Re: net business models

Tom Cunniff (tcunniff_at_the-cia.com)
Fri, 23 Aug 1996 11:22:22 -0400

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George Harris writes:

>I had an interesting phone conversation (...) about what the viable
>business model(s) will be.

>Given the huge momentum of free content on the web I can't see
>subscriptions of (..) the $50 and
>up genre becoming a major factor any time soon.

Yes, there's a ton of free content on the web.

But 95% of that free content is worth what we pay for it -- which is nothing.

Information aggregating services (think TV Guide) and information filtering
services (think Wall Street Journal) make money in the print world because
they provide information of overwhelming value.

If free was the answer to everything, the free listings in local Pennysaver
publications would've driven TV Guide out of business decades ago.

The reason we gladly pay for the ink on paper Wall Street Journal is
because we believe the information in there is worth tens or hundreds of
times what we're paying for it.

The same applies to the Web.

When publishers begin offering information of overwhelming value, we'll all
line up with our checkbooks. What's more, we'll be thrilled to pay for it.

And if advertising makes what we pay free or nearly free? We'll gladly
accept that, too.

Easy business model, right?

Nope. It's incredibly difficult. Which is why so many print magazines have
appeared and disappeared, why so many print publishers go bankrupt, and why
the faint of heart pursue something less dangerous, like bungee-jumping
without a cord :-)

Best regards,
Tom Cunniff
President, CIA
Cunniff Interactive Advertising

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