So even in the worst cases, free products don’t usually end too badly. Well, unless you’re a user, or one of the alternatives that gets crushed along the way. But everyone who funds and builds a free product usually comes out of it pretty well, especially if they don’t care what happens to their users.
Free is so prevalent in our industry not because everyone’s irresponsible, but because it works.
In other industries, this is called predatory pricing, and many forms of it are illegal because they’re so destructive to healthy businesses and the welfare of an economy. But the tech industry is far less regulated, younger, and faster-moving than most industries. We celebrate our ability to do things that are illegal or economically infeasible in other markets with productive-sounding words like “disruption”.
* Marco Arment, “Free Works”