Title of Paper - Economics of the New Media The Changing Business and new Paths of

Growth
By Shyama Dutta
University of Pune 2nd DCS conference

The I-economics of Ideas

This paper is an ongoing research of the fast changing world of new media economics. For me, the digital
journey begun in the days of Dotcom.
For many of us it was a fulfilment of a dream of free open enterprise as a way to take the world forward.
The Dotcom was never a bubble as it did not quite burst but floated some wonderful ideas. At the time it
only it was 5 years too early.
In the crashing end of the nineties, the Netscape browser was not fast enough, internet speeds crawled and
bulletin boards were still magic. As files moved across a seeming open space and you stared in
fascination. Most of all you knew this was the superhighway of the future, and exciting ideas that would
make you money.
However it had a greater vision, it created a revolution the new Guttenberg Press. Ideas could now make
a difference. This economy did not measure itself in just money; it also created a wealthy i-economics of
ideas.
It is no longer about what you have to sell; it is about someone wanting your offerings. Bringing in
collaboration and sharing as the core of the new i-economic growth.
Today the new media is no longer as democratic a place. But the seeds of the freedom are still alive. It is
time for the entrepreneurs of ideas in India to take over and it is time that we, people belonging to
universities give the young their space.
The New Economics Open source and booming
Open source as we know, is not free, nor is about licenses either. Open source is about community. It has
integrity of content, usage, author plus it is technology neutral. Further, open source is the internets most
powerful thought economy. In this world where ideas matter, this has a power to move academic and
financial mountains. President Kalam, is a big supporter open source. Features like its constant
technology improvement and security make it attractive.
To take this study further let us look at two open source solutions.
Ubuntu and Wikipedia, both unique and passionately open source.
Ubuntu Operating System: Developed by Canonical, Ltd., the Ubuntu project is committed to the
principles of free software development; people are encouraged to use free software, improve it, and
distribute it. To many it represented a kind of hippy culture that took over serious things like the net.

Today of course it is no longer an eccentric longing; it has become a part of public sectors across the
world.

As of 2009, the Ministry of Education and Science of Republic of Macedonia deployed more than
180,000 Ubuntu based classroom desktops, and has encouraged every student in the country to
use Ubuntu-powered computer workstations.
The French police, have started using open source software in 200g and under the GendBuntu
project Gendarmerie Nationale. This will this will allow a 70% saving on the IT budget without
having to reduce its capabilities.
Interestingly enough, in 2011, Ubuntu 10.04 was adopted by the Indian Justice system.
In March 2012, the government of Iceland launched a project to get all public institutions using
free and open-source software.
The U.S. President, Barack Obama's successful campaign for re-election in 2012 used Ubuntu
Linux in its IT department.

There are several versions, expansions growths in the area of cloud computing, android technology and
more.
In a Guardian interview in May 2008, Mark Shuttleworth, said that the Canonical business model was
service provision and which was not yet close to profitability. To quote him further,

Our business model is entirely based on services around our software. Because Canonical plays such a
key role in Ubuntu, even though it doesn't monopolise access to it, we're a preferred partner for Ubuntu.
Whether it's technical support, which we think people are more likely to buy from us than from anybody
else, or whether it's engineering, customisation, or the enablement of the platform on particular hardware,
Canonical has a privileged position.

Can this concept ever generate revenue? For that let us understand the strategy of another Linux product
Red Hat. First it created freely downloadable Red Hat Linux. Then it killed this to replace it with the new
Red Hat Linux with a more robust enterprise software package that maintained the principles of free
software without actually being free to customers. It sells support, training, and integration services
through subscriptions. This offers unlimited access to services such as Red Hat Network and up to 24/7
support.
Ubuntu however holds steadfast to be a free open source.....
Wikipedia: For students, content writers and anyone looking for a quick content shortcut or knowledge
upgrade Wikipedia is a very active verb.
Across the top of a Wikipedia page, Jimmy Wales frequently places a banner asking for donations. He
talks about rising cost to maintain the 4th most visited site in the world. Donations are the primary ways
Wikipedia funds itself, in addition to grants and gifts, but advertising is still not on the table as an option.

