Economia

6/7/2009 - Free, lo nuevo de Chris Anderson

Una reseña publicada en The Observer sobre el nuevo libro de Chris Anderson, Free. Gran review, mal por Anderson quien no profundiza en mayor evidencia empírica para explicar sus pronósticos de la economía en Internet.

A. 

The Observer, Sunday 28 June 2009
Who pays the price of a free-for-all?

Chris Anderson is a guru of the information age. Under his editorship, Wired, the voice of the digital world, has won zillions of prizes. His speeches on the economics of the internet command vast sums. He's a brilliant journalist; I know that, having worked with him before he was a big shot. But it is as an author that Anderson has gained most fame. He writes, broadly, about how digital technology has made the world a better place. His first book, The Long Tail, was hugely influential. In the bricks-and-mortar world, it said, in which the costs of marketing and distribution are high, companies make money by selling vast quantities of a few blockbuster items. In the digital world, in which the costs of marketing and distribution are low, companies can make money by selling small numbers of lots of different items.

This idea appealed to everybody. Business people liked it because it seemed to explain to them what to do about the baffling business of the internet. Creative people liked it because it implied that they had a better chance of making money from their slim volumes and weird music that hardly anybody wanted to buy. Cultured people liked it because it implied that book, music and film buffs would be able to enjoy not just the latest blockbuster, but also the German philosophy, 18th-century folk songs and expressionist movies that make up the long tail of the distribution curve. It's a great idea and an optimistic one. Unfortunately, data have recently emerged that seem to undermine it. An analysis last year in the Harvard Business Review of online music and movie retailing suggests that it is just as dominated by blockbusters as is offline retailing.

Free is another examination of how digital technology is changing life and business, this time through the spread of what the book's subtitle describes as "a radical price" - zero. Businesses based on offering free stuff aren't new - broadcast television and radio, for instance, entertain viewers and listeners for free in return for their attention - but there's certainly more free stuff around than there used to be.

Free stuff is spreading because of one fundamental difference between the bricks-and-mortar world (which Anderson calls the world of atoms) and the digital world (which Anderson calls the world of bits). In the world of atoms, each item is expensive to produce and distribute; in the world of bits, it costs close to nothing. This has all sorts of consequences. Pricing models become infinitely variable. Copying costs almost nothing, so piracy mushrooms. People can create stories, songs and movies and distribute them to other people, gratis. The collapsing costs of production and distribution are both benefiting consumers and killing companies. Wikipedia, for instance, offers the world, the universe and everything in detail to anybody with an internet connection, while destroying the encyclopaedia business. File-sharing has brought costless pleasure to millions while threatening the existence of record companies. Piracy has introduced millions of Chinese to the joys of Hollywood films while making it virtually impossible to sell music, software or recorded music in the country.

Newspapers have two sources of revenue - advertisers and readers - and the internet is taking away both. Advertising works better online than in print: try finding a room for less than £100 a week in a non-smoking, girls-only flat on the Victoria Line on Craigslist, then try the same through print. For readers, news is newsier online and not just because big companies like Google provide it free. People, increasingly, tell each other what's going on: Twitter and Flickr have been the best sources of information and pictures on the Iranian unrest. The migration of advertising on to the internet and the proliferation of free information may be killing the newspaper; many local papers in both Britain and America have shut down. Some of the spread of free stuff was predicted. When the world started to go digital 15 years ago, clever people in the music and film businesses were frightened because they knew how much easier it would make copying. But some of it is entirely unexpected. Wikipedia and open-source software, for instance, are the products of something that has floored economists - that people enjoy doing, and will do for free, all sorts of things that other people regard as work.

In this way, and in most ways, the spread of free stuff makes the world a better place. The demise of newspapers is a sad thing, but as the Iranian unrest shows, digital technology is a far better way of spreading information about governments' misdeeds than print is. Technological advance always kills old businesses, as the Luddites knew, but consumers benefit, new companies get created and mankind moves on. Yet there are dangers implicit in new ways of doing things and this book illustrates them.

