RE: UKNM: Subscriptions

[Bunder, Leslie]

Yes, there are plenty of purveyors of information.  But at the same

time, it is not always a case of free is what everyone wants and the

bottom line is that free does not sustain a business.


And indeed as mentioned before we need to realise that business to

business information is not the same as consumer.  The needs are

different and the attitudes to how they use the information can also be

different.


Pure free information does not work long term unless there are other

ways of supporting it but within an overall package is what you can do.


Yes there  is more information than ever before, but in all sorts of

price bands.  We really need to be clear what we mean by information.

Are we talking consumer entertainment or are we talking company name

searches.  


We need to focus on these two areas as two seperate businesses with

different objectives and needs.


Yes you can get free Net access via Freeserve, Virgin et al, but for a

business you really wouldn't want this as there are no levels of

guarantee, nor in any real come back if systems go down, lose data etc.

With a paid for service you can get all of this.


Likewise with free information.  It may be very general, it may not be

up to date but it is free.    


People will always willing to pay for something if they can see real

value in it.  



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

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

played out again. "


In the above this is a consumer issue and indeed, Encarta came in with

agressive pricing.  This is not a business to busness situation where

the game is not the same.  Sure businesses want to lower costs and get

lower-cost information, but it needs to be quality information.


There will always be those who can do it "cheaper" but for how long can

it be "cheap"??? and what gurantees can you give that the information is

going to be accurate.  I don't want "cheap" information if the value is

not there, I want cost-effective information that is going to help me

and my business and buying information on price alone is not what you

should be doing.  You buy information on a number of levels and needs.


It's rather like you can get a press release for free which contains the

latest Jupiter or Fletcher report and indeed that will give valuable

information but if you buy the full report you will get an even better

picture and that is even more valuable than the press release.


Leslie

____________________________________________________

Leslie Bunder 

Project Manager,  TDL InfoSpace

e-mail:

Leslie [dot] Bunderinfospaceuk [dot] com

 (work) or

lesliebunder [dot] com

 (home)

Web:  www.infospace.co.uk

tel: 01252 390516 (UK)   +44 1252 390516 (outside UK)

mobile: 07010 701967 (UK)  or +44 7010 701967 (outside UK)

Thomson House, 296 Farnborough Road, Hants, GU14 7NU


----------

>

From: jameswebweaver [dot] uk [dot] com[SMTP:jameswebweaver [dot] uk [dot] com]

>Sent: 	16 June 1999 14:36

>

To: uk-netmarketingchinwag [dot] com

>Subject: 	Re: UKNM: Subscriptions

>

>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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