> No, because its mathematically impossible for the participants to be driven into bankruptcy.
Well, buying a humble bundle is a potential opportunity cost for each comedian. If someone buys a humble bundle, they are most likely not going to buy whatever show that comedian offered in some other format in addition. Something like a humble bundle could in theory be such an opportunity cost for a comedian that he cannot recoup the production cost of a show because of it.
Or is only the marginal cost of distribution a factor in this idea of "mathematical impossibility"? Is that the only variable that influences a potential bankruptcy?
I don't know about comedy, but they recently offered a "Humble ebook bundle", which included the first novels of different series. It's a great way to find out if you like the series and want to purchase more. Just like it's a good way of purchasing games, and I'll gladly pay much more than the average to support indies. I think it has really worked out both for sellers, buyers and Humble Bundle so far.
About one Internet generation ago a paper sci fi (real scifi, not like TV "sy fy") publisher called Baen had the same exact business model except with cdroms.
It worked. I hear it worked very profitably.
As an anecdote I blew a lot of money with them after reading the first novel or whatever. Also gained a couple new authors I still like.
There's probably a startup opportunity in other areas where "the first hit is free" works pretty well. Someone should try it with TV shows.
Its easy to run a groupon for a real physical product where you lose money on each individual transaction, and if you make enough transactions such that X*Y exceeds the net worth of the company, its toast.
Its not possible, so far as I know, to get an individual transaction net loss from a humble bundle, so make one sale or a billion its not possible to end up a net negative much less a negative greater than the net worth of the sponsoring company. If you want to see something funny, try typing in a custom amount on a humble bundle less than $1. You get a pop up graphic and she doesn't look amused. This would imply to me that CC processing/amazon processing costs less than $1 for a $1 transaction.
I don't think the potential sales loss exists unless you put a new product on HB. No one does that, its always something older. Frankly a "fan" of these comedians would have bought it a long time ago, so all thats going to happen is they'll get a small stack of cash and a bunch of new fans. Which is cool.
Well, buying a humble bundle is a potential opportunity cost for each comedian. If someone buys a humble bundle, they are most likely not going to buy whatever show that comedian offered in some other format in addition. Something like a humble bundle could in theory be such an opportunity cost for a comedian that he cannot recoup the production cost of a show because of it.
Or is only the marginal cost of distribution a factor in this idea of "mathematical impossibility"? Is that the only variable that influences a potential bankruptcy?