What if Atlas Shrugged?

08 Dec 2009

atlas shrugged Editors Note: I wrote this post just before the fabulous James at Men with Pens published a piece on Sweatshop Blogging, but thanks to the discussion in the comments, I’ve decided to not only publish this piece, which I was hesitant to do, but to also create a series of posts on the “Freemium” membership model. This post is merely to spark debate, so I hope you brought your game face.

I’ve been reading Atlas Shrugged lately, and although I’ve yet to finish it, I can’t help but to see it influence my thoughts and actions in the past few days. If you haven’t read it, it’s another Ayn Rand book, this time about what would happen if the greatest thinkers and creators in the world all went on strike.

It’s a fascinating concept, and one that I didn’t fully comprehend until I got about 60% of the way through the book. But, from then on, I was hooked.

We are dependent on free information

In thinking of parallels between that world and the world we now occupy, I was reminded of something that many of us take for granted. As both bloggers and consumers, we rely on information, most of it free, to shape our world, educate, and enlighten us.

In Atlas Shrugged, it was the creation of a leech like government that forced the workers to strike, but in this day and age, I can almost see it coming in an entirely different, albeit just as sneaky, manner.

Everything wants to be free

We’re obsessed with free. Content marketing is the buzz word. People say that information wants to be free. Music wants to be free. Films want to be free. I can’t say that I disagreed, at least in the past.

But as I thought about it, I realized that I’ve been taking these things for granted. This belief that everything should be free, has slowly created a mindset of entitlement. People fume at the thought of Rupert Murdock closing his content to Google and charging for news. Blog readers get extremely defensive and agitated at the first sight of premium content. Many people simply refuse to pay for music, even though it enriches their lives.

Suppose Atlas would actually shrug

And it got me thinking…what if these people that do such great things for our society…these creators…were to suddenly go on strike? What if musicians got so tired of being ripped off that they stopped making music? What if bloggers quit building blogs and stopped writing all together.

How would we respond? Would we realize our misjudgments and pony up the cash, or would we back ourselves in to a corner and defend our stance like a starving dog?

Who’s to say that we really are entitled to free content? I mean, I write here for free, and I enjoy it (honestly, I’m not complaining), but what is it that gives people the authority to demand the fruits of someone else’s labor, not for a discount, but for free?

We feel entitled to refunds on anything, even though we used the product. We walk into a bookstore and read a novel while consuming free internet and ice water. Believe me, I’m not innocent either.

I don’t want to get into a debate of damnation, as it isn’t my place to do so, but these questions bother me and I wonder if they bother you as well?

Everything is free, and it’s great. We all live in harmony, but what happens when people stop giving things away and quit entirely. Is it more beneficial to pay for consistently great content than to rely on Twitter or Facebook for news? What happens when the first breaking story on Twitter becomes a lie? What happens when someone gets sued for a Tweet that got taken the wrong way?

We’re at a stage in this world of content that resembles the wild west. There aren’t any rules because everyone has a hand in the game. Eventually though, things will even out, and these things we take for granted might be taken from us.

What do you think? Am I insane and paranoid or do we really take these things for granted. I’m eager to hear your thoughts, as long as you agree with me (of course I’m kidding!).

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Kavka

The whole point of the book is that the free market should exist, free and clear of the ties that bind productivity and innovation.

Take Facebook for example.

Someone literally made millions from a free forum of communication, thereby creating a "digital sharecropper" module in which all the participants give content as a means to fulfill their need to connect, while the medium reaps the Advertising rewards.

People can try monetize anything, either threw cunning or force, and the Market will decide their success.

I think the true meaning of Atlas Shrugged is that thinkers going on strike, not monetizing their efforts, would be the true disaster.

Like at Deiss.Look at Kern. These guys did not invent these words or methods, but they have such a great Brand, that people will pay for their words, thoughts, and methods in a package.

No. We don't owe the Market anything, and it owes nothing to us.

If one reads a book in a book store without they become that percentage that the publisher factors into his business plan.

I totally disagree with this:
Eventually though, things will even out, and these things we take for granted might be taken from us.

I think that is a blanket comment, designed to sew up the future at the end of a post. Things may NOT "even out" It's up to the thinkers to survive and the "Looters" to rot.

-Kavka

Nathan Hangen

Sorry, but I'm a Karma guy, so that happens to be my belief. May not be right, but we'll find out some day right?

Aside from that, I think the situation I'm referring to...which is this declaration of free, will settle down and them market will find a middle road.

Attorney Optimization

Is the Book Atlas Shrugged a good book?

Nathan Hangen

It's a fantastic book. A long read, but a good one.

Gordie

Hi Nathan,
Thought provoking post.

Let's look at the music example. The musicians worked very hard and were very creative and the record companies got rich. What the Internet is doing is basically wiping out the middle man in a lot of cases. People who didn't add as much value as they claimed to be adding. e.g. the record companies.

However, I think that everyone expects music for free is totally wrong. Music is a product which costs it's creators time, money and energy. The Internet allows us now, like Mike said, to buy what we think is the best music directly bypassing the record companies saving us so much money. I think it's just greedy for us to expect it for free. Music is a commodity that musicians mainly create to help them earn a livelihood.

What do you think?

Nathan Hangen

I agree that the middle man being gone is a good thing (unles you're a middle man), but I also don't think that it helps those artists that are new or struggling to get heard. Big bands don't have a problem, but smaller ones are.

There are some artists, like Dave Matthews and NIN that do a good job of monetizing collectors editions and other merchandise. It will be interesting to see how this plays out over the next few years.

Brett Legree

I don't know.

There was no internet, and thus, no blogging, prior to 6 August 1991. We discovered fire, invented the wheel, built the pyramids, crossed oceans to discover new worlds, created nuclear power, landed on the moon... heart transplants... all kinds of medical advances...

