economics

Frustration Friday: Cult Misses

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You'll notice that though I talk economics in this blog, I am careful around the subject of politics.  In some cases, where politics intersects economics (which really is in most cases), I also am cautious about what I discuss.

So for a moment let me throw some caution to the wind and watch it blow away.

I'd like to discuss my caution.

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Frustration Friday: Be a little worried

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Let's not mince words.

The world economy is not in good shape, and the economy that affects you directly, dear readers (mostly US, North America, and UK judging by my records) has problems.  The economic situation for many is at best a recession, and at most a growing catastrophe that still has yet to play out in our lives, bank accounts, and futures.

Yet I meet a lot of people who don't care, or don't pay attention.  Some are in this state due to apathy or indifference.  Others don't care out of ignorance.  The worst are people who are very convinced they know what's going on, and of course are dreadfully wrong.

If you are not at least a bit worried about the economy you are either very well off or wrong.  There's no middle ground here.

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Geekonomics and the Spontaneity Economy

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I've been looking at the world of geekonomics and fannish economics – of video games, anime, movies, sports, and of course, online transactions.

As I write this I've been watching some things I found casually on Netflix, using our X-box (cheesy movie trailers, if you must know).  I was watching them spontaneously.  Come to think of it, I'd maintain my Netflix and X-box subscription just for these opportunities.

Or perhaps we can turn our attention to my gaming habits.  A few demos on the X-box are always amusing, and purchases are cheap.  I've enjoyed many Wii games for only a few dollars.  Best of all, things are not only easy to get but cheap.  A bad purchase is only a few dollars lost.

Very, very easy to be spontaneous.  In fact it's never been easier for so many to get so much so quickly and so easily (if I may wax poetic).

We've got an increased spontaneity economy.  I expect it to increase as well – e-books, web comics, downloadable comics, etc.  Everything is easier and easier to get to – or even try it out.

What does this mean?

  • Demographics are going to get harder.  Spontaneity can distort studies and information on purchasing populations (and it may make long tail calculations harder).
  • Questions of initial sales.  Are initial sales of a product going to be all that reflective?
  • Questions of reason for interest.  Was someone interested in a purchase or was it just easy.
  • Questions of reimbursement.  When spontaneity plays a large (or potentially large) role in the purchasing decisions of people, what is the best way to reimburse producers or share profits?
  • Questions of marketing.  How much did your marketing pay off?  How will you know.
  • Questions of durability.  How easy is retention of an audience when the new shiny things are so easily accessible?

Welcome to the spontaneity economy.

– Steven Savage