Re: UKNM: Subscriptions

[James Bruce]

Yes, except that the proposition outlined is a snap shot view and doesn't

take into account evolution driven by competition.


The market's barriers to information are changing downwards *and* there are

more purveyors of information than ever before. The www has radically

re-defined the delivery and consumer models and early adaptors will

undoubtledly see the benefits, (it would be interesting to know how many of

the existing pure info vendors are using this channel in any way except to

propogate existing commercial models, I expect not many). All this will feed

it's way into the info economy by expanding it and lowering costs of

distribution, price elasticity will increase and the smarter info purveyors

will develop new pricing models.


One model which has had a lot of hot electrons / air vented recently is that

of the use of Ad banners to fund the distribution of 'quality

content/information at giveaway prices. This will lead to a world where

quality information becomes commoditised and is used to build brand and

expand the utility of a specific network centric application (if this world

isn't already here). This 'utility' value will ultimately be the capital

value of the enterprise.


Hanging on to 'good quality databases' using existing pricing models will

undoubtedly lead to the 'Encarta v Encyclopaedia Britannica' scenarios being

played out again. An aggressive brander *and* generator of quality info

could take share from the judicious exploitation of the new economic models.


Even hard-core business to business info dealers will have to re-assess the

competitive / collaborative impact of the www on the way they extract value

from their processes.


The days of easy money are numbered ;-)

(which days I hear you ask)



James Bruce

Managing Director

WebWeaver Media Construction Ltd

_____________________________


-----Original Message-----

From: Bunder, Leslie <

Leslie [dot] Bunderinfospaceuk [dot] com

>

To: 'Clay Shirky' <

clayshirky [dot] com

>

Cc:

'uk-netmarketingchinwag [dot] com

' <

uk-netmarketingchinwag [dot] com

>

Date: Wednesday, June 16, 1999 11:22

Subject: RE: UKNM: Subscriptions



Let focus this to the UK and also lets focus by what we mean as

information and indeed the way we price information...


There are two areas for information.  There is business to business and

there is consumer.  We need to understand that there are differences in

these two markets and indeed in the way information is priced.


Businesses don't always want to get limited free information that may

suit a consumer  for basic needs, they understand and know that

information is valuable and there is a price attached to it.


Indeed, also consumers realise that free information is not always able

to deliver what they want.


The other issue is how we price information.  You may be a subscriber to

a share dealing service and pay an annual fee or pay per deal.  In turn

for you dealing with that sharedealing service will be granted access to

content that non-subscribers don't have access to.


You see, the way in which we price information is also in the way we

package it and offer it to people and businesses.  We can make it

"inclusive" within some deal.  For example, you might buy a CD from a

music site and then buying that CD entitles you to some exclusive

content you can't get elsewhere.


I don't think the issue is about "free" information or content it is

about the way content is packaged and the way people percieve it.


You ask what information is not going to come down in price.  I can't

guarantee predictions, but from what I can see, good quality databases

will not come down in price.  Quality databases and content can only

stay that way if they are able to cover costs and make money to invest

in making the product better.


Leslie


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