Potential Topic: Freemium Open Access

[1] Intro: One of the fundamental rationales underlying the need for open access of zero-marginal cost goods is that it's in the interest of justice

[2] Question: But does justice demand that the experience of accessing the information be equal? Does open access = equal access?

[3a] Illustrative Examples:

• Reading Shakespeare for free as a text file online, v. buying a leather bound edition for $30
• Boston.com (Trashy) v. Typographer's-dream (Bostonglobe.com): SAME content, vastly different experiences.
• MIT OCW v. attending MIT
• Downloading the source code and self-installing v. Paying a consultant to install and configure

[3b] NOT freemium:

• NYT paywall, 30-day software trials, etc.
• Difference here is that the "premium" versions of these services offer content and/or access that is not available to non-paying users. In my contemplated system, the access to the fundamental content should be the same.

[4] Proposal: Perhaps a good way to make core information available to everyone, yet preserve free-market esque revenue streams that can

1. fund the costs and incentivize the efforts of further development,
2. incentivize people/users towards upward mobility
3. add more thoughts here,

is to encourage a tiered system that requires people to give away the core information for free, but allows them to charge for the bells & whistles

[5] Problems

• Is this a sustainable model for key industries - music, movies, where 90% of the value is just the file itself? (Former Rep. Bob Ingles said in a talk I went to last week - "Sustainability means profit")
  • Is it possible to maintain systems where the "premium" version doesn't = premium access to content? At which point do services become or = content?
  • How would this work for software, particularly expensive software like Adobe?
• Does this address the justice problem? Just because people have access to information doesn't mean that it's in a form that facilitates them to use it.
• What is the ideal equilibrium-society that I am trying to promote? (think about this)

-- By CrystalMao - 14 Oct 2011

In assessing my examples, perhaps I need to distinguish between a "premium" version that has been transformed into a MC / 0 product (e.g., an MIT education, a physical book) , vs. premium versions that are still MC = 0 (Bostonglobe.com with improved layout and no ads). Does this distinction matter? Is it unethical to restrict access for premium versions that are MC=0, even if the underlying content is available for free?

--By CrystalMao - 18 Oct 2011

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Comment:

First, I think a system that requires "core" information to be given freely but allowing creators to charge for "bells & whistles" could work in theory. But, the problem with implementing a system like this might be defining core vs. not core. With free software, seemingly no money is derived from distributing the product itself - its free. But, my understanding is that, as you noted, a lot of companies charge for perhaps consulting on how to use the software, and how to set up the software. Free software, as you mentioned in class, is not readily usable by people who aren't technologically savvy and thus need others to help them learn. Many companies charge for these services. But shouldn't that service be considered part of the core or not part of the core. Free software is only good if you are able to use it so it is essential for many that they get that service. Thus it could be deemed "core." But, its technically not the software itself but rather what you might consider a premium (something on top of the core software). So, if this system is to work, there needs to be a good way of defining what is core vs. not core. I think you thought about this when you said "at which point do services become or equal content."

Further, if people are only going to make money by charging for bells and whistles, might not this lead to a system in which people derogate from the core and make content part of the non-core (by whatever method) in order to make more money? What in the system will prevent them from doing this?

I think that this system can work - if what's important to us is getting as much information to as many people as possible, for the lowest cost possible, then the core information really is what matters. If people want premium, they can pay for it. But the fact that something is a premium means it is extra, it is on top of the core information we truly care about. So even if we charge for the premium, even its MC=0, i don't think that's an injustice. If people want extra, they can pay for it. Since its extra, there is less demand for it and the price might go down to close to 0 or even 0 in some circumstances. The system you are proposing really relies on the definition of core vs. not core, and how we are to prevent creators from abusing these definitions to maximize profit.

-- AustinKlar -- Oct 19 2011