There is a transparency about breaking up costs, across technology, finance and admin costs programs,
legal, new Wiki features, the Board, and the office of the executive director and more.
Jimmy Wales writes, in the Wikipedia Strategic Document, Wikipedia is different. Its the largest
encyclopaedia in history, written by volunteers. Like a national park or a school, we dont believe
advertising should have a place in Wikipedia.
The document goes on to say We believe that major donors and foundations contribute important
resources to the Foundation, including connections to useful expertise, thought leadership, and potential
partners. As a matter of general practice, however, the Foundation will no longer enter into restricted
grants for non-core operational activities and programs.
The power of no advertising revenue ensures that Wikipedia has the power to remain true to neutrality of
content and context.
Marketing Economics Its in the innovation, linking and the texting
Google made the word important. Thats because it understood the importance of people wants. Suddenly
a new generation was created where writing became the primary source to information. Google in many
ways has changed the revenue system of advertising.
The biggies of advertising on the net are

Natural or organic Search Engine Optimization

Pay Per Click

Media Campaigns

Newsletter

Promotions

Social Media

The Google pay-per-click advertising with Adsense provides Google more than 90% of the revenue it
earns. Just advertisements bring Google over $8 billion every year in profits. Google has also bought a
few innovative companies and integrated them. These include YouTube (a video-sharing Web site),
Blogger (a weblog service), Picasa (a photo-sharing service).
As it seamlessly goes into the mobile space with Android an open source mobile software platform, it
also creates a variety of Apps that integrate with existing models of advertising thus adding to its
revenue.
However all this is backed by creating a new digital evangelism with open source ideas such Google
Digitisation of old manuscripts and books and several other such initiatives. For many Google is God,
simply because it answers what we want including a digital copy of an ancient English translation of
Meghdhoot. It is this evangelism that makes Google one of the most trusted search engines boosting up
the visibility of Google itself.

Facebook : Social Media at its most popular because it allows

for ideas to flower
Facebooks IPO filling confirmed a truth: Facebook makes the vast majority of its money by selling ads
on its site. This is about 85% in 2011. The remaining comes in the games people play. From their filings
we realize that Zynga, the company that makes FarmVille and other popular Facebook games, is driving
the growth in Facebooks payments business. Therefore driving Facebooks revenue diversification away
from advertising. Added to this, Netflix bought $3.8 million worth of advertising on it and The
Washington Post Company bought $4.2 million worth of ads from Facebook which is about 0.1% of
Facebooks total ad revenue. The Guardian and several other leading news companies are also buying off
huge advertising from here. Facebook integration with mobile devices actually becomes more significant
with these offerings. Again this is a story of a man in a university, finding some space and time and
becoming the monolith myth of our times.

WhatsApp- Chatting young

Whatsapp, designed by Ipswitch in., seems very simple, most effective, and extremely open-hearten to
the user. It is the largest selling app on Apple Store, free for other OS users such as Android, Blackberry,
Symbian etc. In many ways it has revolutionised instant messaging. Whatspp increased its downloaded
count by providing Multimedia facilities like to share photos, songs and videos. All this has increased its
paid usage considerably. Roger Greene founded Ipswitch in 1991, in his apartment. Snapchat, offering
more innovations such as timed display of content is becoming popular with the young in certain parts of
the world. All these are innovations of some young person, creating ideas.
Conclusions Invest in Ideas
From e-bay to Flipkart it is the core of ideas that is creating the new i-economy. India has seen some its
greatest entrepreneurs investing in ideas .Vikram Sarabhai, Jamshedji Tata and others. One of Indias most
important capitals, education has grown in by these great entrepreneurs, without the greed of returns.
Many are at the helm of world changing solutions.
Today, as India stands on the crossroad of a new economy, where it can become either a middle class
growth or a true wealth powered by ideas. It is the i-economy that spirals and thereby creates value.
Institutions need the value of new ideas, academic and artistic, For example, find the project power it.
Find the budding writer, regional and even tribal film maker, artist, help them collaborate with likeminded
and different people; use the new i-economy for ensuring distribution and release.
It is time for of us, to bring in our own wealth of resources, the ability to source ideas, partnerships,
collaborations and more. For funding in this i-economy is more about people and their enterprise and
collective. Money follows.
Bibliography:

http://www.ubuntu.com/
http://www.guardian.co.uk/technology/2008/may/22/internet.software
Wikimedia Strategic Plan February 2011 A collaborative vision for the
movement through 2015