Capitalism 2.0: If you really want to beat them, join them

I’m pretty skeptical of free culture political theory. The Free Culture radicals (people like Larry Lessig, McKenzie Wark and Richard Stallman) argue that the collaborative/non-proprietary ethos of online software production, and the YouTube!-Wikipedia-Napster world it’s unleashed, necessarily contribute to a communitarian model of society: that Web 2.0 technologies represent a shift away from classical economics.

Even after taking a media studies class in college where the professor, Mark Tribe, was something of an open source evangelist, I have my doubts about this technological determinism. But I can sometimes see where the radical theory comes from.

A recent move by Google is a case-in-point. Among the keys to the company’s success is their model for online advertising–using search technologies and consumer behavior online to target ads, and selling that capability to others. One of the very Web 2.0-esque features of that model is the fact that a small-time company has a decent chance to compete with the big shots, since it’s popularity with users (not corporate ad dollars paid in advance) that sends an advert to the top of Google’s lists. That’s one point for the radicals.

This week, Google decided to extend this model to television with Adwords TV. Anybody can make a video spot online (Google has tools to help you do it yourself), and use their crowd-sourcing model to pick a target audience/time slot to air it. You make all the decisions online, pay by credit card and Google does the leg work of getting your ad on TV. The DIY approach fits the collaborative utopia Lessig and Stallman envisage.

Today’s entrepreneurs sometimes argue that Web 2.0 technologies are “additive” not “competitive,” meaning that one new tech feature isn’t out to replace another. You can have a profile on MySpace AND Facebook. Where video may have killed the radio star, Google’ s new ad scheme suggests that Web 2.0 can coexist with the old-school small screen.

Warm and fuzzy as that sounds, however, it seems to me that Google’s philosophy is as old-school as TV itself. Recognizing that people still prefer watching the the Super Bowl on the couch with snacks to YouTube-ing by themselves, they’ve found a way to make online dollars from offline behavior. Google’s “If you can’t beat ’em, join ’em” approach sounds to me like a high tech version of age old game theory.