Hblog

Creative Commons Business models

Read this great article by Andy Raskin from Business 2.0 entitled 'Giving It Away (for Fun and Profit)'.

I especially like this:

How a Sharing Economy might work

1 Sharon records "Sharin' da Love" using her guitar, her PC, and a few beats she downloaded from the Internet.

2 Sharon uploads "Sharin'" and attaches a Creative Commons license that allows free downloads and noncommercial use.

3 Thousands of people download an MP3 of the song. Some send it to their friends, and Sharon's reputation starts to grow.

4 Audiophiles buy higher-quality MP3s. An ad agency licenses the song for a commercial. A producer hires her to write a new song.

5 A record label, noting the buzz, releases a "Sharin'" remix under full copyright, earning revenue for both the label and Sharon.

6 Free content expands the audience for digital music, boosting demand for computers, software, and Internet services.

Free books in Mexican train stations

I heard a fascinating story on NPR the other day. The government in Mexico is distributing short stories in train stations in the cities to try and curb crime. They're hoping that young trouble makers will be too engrossed in reading to hassle commuters. The books can be read freely as long as they are put back on the shelves in the station.

Government officials say that the initial results have been very positive, but the most unexpected effect is that people feel really empowered by the fact that the government trusts people to put these books back onto the shelves. In Mexico, nothing is lent on the premise that it will be given back - people are assumed to be thieves. Turning this around has given people a great sense of confidence. The result? 70% of the books return to their shelves and Mexican authors, although they're only paid a once-off fee for their work ($600), have gained a market that they had previously given up on.

The intracacies of the gift economy do not cease to fascinate and amaze me.