“Free” doesn’t work
Our web page with information on the Indiana Health Information Network (IHIN, not to be confused with H1N1) just went live. Interestingly, a project called CHC-TV (a project of DynaTek Media) attempted to do a similar thing a year ago, for free. Many people we’ve talked to really disliked CHC-TV, and returned the screens. Their main reasons? There were lots of ads on the screens and video and audio, which in a clinic waiting room just adds to the chaos. It appears, however, that CHC-TV lost steam/funding — their “Installation Update” page has this message, which, according to the date stamp, was last modified on December 16, 2008:
While it has been our hope that health centers who submitted their CHC-TV paperwork before the end of October would have their installations complete by the end of 2008, we regret that we must adjust our installation timetable. Due to unforeseen issues related to manufacturer-led recalls of CHC-TV system components, and effects stemming from the nation’s ongoing financial crisis, NACHC and its partners are unable to guarantee installation of your requested units before the end of 2008. Please rest assured though, that NACHC and its CHC-TV partners are doing everything possible to ensure that previously submitted installation requests will be fulfilled by the Spring of 2009; and any installation requests submitted after October 2008 will likely take place soon after.
So far, the response to RedPost’s IHIN concept has been positive. We’ll see if we fare better than CHC-TV has. We’re not trying to give it away for free, supporting it with ads. We see value in the concept and our test-marketing shows that people are willing to pay for ad-free content.
The digital sign industry has very much depended on the “free” model for a lot of its growth so far (Ripple TV, CHC-TV, many others). I don’t think this is a winning, long term strategy. Time will tell.