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business models Articles

Startups Shouldn’t Necessarily Count on the Twitter Strategy
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Early in the week, Twitter revealed its new "Promoted Tweets" feature, or ad platform (though the company doesn’t like calling it this), and essentially its long awaited business model. The jury is still out on how successful a business model this will be, but it’s already created a huge amount of buzz, and Twitter has grown enormously up until this point without a business model.

Blockbuster May Have Busted Its Last Block

Mom-and-Pops might get to watch Blockbuster close up shop for a change. In a filing with the SEC, the movie rental company acknowledges it may not be able to secure a $250 million loan to continue operations.

Blockbuster, which operates 7,400 stores in 20 countries, had hoped to close next month on financing that would float them until 2010. Because of lender reluctance and the illiquidity facing the larger economy, however, the company may not be able to meet lenders’ terms. From the SEC filing summary:

Now That’s How You Sell Music

Even the music industry is aware of its unsustainable business model; the RIAA & co. is just trying to squeeze money out of the old system as long as possible. Luckily, indie artists are experimenting all the time, trying out …

The Freemium Business Model for Content
Here is a great speech by Chris Anderson about how reputation and attention are becoming the new economies upon which much of the internet (and potentially offline) world may be based upon.

Freemium consists of giving away value (and possibly wrapping it in ads), as a lead generator to sell premium products and services.

Long Live Free: How Free Makes Money
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The concept of "free" isn’t exactly a new one, but it is taking on a sort of new life in the digital age as major publishers (slowly) warm up to the concept – except the recording industry, of course, where the "free" is usually coupled with "to help make us a lot more money."