Open Source v Open Content Business Models - English version

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Presented at the Universidad Distrital in Bogota, Colombia, as part of the VII Semana Linux of El Grupo Linux Universidad Distrital - October 2008. The Spanish language version is available here: http://www.slideshare.net/Jessicacoates/open-access-v-open-content-business-models-spanish-version-presentation/

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  • The            setup            in            the            video            no            longer            works.           
    And            all            other            links            in            comment            are            fake            too.           
    But            luckily,            we            found            a            working            one            here (copy paste link in browser) :            www.goo.gl/i7K0s4
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  • Open Source v Open Content Business Models - English version

    1. 1. Increasing your value as a product: open source and open content business models Jessica Coates Project Manager, Creative Commons Clinic Queensland University of Technology September 2008 AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    2. 2. Disclaimers <ul><li>I am not an economist </li></ul><ul><li>I am not an open source expert </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    3. 3. Paying for Open <ul><li>Myth – if you release your material under an open access licence you can never earn money for it </li></ul><ul><li>People used to say the same thing about anything released on the internet. </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    4. 4. Paying for Open <ul><li>free as in speech, not as in beer </li></ul><ul><li>business models are developing </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    5. 5. <ul><li>About 20 years old </li></ul>Open Source (software) AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J Always operated in business world About 10 years old Open Content (music, text, images, video) Started with amateur and gift cultures Main customers = private individuals Economics focuses on compensation for existing product Main customers = commercial businesses Economics focuses on funding software production
    6. 6. <ul><li>Volunteers – amateurs, those with other jobs </li></ul>Open Source Contributors AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J Government – public servants developing software eg Brazil, Australia Researchers with grants Specialist OS companies – eg RedHat, Sun Companies using OS – eg HP, IBM, eBAY Volunteers – amateurs, those with other jobs Open Content Contributors Government – public broadcasters, libraries, museums eg BBC, ABC, Powerhouse Museum Researchers with grants Professional Artists – Nine Inch Nails, Knives at Noon Artists using SA material – eg ccMixter
    7. 7. <ul><li>Traditional model = </li></ul><ul><li>mass market </li></ul><ul><li>High cost to make and buy </li></ul><ul><li>Need mass audience to compensate for many failures </li></ul>Software Businesses AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J OS – focuses on providing many products tailored to only a few businesses Main difference between traditional model and OS = adaptability Content Businesses OC – focuses on ‘long tail’ ie many performers selling to only a few fans Main difference between traditional model and OC = distribution <ul><li>Traditional model = </li></ul><ul><li>mass market </li></ul><ul><li>High cost to make and buy </li></ul><ul><li>Need mass audience to compensate for many failures </li></ul>
    8. 8. Non-Commercial – is it a big difference? <ul><li>Almost all OS products allow commercial use; most OC products limited to non-commercial use </li></ul><ul><li>Both still giving away ‘free’ to main customers – for OS this is businesses; for OC this is private individuals </li></ul><ul><li>Redhat, Sun, Novell etc have premium ‘enterprise’ models – charge higher for ‘business’ level support, warranties etc. </li></ul><ul><li>Commercial for OC = ‘premium product’ </li></ul><ul><li>For OC, less incentive to pay for follow up services/quality, so instead charge for more rights </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    9. 9. Sell yourself, not your product <ul><li>The question to ask is, &quot;What portion of the world knows my brand?&quot; </li></ul><ul><li>- Jonathon Schwartz, COO Sun Microsystems (CNET, Aug 2007) </li></ul><ul><li>Creative Commons is like having 100,000 free publicity officers. </li></ul><ul><li>- Pete Foley, Black brow ( http:// wiki.creativecommons.org/Black_brow ) </li></ul><ul><li>My fans' tireless evangelism for my work doesn't just sell books - it sells me . </li></ul><ul><li>Cory Doctorow, author (Forbes, Jan 2006) </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    10. 10. Payment <ul><li>Can be: </li></ul><ul><li>direct eg purchase, advertising </li></ul><ul><li>in-direct eg increased traffic, hyperdistribution </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J <ul><li>Can be provided for: </li></ul><ul><li>product eg book </li></ul><ul><li>‘ added value’ eg searchability </li></ul><ul><li>aftermarket service eg maintenance </li></ul><ul><li>publicity eg ads </li></ul><ul><li>Can be provided by: </li></ul><ul><li>consumers eg pay-per-use </li></ul><ul><li>producers eg vanity press </li></ul><ul><li>third parties eg advertisers </li></ul>
    11. 11. Promotional tool AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    12. 12. Cory Doctorow <ul><li>Books published by Tor Books as both hardcopy and e-books under Creative Commons BY-NC-SA licence </li></ul><ul><li>First book had 30,000 downloads in first day </li></ul><ul><li>Last book, Little Brother , on NY Times best seller list for 4 weeks </li></ul><ul><li>Hundreds of derivative works – translations, audio-books, covers, software projects </li></ul>AUSTRALIA part of the Creative Commons international initiative “ The Internet not only sells more books for me, it also gives me more opportunities to earn my keep through writing-related activities.”
    13. 13. Advertising supported AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J
    14. 14. Revver <ul><li>Video sharing site with embedded advertising – money split 50/50 with creators </li></ul><ul><li>All videos under Creative Commons BY-NC-ND licence – to allow for maximum distribution </li></ul><ul><li>Success story – Eepybird.com’s “Extreme diet coke and mentos experiment” - watched over 6 million times; made US$30,000 in first year </li></ul><ul><li>Now hosting other popular video series, previews etc - eg Lonelygirl15, “ask a ninja” </li></ul>AUSTRALIA part of the Creative Commons international initiative
    15. 15. Charging for premium service AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J +
    16. 16. Beatpick <ul><li>‘ Fairplay’ music label </li></ul><ul><li>All music downloadable DRM free under Creative Commons BY-NC-SA licence </li></ul><ul><li>Sells ‘high quality’ downloads </li></ul><ul><li>Negotiates ‘commercial’ licences </li></ul><ul><li>Success story – “Memories Child” by Jamison Young (Australian musician) licensed for “The X-Files: I Want to Believe“ feature film </li></ul><ul><li>Has also licensed material for ads, video games, corporate events, political campaigns </li></ul>AUSTRALIA part of the Creative Commons international initiative
    17. 17. Thanks <ul><li>http:// www.creativecommons.org </li></ul><ul><li>http:// www.creativecommons.org.au </li></ul><ul><li>[email_address] </li></ul>AUSTRALIA part of the Creative Commons international initiative CRICOS No. 00213J This slide show is licensed under a Creative Commons Attribution 2.5 Australia licence. For more information see http://creativecommons.org/licenses/by/2.5/au/ .

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