Ad-Supported Free Music Downloads Doomed to Failure?
madonna writes "CNET extensively explains why the new We7.com download service — which offers ad-embedded free music downloads without DRM — is doomed to failure. 'This service absolutely, categorically will not succeed. You can quote us on that. It's true the best way to combat piracy is to provide a realistic and affordable alternative, and free is certainly affordable. But music downloaders are not going to switch to using a service that costs the same as using BitTorrent or Limewire, but comes with abominable disclaimers or advertisements.'"
Advertising, fundamentally, is an economic parasite. Advertisers produce nothing of value, and add no value to the products they advertise; any economic model that relies on excessive advertising (more than "I have this product for sale if you are interested", which *does* provide value) is essentially wasteful.
This leaves open the question of how Slashdot et al. will get compensated for their bandwidth, but having to find a way for Slashdot to get paid is a better outcome than having an entire section of the economy doing nothing productive.