1. Copyright 2000-2006 1 A 'Fair Go' for Creatives in a Digital Environment Roger Clarke Xamax Consultancy, Canberra Chair, AEShareNet Limited & Visiting Professor at A.N.U., Uni. of Hong Kong, & the Cyberspace Law & Policy Centre, U.N.S.W. http://www.anu.edu.au/people/Roger.Clarke/...... /EC/DFG0603 {.html,.ppt} AEShareNet seminar on Making the Most of Creativity: In the Public Interest! Customs House, Sydney – March 2006

2. Copyright 2000-2006 2 What eBusiness Models work for Creatives? Whats an eBusiness Model? Its an Answer to the Question: Who Pays? For What? To Whom? And Why?

3. Copyright 2000-2006 3 A Business Models on the Web Taxonomy Rappa – digitalenterprise.org/models/models.html Brokerage Marketplace Exchange, Buy/Sell Fulfilment, Demand Collection, Auction Broker, Transaction Broker, Distributor, Search Agent, Virtual Marketplace Advertising Portal, Classifieds, User Registration, Query-based Paid Placement, Contextual Advertising, Content-Targeted Advertising, Intromercials, Ultramercials Infomediary Advertising Networks, Audience Measurement Services, Incentive Marketing, Metamediary Merchant Virtual, Catalogue, Click&Mortar, Bit Vendor Manufacturer (Direct) Purchase, Lease, Licence, Brand Integrated Content Affiliate Banner Exchange, Pay-per-click, Revenue Sharing Community Open Source, Public Broadcasting, Knowledge Networks Subscription Content Services, Person-to-Person Networking Services, Trust Services, Internet Services Providers Utility Metered Usage, Metered Subscriptions

4. Copyright 2000-2006 4 Internet-Era Business Models Lessons from Open Source and Content Who Pays? FOR WHAT? To Whom? And Why? Goods & Services Value-Added Goods & Services Complementary Goods & Services Infrastructure After-Sales Service Data Information Expertise / Knowledge An Idea in Good Standing Timeliness Quality

5. Copyright 2000-2006 5 Internet-Era Business Models Lessons from Open Source and Content Who Pays? For What? To Whom? AND WHY? Resource Control Switching Costs (capture, lock-in) Perceived Value Cost Advantage Quality Advantage

6. Copyright 2000-2006 6 Lessons about Open Content eBusiness Models Sales Revenue: Direct, Immediate Reciprocity Indirect and/or Deferred Reciprocity Revenue from Complementary Services Reputation A Fairy Godmother / Patronage

7. Copyright 2000-2006 7 Sales Revenue Direct, Immediate Reciprocity Volume Sales at low rates per access or copy Differentiated Services for higher prices (taking into account short shelf-life) Indirect and/or Deferred Reciprocity Advertising Shareware – use now, maybe pay later (esp. for breakthrough for new artists, genres)

8. Copyright 2000-2006 8 Revenue from Complementary Services Installation Customisation Education and Training Consultancy Network-building Search for Network Effects Viral Marketing The After-Market Accessories Upgrades Enhancements Extensions Replacements

9. Copyright 2000-2006 9 Open Content Business Models How? Reputation Reputation-Establishment Reputation-Building Reputation-Maintenance Collateral Papers Postings Blogs

10. Copyright 2000-2006 10 Open Content Business Models How? A Fairy Godmother Subsidy / Patronage Funding from external sources Deprecated as a gift, unless market failure Cross-Subsidy Funding from internal sources Deprecated (but less so), because its distortive Portfolio Approach Mutual Cross-Funding from internal sources How business works – cash cows fund the rest