Lessons learned as a print and online publisher:
- Obscurity is a far greater threat to authors and creative artists than piracy.
- Piracy is progressive taxation.
- Customers want to do the right thing, if they can.
- Shoplifting is a bigger threat than piracy.
- File sharing networks don’t threaten book, music, or film publishing. They threaten existing publishers.
- “Free” is eventually replaced by a higher-quality paid service.
- “There’s more than one way to do it.”
Excerpt from 5. File sharing networks don’t threaten book, music, or film publishing
Publishing is not a role that will be undone by any new technology, since its existence is mandated by mathematics. Millions of buyers and millions of sellers cannot find one another without one or more middlemen who, like a kind of step-down transformer, segment the market into more manageable pieces. In fact, there is usually a rich ecology of middlemen. Publishers aggregate authors for retailers. Retailers aggregate customers for publishers. Wholesalers aggregate small publishers for retailers and small retailers for publishers. Specialty distributors find ways into non-standard channels.
Those of us who watched the rise of the Web as a new medium for publishing have seen this ecology evolve within less than a decade. In the Web’s early days, rhetoric claimed that we faced an age of disintermediation, that everyone could be his or her own publisher. But before long, individual web site owners were paying others to help them increase their visibility in Yahoo!, Google, and other search engines (the equivalent of Barnes & Noble and Borders for the Web), and Web authors were happily writing for sites like AOL and MSN, or on the technology side, Cnet, Slashdot, O’Reilly Network, and other Web publishers. Meanwhile, authors from Matt Drudge to Dave Winer and Cory Doctorow made their names by publishing for the new medium.
Excerpt from 6. “Free” is eventually replaced by a higher-quality paid service.
In looking at online content subscription services, analogies with television are instructive. Free, advertiser-supported television has largely been supplanted—or should I say supplemented (because the advertising remains)—by paid subscriptions to cable TV. What’s more, revenue from “basic cable” has been supplemented by various aggregated premium channels. HBO, one of those channels, is now television’s most profitable network. Meanwhile, over on the internet, people pay their ISP $19.95/month for the equivalent of “basic cable”, and an ideal opportunity for a premium channel, a music download service, has gone begging for lack of vision on the part of existing music publishers.
Another lesson from television is that people prefer subscriptions to pay-per-view, except for very special events. What’s more, they prefer subscriptions to larger collections of content, rather than single channels. So, people subscribe to “the movie package,” “the sports package” and so on. The recording industry’s “per song” trial balloons may work, but I predict that in the long term, an “all-you-can-eat” monthly subscription service (perhaps segmented by musical genre) will prevail in the marketplace.
Originally found on the O’Reilly Radar.
