Internet users expect more and more services for free : apart from basic free access to information, we already have free music downloads (initially illegal but more and more sites are offering legal versions), free software (especially cloud computing services), free video, free telephony via IP and so on.
There are free ISPs so users do not have to pay for connection, free wifi access in many places (though you may need to buy a cappuccino which may be quite expensive) and there have even been free PC offers in the past, though they were not successful.
While some of these free services are provided by people who are keen to share their great programming skills and gain some kudos (freeware software for example), the majority is paid for by advertising.
But how long can advertising continue to pay for the increasing range of free services for an increasing number of users?
Online global advertising spend is currently $40 billion annually. This sum provides $40 annually to pay for the free online services of 1 billion Internet users.
It is not much to pay for our consumption of more and more music, video, software, storage and other services.
Maybe the rise of the phone will change the model. People are used to paying for phone services. But on the other hand, the emergence of flat rate data tariffs and competition between mobile operators is likely to limit this source of finance.
What will happen if we wake up one day and find that there is no longer the money to pay for the free services we have grown so used to?
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