I don’t care if you don’t think it’s free or if your advertisers don’t think it’s free, I do… and in the ad business equation I’m the one who really matters.

Why should a full page in the NY Times print product be more valuable than a full page unit on the Kindle when it has the same reach and audience?

Because there’s another metric you’re leaving out: ROI. If a full-page print ad has a higher ROI than an iphone ad or a web-browser ad (and I think so far the data shows it does), then it’s worth more money…

With television and video content we’re seeing the same advances in technology with platforms like Hulu and Boxee delivering content through your computer rather than your cable box. The current CPMs on in-video advertisements are extremely poor but when the eyeballs switch the money will follow.

Again, I think the ROI is more tied to the medium than you do. I think that what will make Hulu work is when the media companies stop trying to fight Boxee and other services that bring Hulu to the television, and start charging cable-ad rates for ads that air on the TV screen.

When I watch Hulu on my laptop, it’s a much different experience than when I watch Hulu on my television via my Media Center. My attitude is different. I’m in a different mode.

Hulu has the ability to determine how their content is being played and what device it is being shown on; just adjust the ad rates based on what device and situation the video is in, and, voila! you get a profitable enterprise…

In line with talking about content creation I believe that the new business model is actually paid, it is currently free save for a handful of publications and there are a number of media outlets sitting in board rooms figuring out what a subscription model will look like.

My informed guess is that many outlets will put up these virtual pay-walls but that they won’t last long. My reasoning is based on the fact that I do agree or at least relate to there being a societal movement to continue with “free”.

I’m also going to put myself out there and say that technology will play a huge role in sustaining a free model. As devices like the iPhone and Amazon’s Kindle replace newspapers I believe there will be a pivotal shift in advertising budgets towards these digital formats. Why should a full page in the NY Times print product be more valuable than a full page unit on the Kindle when it has the same reach and audience? With television and video content we’re seeing the same advances in technology with platforms like Hulu and Boxee delivering content through your computer rather than your cable box. The current CPMs on in-video advertisements are extremely poor but when the eyeballs switch the money will follow.

I’ve gone further into these ruminations in my post on The Flawed Online Video Model – would love to hear your feedback!

http://www.rikinontheweb.com/the-flawed-online-video-model-same-as-newspapers-part-2