The Economics of Giving It Away - WSJ.com - 0 views
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In other cases, the same digital economics have spurred entirely new business models, such as "Freemium," a free version supported by a paid premium version. This model uses free as a form of marketing to put the product in the hands of the maximum number of people, converting just a small fraction to paying customers. It's an inversion of the old free sample promotion: Rather than giving away one brownie to sell 99 others, you give away 99 virtual penguins to sell one virtual igloo. (Confused? Ask a child: This is the business model for the phenomenally successful Club Penguin.)
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The explosion of all types of video content on YouTube and other sites is quickly transforming online video from a medium strictly for entertainment and news into one that is also a reference tool. As a result, video search, on YouTube and across other sites, is rapidly morphing into a new entry point into the Web, one that could rival mainstream search for many types of queries.