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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(c) Riverphonic LLC 2009 1

When FREE Attacks your Phone

Tim Fielding iBreakfast FREE Attack Panel

7th October 2009

(c) Riverphonic LLC 2009 2

Digital Supply Chain

“Price descends to marginal cost” Duplication = 0 Storage = 0 Distribution = 0 Bandwidth = 0 Processing = 0 Total Marginal Cost = Price = 0

Old joke: Why is it called a virtual economy? Because there is virtually no money in it.

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Converged device hits the sweet spot?

VirtualDigitalOpenFree

RealPhysicalWalled$ Value

(c) Riverphonic LLC 2009 4

Taxonomy of FREE

Fremium (and Fremium*) Ad-supported, Cross-Subsidies, Gift Economy, aka Altruism Labor-exchange, aka Time-bartering Zero-Marginal cost

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Full FREE or FREE Lite?

Going beyond FREE as a marketing tactic Mark Cuban @ Future of Media panel: “Good for

crack dealers, good enough for MTV.” TF promoting www.Riverphonic.com @ iBreakfast

Is the FREE Attack1. A full scale disruption of a paid model? (Full)

2. Or is it selling a competitive paid model? (Lite)

Lite is a progression. Full is a radical evolution.

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Controlling the conversation

Gmail attacks Outlook Facebook attacks Gmail Twitter attacks Facebook Vodafone attacks itself

with Twitter’s help Google Wave attacks

everyone – Weapons of Mass Dissemination

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Differentiating banking services

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Must-have mobile medical solution

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Portable radio – Pandora & Last.fm

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Interrupting the DJ

Shazam:

From real world to digital

Ad-supported

Up-sells Content

Collaborative filter

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Craigs/Yelp vs Classified/Zagat

• Commoditized content

• Mash-up of Google Maps

• Editorial voice + community + fit to platform

• Analogous to restaurants where crowd provides atmosphere

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You can’t crowdsource ‘tone of voice’

Or can you?

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Buzzd, the Location-based Twitter

Google map mash-up

Ad-supported Local ads conflict

with Content?

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Moral of the story

‘No money’ does not equal ‘no value’ Digital can capture non-monetary value FREE implies an alternative currency To know your enemy, understand how

they are getting paid.

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To be continued on Wednesdays @ Cantina Latina – 243 E14 st / 2nd Ave, 8.30pm onwards

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Thank You!

tim@riverphonic.com718 755 1686

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