11.12.2007

watching the sky fall

Does anyone else feel like we're living in the ends times of content ownership as a business model? I've blogged before on my stance on content ownership (and copyright ownership) as a failing-to-failed business model in music, as demonstrated by the good folks in the music industry. Content ownership is only directly useful to content creators - for anyone else it's just a bunch of unnecessary hassle that complicates content management. Fighting over who owns the music is less useful than offering a service that creators are willing to pay for, whether in percentage or in a flat fee.

The WGA strike though, makes this feel like the entertainment apocalypse. Never before have traditional content channels seemed any less useful.

Cost of entry costs what these days? Well, that depends on how you define it. Cost of a decent camera, actors, etc, can scale based on what you want to achieve. But the cost of eyeballs is higher, and infinitely relative. You can either buy them with quality (which is immaterial and transient) or you can buy eyeballs from people who have them (advertising). One is free, technically, and the other is ludicrously expensive. Such is life.

The current structure of the entertainment system is based on a lot of things, arguably chiefly among them star power. But the reason networks and studios developed a power base, is the cost of entry, both in terms of creating content, and distributing it.

The issue is, that system has been running on intertia. And now we've torn down the financial support, and the distribution channel. This strike is both about payment for new content channels, and impetus to improve them.

This is what people do when the world is burning down, they fight over scraps. DVD revenue scraps, online distribution scraps, whatever. The same thing will happen when the actors renegotiate. Then the directors.

It's the same thing that happened in the music industry - when the world is run by guys nearing retirement, there's a lot less risk in looting than in learning how to deal with a new world.

The only real advantages that the film and tv industry have is the experience. Physical albums failed as an art form, but the music still had value. So they were separated. And the industry bigwigs blamed piracy, which is a rational reaction to removing the value from a product. Think about TV, and Movies watched on DVD, or in theatres. Is your experience that much better than it is through illegal content channels? Is that difference something that would be fixed by better speakers, a larger screen or projector, and higher quality digital files?

Although you will never have a home theatre that is better than a movie, you could get one that is better experientially when you include the bullshit of the excessive cost, the ads, the fifteen minutes of crap before the film actually begins. Same deal with DVDs. The extras are nice, so is the image quality. But the often unskippable ads beforehand? I'd rather just take it.

If you want to make money in this situation, you need to offer an experience that beats free as a price. You can't do that by putting restrictions on things.

And you can't make money by pissing off the people who supply the transient and immaterial source of interest, the quality. Because buying eyeballs is popular enough that you need a better hook than omnipresence.

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