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Mobile Free Attack - Riverphonic


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How to compete with a Free Attack in Mobile. From the Oct. 09 iBreakfast.

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Mobile Free Attack - Riverphonic

  1. 1. When FREE Attacks your Phone Tim Fielding iBreakfast FREE Attack Panel 7 th October 2009
  2. 2. Digital Supply Chain <ul><li>“ Price descends to marginal cost” </li></ul><ul><ul><li>Duplication = 0 </li></ul></ul><ul><ul><li>Storage = 0 </li></ul></ul><ul><ul><li>Distribution = 0 </li></ul></ul><ul><ul><li>Bandwidth = 0 </li></ul></ul><ul><ul><li>Processing = 0 </li></ul></ul><ul><ul><li>Total Marginal Cost = Price = 0 </li></ul></ul><ul><li>Old joke: Why is it called a virtual economy? Because there is virtually no money in it. </li></ul>
  3. 3. Converged device hits the sweet spot? Real Physical Walled $ Value Virtual Digital Open Free
  4. 4. Taxonomy of FREE <ul><li>Fremium (and Fremium*) </li></ul><ul><li>Ad-supported, </li></ul><ul><li>Cross-Subsidies, </li></ul><ul><li>Gift Economy, aka Altruism </li></ul><ul><li>Labor-exchange, aka Time-bartering </li></ul><ul><li>Zero-Marginal cost </li></ul>
  5. 5. Full FREE or FREE Lite? <ul><li>Going beyond FREE as a marketing tactic </li></ul><ul><ul><li>Mark Cuban @ Future of Media panel: “Good for crack dealers, good enough for MTV.” </li></ul></ul><ul><ul><li>TF promoting @ iBreakfast </li></ul></ul><ul><li>Is the FREE Attack </li></ul><ul><ul><li>A full scale disruption of a paid model? (Full) </li></ul></ul><ul><ul><li>Or is it selling a competitive paid model? (Lite) </li></ul></ul><ul><li>Lite is a progression. Full is a radical evolution. </li></ul>
  6. 6. Controlling the conversation <ul><li>Gmail attacks Outlook </li></ul><ul><li>Facebook attacks Gmail </li></ul><ul><li>Twitter attacks Facebook </li></ul><ul><li>Vodafone attacks itself with Twitter’s help </li></ul><ul><li>Google Wave attacks everyone – Weapons of Mass Dissemination </li></ul>
  7. 9. Differentiating banking services
  8. 10. Must-have mobile medical solution
  9. 11. Portable radio – Pandora &
  10. 12. Interrupting the DJ <ul><li>Shazam: </li></ul><ul><li>From real world to digital </li></ul><ul><li>Ad-supported </li></ul><ul><li>Up-sells Content </li></ul><ul><li>Collaborative filter </li></ul>
  11. 13. Craigs/Yelp vs Classified/Zagat <ul><ul><li>Commoditized content </li></ul></ul><ul><ul><li>Mash-up of Google Maps </li></ul></ul><ul><ul><li>Editorial voice + community + fit to platform </li></ul></ul><ul><ul><li>Analogous to restaurants where crowd provides atmosphere </li></ul></ul>
  12. 14. You can’t crowdsource ‘tone of voice’ <ul><li>Or can you? </li></ul>
  13. 15. Buzzd, the Location-based Twitter <ul><li>Google map mash-up </li></ul><ul><li>Ad-supported </li></ul><ul><li>Local ads conflict with Content? </li></ul>
  14. 17. Moral of the story <ul><li>‘No money’ does not equal ‘no value’ </li></ul><ul><li>Digital can capture non-monetary value </li></ul><ul><li>FREE implies an alternative currency </li></ul><ul><li>To know your enemy, understand how they are getting paid. </li></ul>
  15. 18. To be continued on Wednesdays @ Cantina Latina – 243 E14 st / 2 nd Ave, 8.30pm onwards
  16. 19. Thank You! [email_address] 718 755 1686