Free observes an interesting phenomenon, but doesn't take the reader far beyond the notion that there's a lot of free stuff about. It pulls together information about current trends and is dotted with abstruse bits of learning - divergent views of competition among 18th-century French mathematicians, for instance - which seem to be there more to lend the book intellectual heft than to strengthen its arguments. But it doesn't have the weight of a fully worked-through idea. It ends not with a discussion of where this trend is leading but with "50 business models built on free", presumably addressed to the businessmen who may be attending Anderson's speeches on the subject.

The book's weakness may lie in its origins. Like The Long Tail, it started life as a Wired article which Anderson blogged about and people commented on. No doubt there are advantages to having readers contribute to research, but it may be that the old-fashioned method, which requires a lonely author to think hard about an idea, works better in the end. And has Anderson been using free stuff a little too freely? The Virginia Quarterly Review has found similarities, including an erroneous date, between passages in the book and in Wikipedia and other online sources. Anderson attributes these "screw-ups" to his failure to find a good way of citing web sources. He is right that free stuff has made the world a better place, but it has its pitfalls.

• Emma Duncan is deputy editor of the Economist

1/7/2009 - El nuevo socialismo

Este es un excelente articulo. Publicado en el penultimo numero de la revista Wired, Kevin Kelly compara la nueva economia que opera en Internet (software gratuitos, intercambio de contenidos, conocimiento, etc.) con la de un estado socialista. Internet esta desafiando el capitalismo o se complementan?

Si bien hacen falta algunos datos duros como para enfriar el optimismo que se siente al leer sobre las potencialidades de Internet, destaco algunos parrafos.

"How close to a noncapitalistic, open source, peer-production society can this movement take us? Every time that question has been asked, the answer has been: closer than we thought. Consider craigslist. Just classified ads, right? But the site amplified the handy community swap board to reach a regional audience, enhanced it with pictures and real-time updates, and suddenly became a national treasure. Operating without state funding or control, connecting citizens directly to citizens, this mostly free marketplace achieves social good at an efficiency that would stagger any government or traditional corporation. Sure, it undermines the business model of newspapers, but at the same time it makes an indisputable case that the sharing model is a viable alternative to both profit-seeking corporations and tax-supported civic institutions.

Who would have believed that poor farmers could secure $100 loans from perfect strangers on the other side of the planet—and pay them back? That is what Kiva does with peer-to-peer lending. Every public health care expert declared confidently that sharing was fine for photos, but no one would share their medical records. But PatientsLikeMe, where patients pool results of treatments to better their own care, prove that collective action can trump both doctors and privacy scares. The increasingly common habit of sharing what you're thinking (Twitter), what you're reading (StumbleUpon), your finances (Wesabe), your everything (the Web) is becoming a foundation of our culture. Doing it while collaboratively building encyclopedias, news agencies, video archives, and software in groups that span continents, with people you don't know and whose class is irrelevant—that makes political socialism seem like the logical next step.

A similar thing happened with free markets over the past century. Every day, someone asked: What can't markets do? We took a long list of problems that seemed to require rational planning or paternal government and instead applied marketplace logic. In most cases, the market solution worked significantly better. Much of the prosperity in recent decades was gained by unleashing market forces on social problems.

Now we're trying the same trick with collaborative social technology, applying digital socialism to a growing list of wishes—and occasionally to problems that the free market couldn't solve—to see if it works. So far, the results have been startling. At nearly every turn, the power of sharing, cooperation, collaboration, openness, free pricing, and transparency has proven to be more practical than we capitalists thought possible. Each time we try it, we find that the power of the new socialism is bigger than we imagined.

We underestimate the power of our tools to reshape our minds. Did we really believe we could collaboratively build and inhabit virtual worlds all day, every day, and not have it affect our perspective? The force of online socialism is growing. Its dynamic is spreading beyond electrons—perhaps into elections".

El link al articulo completo, aca.

Saludos,

A.

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