Business models are changing. And all of us will have to adapt in various ways. But let's not kid ourselves that advertising, live performances, or magic money trees are going to automagically pay the bills for creative content.
Web sites launch all the time, but they also shut their doors. We highlight 15 that bit the dust this year.
Let the debate begin: Was the iPhone more important than iTunes? Was anything bigger than Google finding a great business model? CNET offers its list of the 10 most important stories of the '00s.
This blog takes a deep (and often skeptical) look at trends big and small in the world of enterprise servers, data centers, and "Yotta-scale" computing. This means also taking into account the myriad of software, networks, and devices that are driving change in (or being driven by) these back-end systems. Stories posted to this blog may also appear on Illuminata's site.
Gordon Haff is a principal IT adviser for Illuminata of Nashua, N.H. Before becoming an IT industry analyst, Gordon held a variety of product-marketing positions at Data General, spanning more than a decade. He's programmed for DOS, Windows, and Linux; builds his own PCs; and holds engineering degrees from MIT and Dartmouth, with an MBA from Cornell. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.
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Digital copying and distribution reduces the cost of business, that cost should be reflected in the price. EBooks/MP3s should be significantly cheaper then Paper Books/CDs.
The Digital copies need to be of high quality and convenient. Things like low bitrates, lock-in formats and DRM only make pirated copies more appealing. If the legal paid for version is the better choice people will pay.
Companies need to embrace their customers, remind them where the money is going, to the artist
The music industry is already screwed as MP3s of an album can cost more then the cd, they only provide mp3s in crippled low end files, and they have alienated their customers with lawsuits and proved the artists make chump change. Publishers can learn though.
I also read Paul's article for free and I am positive he doesn't write for free. I keep reading articles on freely distributed blogs about how there is no way that anyone could make money giving away creative work.
Actually, the history of the newspaper is a great example. While they make the bulk of revenue from advertising, many charge an additional fee for the tangible good (the paper and printing). Many of them tried to keep this model as they moved online (NYT included) and quickly realized that with so much good competition online, people refuse to pay for an infinite product (digital content).
The internet is rife with examples of "converting a primary revenue product from something paid for to something given away". Think of cook books, how-to books, encyclopedias... These are sometimes brand building or sidelines, but there are plenty of people making (extremely good) money from giving away this content for free. Trent Resnor the musician dumped his record label and made millions selling limited edition box sets and other merchandise (tangible goods) while giving away the music (infinite goods).
You seem to be mistaking "I can't think of a way" with "it is impossible" that writers can make money giving away content. There are quite literally infinite business models out there to monetize free content, some quite likely better than any of the particulars we are discussing here. Even the particulars you dismiss casually are very good models.
You say "some of the best writers are reclusive and would shudder at the thought of having to make a living by public speaking" and to that I say so what? It may sound callous, but just because one model won't work for some of the people doesn't mean that the model isn't a good one, it just means those reclusive writers will have to find a different way to monetize. If they can't find a way, it certainly doesn't mean the system is broken. I am sure that there are plenty of examples of writers who are locked out of the current system for some reason or another completely unrelated to their writing.
The change is happening, whether we like it or not. There are always those who lament "the good ole days" and there are those who adapt, create, and thrive and become quite happy and content in the new ways. Which one will you be?
- by brienmalone June 10, 2008 9:41 PM PDT
- Gordon, I'm afraid you are completely detached from the reality of the digital underground. If you want to see the impact illegal eBooks have had on the publishing industry, talk to any publisher of technical books. Those US$40-60 telephone book sized references are copied and distributed across peer-to-peer networks with lightning speed. Fiction is out there, too, but its not as popular.
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(6 Comments)Amazon's Kindle is a recycled idea that failed years ago. The GemStar REB1100 was a portable eBook with a built-in modem and network jack that allowed you to purchase books online. They actively prohibited people from putting their own content on the ebook -- and frankly, that killed its usefulness. From the reviews I've read, Kindle is on the same locked-down, expensive content path. At $400, you might as well throw a few more bucks in and get a small laptop.