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Posted in IPTV, Music, News on October 4th, 2007. By Eduard F. Vinyamata.
The Inevitable March of Recorded Music Towards Free
The economics of recorded music are fairly simple. Marginal production costs are zero: Like software, it doesn’t cost anything to produce another digital copy that is just as good as the original as soon as the first copy exists, and anyone can create those copies. Unless effective legal (copyright), technical (DRM) or other artificial impediments to production can be created, simple economic theory dictates that the price of music, like its marginal cost, must also fall to zero.
RSS transforms blogs from pull to push. The web transforms TV from push to pull. (…) This isn’t trivial. It changes everything about the way you market what you market. I’d spend some time thinking about whether you push or pull, about whether you can flip that, and about whether your posture matches your message.
It (almost) always happens this way
The guys in the blue curve, the new guys, would dearly love the assets and reputation that the green curve guys have. They don’t have it, though, so they improvise. They lean into the market. They give customers what they want, and embrace technology and new ideas because they have no other choice. The green curve, on the other hand, is filled with people who feel helpless. They feel like the organization is aligned against them, aligned to fail, all because the status quo is so powerful.
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