Krugman & The Grateful Dead

From Krugman’s article in the NY Times:

Now, the strategy of giving intellectual property away so that people will buy your paraphernalia won’t work equally well for everything. To take the obvious, painful example: news organizations… have spent years trying to turn large online readership into an adequately paying proposition, with limited success.

But they’ll have to find a way. Bit by bit, everything that can be digitized will be digitized, making intellectual property ever easier to copy and ever harder to sell for more than a nominal price. And we’ll have to find business and economic models that take this reality into account.

This applies to a lot of industries. Develop a loyal customer base that loves your free content, then offer premium content or side benefits as your primary source of revenue.

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