Why monopolies may no longer exist in the online space.
Mark Cuban, who created Broadcast.com before selling it to Yahoo, and Steven Sorderberg, who directed many box office winning pictures like “Ocean’s 11” and “Traffic” have decided to partner up and revolutionize the movie industry by offering “films that would debut simultaneously in movie theaters and on DVD, pay-per-view cable and satellite television.” Frequent reader of TNL.net will know that this is a move I have advocated for a long time (see here and here for examples). Part of the interesting issue here is how Mark Cuban is approaching the issue. In a recent Wired magazine interview, Cuban was recently saying: “People get frightened about all kinds of things in Hollywood,” he says. “That’s not my system. I don’t have a business to protect. I have a business to build.” This business has brought Cuban to fundamentally believe that bits are bits and is now putting serious money behind the idea. I would like to applaud the effort and hope that it will be successful. If it is, expect the rest of the movie industry to follow. Combined with the recent calls by Blockbuster Video executives to release movies on DVD at the same time as they are released in…Read More
Yesterday, I highlighted the modular by design approach and what modules are. Today, we delve in, looking at the first industry to get impacted: the music industry. When Napster introduced the concept of sharing songs, it was not so much the idea of sharing that was wreaking havoc on the music industry; it was the fact that albums were now being sliced and diced. Traditionally, the music industry has been organizing around the concept of album sales. When developing a new music album (which is only a compilation of several music tracks,) the music industry decided to bundle some good songs, along with some so-so and sometimes some bad ones. The idea is that they would promote a few songs in the media and use those as a way to sell albums. Where the economic breakdown happens is that not all songs have the same value. As a result, the idea that a hit song is worth the same amount as a B-side falls apart. So if you take the current album-related economics model, you end up with a product of 10-15 tracks, which retails for somewhere between 15 and 20 dollars. Based on that concept, one can argue that…Read More