Music with your free lunch
There ain’t no such thing as a free lunch, unless you can bring in sufficient upstream revenue to offer the product free to the end user. Matchbooks were among the first, but now we have free software, free newspapers, free phone calls, and a whole lot more.
The latest on the scene is Spiralfrog which, as Josephine Moulds reports in the Telegraph, is going to offer free downloads of music to those prepared to tolerate advertsing messages.
Robin Kent, chief executive of SpiralFrog, which will launch in December, said the company was not going head to head with iTunes: “We are not actually competing with the paid, legal download market. We are totally going after the pirated market. We are targeting under-30s, people who are willing to tolerate advertising and get their music for free.”Since current estimates put pirated downloads at 40 percent of the total, they might have a large potential market. Apple’s iTunes has 80 prcent of the legal market, but customers pay 79p per song. In the fascinating world of the free lunch economy, Spiralfrog, aiming to start in December, has to build up a sufficient user base rapidly enough to interest advertisers, while keeping a lid on their costs. You pays your money and you takes your choice. Or you gets it free.
From Adam Smith Institute
Tags: Libertarian, Politics, Liberty, Freedom






