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The corollary—and this is important—is that in order to operate in real time, everything has to flow.
Simultaneity trumps quality.
This sort of just-in-time purchasing is the natural consequence of real-time streaming.
The union of a zillion streams of information intermingling, flowing into each other, is what we call the cloud. Software flows from the cloud to you as a stream of upgrades.
The cloud is the new organizing metaphor for computers. The foundational units of this third digital regime, then, are flows, tags, and clouds.
The information age is driven by digital copies—exact and free. Free is hard to ignore. It propels duplication at a scale that would previously have been unbelievable.
A universal law of economics says the moment something becomes free and ubiquitous, its position in the economic equation suddenly inverts.
To put it simply: When copies are superabundant, they become worthless. Instead, stuff that can’t be copied becomes scarce and valuable.
When copies are free, you need to sell things that cannot be copied. Well, what can’t be copied?
Trust, for instance. Trust cannot be reproduced in bulk. You can’t pur...
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There are a number of other qualities similar to trust that are difficult to copy and thus become valuable in this cloud economy. The best way to see them is to start with a simple question: Why would anyone ever pay for something they could get for free? And when they pay for something they could get for free, what are they purchasing?
Free is good, but these are better since you’ll pay for them. I call these qualities “generatives.” A generative value is a quality or attribute that must be generated at the time of the transaction.
Here are eight generatives that are “better than free.”
IMMEDIACY Sooner or later you can find a free copy of whatever you want, but getting a copy delivered to your inbox the moment it is released—or even better, produced—by its creators is a generative asset.
PERSONALIZATION A generic version of a concert recording may be free, but if you want a copy that has been tweaked to sound acoustically perfect in your particular living room—as if it were being performed in your room—you may be willing to pay a lot. You are then not paying for the copy of the concert; you are paying for the generative personalization.
Personalization requires an ongoing conversation between the creator and consumer, artist and fan, producer and user. It is deeply generative because it is iterative and time-consuming.
INTERPRETATION As the old joke goes: “Software, free. User manual, $10,000.” But it’s no joke. A couple of high-profile companies, like Red Hat, Apache, and others make their living selling instruction and paid support for free software.
AUTHENTICITY You might be able to grab a popular software application for free on the dark net, but even if you don’t need a manual, you might want to be sure it comes without bugs, malware, or spam. In that case you’ll be happy to pay for an authentic copy.
ACCESSIBILITY Ownership often sucks.
In part, this is what you get with iTunes on the cloud. You pay for conveniently accessible music you could download for free somewhere else. You are not paying for the material; you are paying for the convenience of easy accessibility, without the obligations of maintaining it.
EMBODIMENT At its core the digital copy is without a body. I am happy to read a digital PDF of a book, but sometimes it is luxurious to have the same words printed on bright white cottony paper bound in leather. Feels so good. Gamers enjoy fighting with their friends online but often crave playing with them in the same room.
Live concert tours, live TED talks, live radio shows, pop-up food tours all speak to the power and value of a paid ephemeral embodiment of something you could download for free.
PATRONAGE Deep down, avid audiences and fans want to pay creators. Fans love to reward artists, musicians, authors, actors, and other creators with the tokens of their appreciation, because it allows them to connect with people they admire.
1) It must be extremely easy to do; 2) The amount must be reasonable; 3) There’s clear benefit to them for paying; and 4) It’s clear the mo...
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There are many other examples of the audience paying simply because they gain an intangible pleasure from it.
DISCOVERABILITY The previous generatives resided within creative works. Discoverability, however, is an asset that applies to an aggregate of many works. No matter what its price, a work has no value unless it is seen.
In these examples, you are not paying for the copies, you are paying for the findability.
Our entire life is getting a musical soundtrack. All these venues are growth markets, expanding as rapidly as the flows of bits.
hundred million people became film students, starting to make their own videos and uploading them to YouTube in the billions. Again, the audience pyramid flipped. We are all filmmakers now.
The grand move from fixity to flows can be starkly illustrated in the status of books.
These are the Four Stages of Flowing:
Fixed. Rare. The starting norm is precious products that take much expertise to create.
Free. Ubiquitous. The first disruption is promiscuous copying of the product, duplicated so relentlessly that it becomes a commodity.
Flowing. Sharing. The second disruption is an unbundling of the product into parts, each element flowing to find its own new uses and to be remixed into new bundles.
Opening. Becoming. The third disruption is enabled by the previous two. Streams of powerful services and ready pieces, conveniently grabbed at little cost, enable amateurs with little expertise to create new products and brand-new categories of products.
To add, subtract, reply, alter, bend, merge, translate, elevate to another level. To continue its flow. To maximize the flowing. My media diet may be thought of as streams of pieces, some of which I consume as is, and most of which I engage in to some degree.
We have only started flowing. We have begun the four stages of flowing for some types of digital media, but for most we are still at the first stage. So much more of our routines and infrastructure remains to be liquefied, but liquefied and streamed they will be.
orality was overthrown by technology. Gutenberg’s 1450 invention of metallic movable type elevated writing into a central position in the culture.
Mass-produced books changed the way people thought. The technology of printing expanded the number of words available, from about 50,000 words in Old English to a million today. More word choices enlarged what could be communicated. More media choices broadened what was written about.
The country’s success depended on high levels of literacy, a robust free press, allegiance to the rule of law (found in books), and a common language across a continent. American prosperity and liberty grew out of a culture of reading and writing. We became People of the Book.
We are now People of the Screen.
This reproductive culture has, in the last century or so, produced the greatest flowering of human achievement the world has ever seen, a magnificent golden age of creative works. Cheap physical copies have enabled millions of people to earn a living directly from the sale of their art to the audience, without the weird dynamics of having to rely only on patronage.
today most of us have become People of the Screen. People of the Screen tend to ignore the classic logic of books or the reverence for copies; they prefer the dynamic flux of pixels.
truth is not delivered by authors and authorities but is assembled in real time piece by piece by the audience themselves. People of the Screen make their own content and construct their own truth.
People of the Book favor solutions by laws, while People of the Screen favor technology as a solution to all problems. Truth is, we are in transition,
Screening includes reading words, but also watching words and reading images. This new activity has new characteristics. Screens are always on; we never stop staring at them, unlike with books.
The fate of books is worth investigating in detail because books are simply the first of many media that screening will transform. First screening will change books, then it will alter libraries of books, then it will modify movies and video, then it will disrupt games and education, and finally screening will change everything else.
This liquidity is just as true for the creation of books as for consumption. Think of a book in all its stages as a process rather than artifact. Not a noun, but a verb.
Ebooks today lack the fungibility of the ur-text of screening: Wikipedia. But eventually the text of ebooks will be liberated in the near future, and the true nature of books will blossom.
those kinds of books have always wanted was to be annotated, marked up, underlined, bookmarked, summarized, cross-referenced, hyperlinked, shared, and talked to. Being digital allows them to do all that and more.

