I was listening to the internet music on pandora.com. Sometime ago I was thinking of buying a $40 a year license, but never did. Now, after playing several songs Pandora forces me to hear some commercial ads. It’s a typical model – purchase a license and we won’t be showing these ads.
This got me thinking. If I’m a cheap bastard who doesn’t even want to pay for really good Pandora’s service, what’s the point in showing me all these ads? I’m not going to buy anything anyway! Don’t they use something called “target market” anymore? Why wasting money for showing products to the people who are cheap?
I want to offer something that will revolutionize internet and mobile software markets. Let’s turn it upside down: give the software for free to people who don’t like buying licenses, and those who paid will enjoy the ads! Sounds stupid, right? The question is what’s more stupid: advertising to penniless losers or to people with money who are accustomed to pay for stuff?
Update. Ten days after writing this post I paid $36 for the yearly subscription to Pandora radio.