When FREE Attacks your Phone Tim Fielding iBreakfast FREE Attack Panel 7 th October 2009

Digital Supply Chain “ Price descends to marginal cost” Duplication = 0 Storage = 0 Distribution = 0 Bandwidth = 0 Processing = 0 Total Marginal Cost = Price = 0 Old joke: Why is it called a virtual economy? Because there is virtually no money in it.

“ Price descends to marginal cost”

Duplication = 0

Storage = 0

Distribution = 0

Bandwidth = 0

Processing = 0

Total Marginal Cost = Price = 0

Old joke: Why is it called a virtual economy? Because there is virtually no money in it.

Converged device hits the sweet spot? Real Physical Walled $ Value Virtual Digital Open Free

Taxonomy of FREE Fremium (and Fremium*) Ad-supported, Cross-Subsidies, Gift Economy, aka Altruism Labor-exchange, aka Time-bartering Zero-Marginal cost

Fremium (and Fremium*)

Ad-supported,

Cross-Subsidies,

Gift Economy, aka Altruism

Labor-exchange, aka Time-bartering

Zero-Marginal cost

Full FREE or FREE Lite? Going beyond FREE as a marketing tactic Mark Cuban @ Future of Media panel: “Good for crack dealers, good enough for MTV.” TF promoting www.Riverphonic.com @ iBreakfast Is the FREE Attack A full scale disruption of a paid model? (Full) Or is it selling a competitive paid model? (Lite) Lite is a progression. Full is a radical evolution.

Going beyond FREE as a marketing tactic

Mark Cuban @ Future of Media panel: “Good for crack dealers, good enough for MTV.”

TF promoting www.Riverphonic.com @ iBreakfast

Is the FREE Attack

A full scale disruption of a paid model? (Full)

Or is it selling a competitive paid model? (Lite)

Lite is a progression. Full is a radical evolution.

Controlling the conversation Gmail attacks Outlook Facebook attacks Gmail Twitter attacks Facebook Vodafone attacks itself with Twitter’s help Google Wave attacks everyone – Weapons of Mass Dissemination

Gmail attacks Outlook

Facebook attacks Gmail

Twitter attacks Facebook

Vodafone attacks itself with Twitter’s help

Google Wave attacks everyone – Weapons of Mass Dissemination

Differentiating banking services

Must-have mobile medical solution

Portable radio – Pandora & Last.fm

Interrupting the DJ Shazam: From real world to digital Ad-supported Up-sells Content Collaborative filter

Shazam:

From real world to digital

Ad-supported

Up-sells Content

Collaborative filter

Craigs/Yelp vs Classified/Zagat Commoditized content Mash-up of Google Maps Editorial voice + community + fit to platform Analogous to restaurants where crowd provides atmosphere

Commoditized content

Mash-up of Google Maps

Editorial voice + community + fit to platform

Analogous to restaurants where crowd provides atmosphere

You can’t crowdsource ‘tone of voice’ Or can you?

Or can you?

Buzzd, the Location-based Twitter Google map mash-up Ad-supported Local ads conflict with Content?

Google map mash-up

Ad-supported

Local ads conflict with Content?

Moral of the story ‘No money’ does not equal ‘no value’ Digital can capture non-monetary value FREE implies an alternative currency To know your enemy, understand how they are getting paid.

‘No money’ does not equal ‘no value’

Digital can capture non-monetary value

FREE implies an alternative currency

To know your enemy, understand how they are getting paid.

To be continued on Wednesdays @ Cantina Latina – 243 E14 st / 2 nd Ave, 8.30pm onwards

Thank You! [email_address] 718 755 1686