Internet piracy
August 20th, 2008
credit: kytomaki
Piracy is not a disease; it’s a symptom.
The business world (in the West at least) needs to wrap its head around this single concept: information is now free. The word “information” includes bits, those 1’s and 0’s flying through fibers across the globe.* If you make a product that is comprised of information such as software, it will be pirated. Always.
This is a Very Good Thing, even for businesses. Since information is free and running everywhere, well, that’s free marketing. If you take a look at the global games industry you’ll see that it’s earning about $10 billion, half of which is from Asia. In Asia, their games are free to play but funded by microtransactions and advertisements. So they encourage people to download and distribute their games!
What about other software like word processors and other desktop apps? Turns out, we don’t like desktop apps. They’re difficult to use and complex in general. The stupid computer crashes and eats everything we had too! A travesty. Hence the move the online apps. Google Docs is perfect for word processing and they will never lose your data — and it’s available anywhere you have a connected computer! They make it easier to share information which fits perfectly with the nature of the beast.
With online software we can also access it on our mobile systems which are only getter more powerful. We’re moving away from our centralized perspective and moving into more open, distributed (and therefore resilient) systems. We’re gradually building computing systems into ambient clouds that follow us everywhere, granting us access to knowledge in a moment’s notice.
This also grants us the benefit of platform agnosticism. It was (and often still is) a huge problem for people to get their stuff from one OS to another without problems. If everything goes online, there’s no platform to mess with at all — just pure 1:1 information transfer that’s fast and near-effortless.
The issue with microtransactions is the fact that it’s a decision. We hate making decisions. We only make them when absolutely necessary, and even then it takes too much effort. It shouldn’t take any effort at all if we’re going to move in that direction, and I think we will because we have too (look at the symptoms).
Good HCI design can solve the decision issue, although it needs to be simple and consistent across products. However, it’s too difficult to make transactions not because of the decision cost but because of the banking cost. We’re going to need institutions that don’t charge transaction fees no matter how small or how big the amount. There’s no reason for it in the first place — it’s just bits going through fiber from one computer to another and another.
Credit cards are already obsolete but the banks don’t know it. Businesses everywhere are having to work around them by using their own currencies. Think of Microsoft Points and airline mileage. This is a huge fucking sign that our monetary system is failing us. But we can’t keep fragmenting our economy with every company using its own system; there needs to be a uniform design so that everyone, from individuals to corporations, can trade money at no cost no matter the amount, effortlessly.
Until that happens, the future business models we need to cure the economic disease will fail.
* Information is not knowledge, it’s just random bits. Knowledge is relevant information.


