Quote:
Originally Posted by mynameisjim
It's sort of like the Craigslist argument. Yes, Craigslist makes millions for a few people, but it ruined a newspaper industry worth billions that employed thousands of people around the country.
That's the problem with the free economy. It shrinks the REAL economy. Instagram employs 10 people, the owner got 400 million of that billion dollar price tag. The success of Instagram as a startup helps absolutely nobody. In the old days when startups were companies like Apple or Microsoft, they actually employed people and contributed to the economy.
It's pretty simple, the economy is based on the amount of money flying around. When things are free, there is less money flying around for everybody. It might be nice to get your apps for free and download a free song, but you can't find a job. Outsourcing is very similar. I can start a company with 5 people in a small office, do all my production offshore and make millions even though I really don't contribute anything to the economy.
I'm not saying it's right or wrong, but that's the real economics of it. Yes, a few people can make billions, but it shrinks the economy for everyone else. Of course, that doesn't matter to the GFY geniuses because they are all inventing the billion dollar apps.
Of course, the adult industry was also hit by the "freemium effect", but I guess that's different...lol
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Craigslist ruined the newspaper industry... really? So it wasn't the switch from print to digital media? Facebook buying this company means it is rolled into the animal that is Facebook. This will mean more time and effort will be spent on the product. Making more jobs for people as Facebook grows. Many newspapers now charge to view their content online and this is down to education of the consumers who think digital goods should be free!
The app market as a whole depends on millions of developers all across the globe working hard to find success. Since the start of app revolution the amount of software companies that now exist is amazing. The advancements in the mobile billing space will soon be clear to see which is largely down to potential of the app market. Then you have a lot of ad networks that sell the space on all these apps. Apps are being stolen or a better term would be copied and these copies are getting into the app stores. I do feel that this is not happening on a mass scale and i hope it stays this way.
I am not looking for an argument
but watch this video and maybe you can see my points more clearly. I think the we have had been hit the hardest when it comes to freemium but the app market is miles away from what happened in adult so comparing the two for me makes no sense at all!