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clipped from thefutureofnews.com

How can news outlets make money while giving news away free? “Long Tail” author provides a glimpse. 2/25/08

Chris Anderson is not the author of “Freakonomics,” but you could say his upcoming book is about “freeconomics.” According to Advertising Age, his next book after his tech bestseller “The Long Tail” will be about how to make money by giving stuff away free on the web. Many are now trying to do just that with varying degrees of success, including Yahoo!’s email, Google’s search, Wikipedia, Craigslist, and various video and music downloading sites.

In an interview, Anderson describes three different business models for “free”: 1) the “razor/razorblade” model in which something that costs real money is given away, while cross-subsidized by another sale (e.g. razor/razorblade, printers/cartridges, TV programming/advertising);
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