Umair Haque / Bubblegeneration
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Saturday, May 28, 2005


More NYTSelect

I know, I know, you're sick of hearing about it. But bear with me for a sec.

The more I thought about it, the more I've come to the conclusion, that, just like the RIAA's replication wars have been the case study for digital strategy 1.0 (what not to do - sue your consumers for sharing), NYTSelect will be the same thing for digital strategy 2.0 (what not to do - charge your consumers for connected consumption).

The basic premise is that I think the NYT's analysis tells them that charging for access will essentially limit the supply of NYT content, and prices will get bid up for syndicators (ie, those that republish/discuss their content).

So, essentially, those people who pay for it also stand to realize a return. Hence, the NYT's affiliate program; in this analysis, no complementarity value (ie, discussions) is lost, because it's factored in via the notion of return for syndicators.

Now, this is interesting (to me, at least), because it's premised strictly on equilibrium economics - static demand and supply.

Now, if all the nonsense I've been spouting recently about complementarity and openness is actually right, then NYTSelect should fail miserably, because their analysis leaves out the kinds nonlinear dynamics complementarity creates - things like increasing returns and path dependence, which complicate life by creating multiple equilibria.

Sorry - last NYT post for a verrry long time.

-- umair // 2:02 PM // 0 comments


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