All kinds of art and music were created. It all existed prior to the internet. Some people paid for it, some did not.

The rise of the internet and the development of tools made it a lot easier for people to create content and share it with the world. Of course, it also made it a lot easier for people to take it without paying.

Perhaps we need to work on figuring out a way to adapt to this (not so new anymore) new world.

Put another way, if you're giving something away to me for free, and you start charging for it, if I think it is worth paying for, I'll pay for it. If I don't, no deal.

So why not try to figure out a way to charge for it?

Believe me, I know what you're saying - I consume a lot of free information too.

Do you know what would happen in my case if suddenly every blog charged $5.00 a month to subscribe?

Yep. I'd subscribe to maybe one or two, and I'd fill the rest of my time creating something of value myself.

Hmm.

Maybe that's my problem. Maybe I need to stop consuming all of this great free content, pretend it isn't free, and get on with my life :) you know, climb Mt. Everest, move to New Zealand etc.

BTW - good post.

Nathan Hangen

You're absolutely right, and the world is moving so fast these days that we usually adapt after the fact, which is why I think this freemium model might see some changes.

For instance, my blog is available on Amazon for a buck, but that's because Amazon makes me charge for access to it in that manner. Otherwise, everything is free. However, I have a few ideas that I'm going to flesh out for an update on Thursday.

Like you said, if everyone charged 5 bucks/month, we'd quickly move to a small amount of trusted resources and ditch the rest. Maybe it is time we start living more :)

Brett Legree

I'll look forward to your Thursday post - this is a subject that really interests me. We are able to adapt very quickly to the conditions of the market, if we allow ourselves to do so.

It just takes a little courage and imagination, I figure.

Nathan Hangen

Courage is a large part of it!

mxrios1

As an American that is currently living abroad, I agree with Rich Lazarro's comment about Americans being susceptible to having a strong sense of entitlement... oftentimes without earning any of it. I don't see this sense of entitlement in others around me... unless they are rich and obnoxious.

However, I don't completely agree that so much content should be free. Today's post was a very thought provoking post, and it does indeed make one wonder wHAT WOULD WE DO???? Really... what would happen if the theory of Atlas Shrugged came true? We probably can't imagine or conceive of this because of our damn sense of entitlement :)

In any case, I read only 50% of Atlas Shrugged years ago and interestingly enough I just recently started thinking of starting if over. For some reason I have the odd desire to read the collection backwards from its publishing dates: Atlas Shrugged, Fountainhead, then We the Living..

Great post... interesting topic that will surely bring a very wide variety of opinions!

Nathan Hangen

Thanks for the comment. I'm with you, in fact I feel guilty sometimes for taking so much for free. If everyone quit, it would be a very interesting situation.

The entitlement thing is almost second nature, because it happens so fast and so often. I'm going to try and be more conscious of it myself. Almost done with the book now, you should definitely read it again :)

Rich Lazzara

You know Im gonna comment and disagree.

Entitlement is a big problem that we as a society struggle with. Having traveled the world I can tell you that Americans are particularly susceptible to this "cancer".

With that being said though I find it a bit presumptuous on many peoples parts to assume that the content they create is worthy of monetization. Let's face it, it's not.

Content "wanting" to be free is misleading. Content obviously cant want anything, society though does want things for free (content or other). This is an inherent trait in humanity. You arent going to change that.

The thing you have to focus on is creating a compelling enough proposition that someone is willing to pay for it. And the biggest problem with blogging content is that their is an abundance of it.

Scarcity = Value. The more scarce the content/product the higher the value.

It's a challenge that isnt unique to the blogging world. Look at mobile carriers. My first cellphone was a Motorala for $1,200. Today? Here is a free phone (or subsidiezed) in return for a two year contract. The abundance leads to new business models.

"Bloggers" are going to continue to evolve how they monetize their content. As a lifestyle designer perhaps the Nathan Hangen home furnishings, clothing line, design school, resort, investment fund, etc etc is just around the corner??

What's going to be interesting to watch in the coming years is how this model moves into industries that historically haven't had to operate this way.

Why cant I get a free car so long as I buy the insurance, gas (electricity?), maintenance and accessories from that company? I suspect you will see that soon enough.

I know you well enough to know your not complaining and I really enjoyed this thought provoking piece! To show my appreciation for it Ill buy you a beer the next time I see you. No more "free content producer" for you ;)

Nathan Hangen

Oh, and by the way, it's me who owes you a beer, or a handful as it stands now :)

Nathan Hangen

I'm glad you disagreed. In fact, I hoped you would :)

I like what you said about cell phones - many people would be shocked if they were told they had to pay for their next phone. Similar thing happens when new iPhones come out and everyone wants it for free.

The car idea is something I haven't thought about, and depending on the margins, I think it could work.

I'm curious though, how many musicians are being shut down because of this? What about budding authors? Bloggers have a very hard time standing out, and even moreso charging for content.

I don't have an answer, but I think it's worth discussing.

Mike CJ

Interesting debate this. And I think the "freeline" is skewed too far towards the consumer at the moment.

We've seen in the music industry that we've gone from $15 CD albums, through free downloads, to a more sensible pricing policy for "legal" downloads.

And I think the same will happen with blogging and news. We'll move the freeline so that people get a decent amount of free content, with those with a particular interest being prepared to pay a reasonable amount for more.

The biggest strength of the internet is that it allows us to pick and choose what we want and do so in small chunks. So I can now buy the three tracks I really like on a latest album, and I can buy the slightly more in depth road test of a car etc.

Nathan Hangen

That's true Mike, and when you buy music like that, it gets filler content out of the equation. I can see blogs becoming like that at some point. But then, the pressure is on!