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The Many Battle Fronts of Content Owners

museumpeace writes "This community constantly chews on stories like the first sale doctrine and the endless maneuvering of RIAA, MPAA, follies of DMCA and DRM in general. I think of each of those stories as like trying to make sense of a particular earthquake. In the Huffington Post, blogger Jonathan Handel succinctly lays out six tectonic market and technology forces that provide a map for all of this. Sample his point #5, the media is the money: 'Fifth is market forces in the technology industry. Computers, web services, and consumer electronic devices are more valuable when more content is available. In turn, these products make content more usable by providing new distribution channels. Traditional media companies are slow to adopt these new technologies, for fear of cannibalizing revenue...'"

17 of 57 comments (clear)

  1. Totally offtopic by esocid · · Score: 2, Funny

    But I loved that huge headline on the article: "Vanilla Ice Arrested."

    --
    Absolute power corrupts absolutely. indymedia
    1. Re:Totally offtopic by Eponymous+Crowbar · · Score: 2, Funny

      Serving notice to all the haters who said he couldn't even get arrested.... that's how he rolls!

  2. What? by esocid · · Score: 4, Insightful

    It's true that people still consume media the old-fashioned way -- but fewer and fewer do so every day. Most of the content industries are seeing flat or declining revenues and audiences.
    I'm sorry but you sir must not be aware of what is going on in the world.
    1. Movie ticket sales at record high.
    2. Cable company reports record sales.
    3. Digital sales boost music industry.
    Should I go on?
    He may be correct about newspapers declining, but the other points I believe are false.
    --
    Absolute power corrupts absolutely. indymedia
    1. Re:What? by jedidiah · · Score: 4, Insightful

      Well, for cable you figure they already have a saturated market. All they can really
      do is tread water. They continue to provide what they have always provided to whom
      they always provide it (much like Microsoft).

      The status quo is for cable companies to stay more or less in the same place.

      If people were really doing what the commentator says then you would see a sudden
      drop in cable revenue as people begin to cancel their cable subscriptions. I know
      torrent freaks that have done this.

      However, this is a relatively rare thing.

      This article also ignores the possibility of people buying conventional
      content for the express purpose of using it for thier new technology. A
      bunch of DVD's ripped into a media center can be a thing of beauty.

      Ultimately all content has to compete with each other. One game studio
      owner once said that their games have to compete with everything else
      a person could do including sex. So their games have to be better than
      sex.

      One part of the media market could be getting sacked by another. If the
      RIAA is whining it could be because of the rise of DVD collections and
      video games. It doesn't even need to be due to some other sort of "sea
      change".

      As I often like to say... I got distracted on my way to the CD aisle
      buy that big bin of $5 DVDs and those racks of $7.50 DVDs...

      --
      A Pirate and a Puritan look the same on a balance sheet.
    2. Re:What? by eldorel · · Score: 4, Informative
      I would like to point out that all of these links are using dollar amounts as a measurement tool, without accounting for changes in price.

      I can make more money selling 90 widgets at $6 than selling 100 widgets at $5.

      A quick google search for ("movie ticket sales" record high) comes up with about 600 items, most of which reference the same quote.

      "Moviegoers around the world pushed global box office revenues to a record $26.7 billion in 2007,
      • but rising ticket prices and a weakening dollar accounted for much of the increase,
      the Motion Picture Association of America said Wednesday." If even the mpaa has been forced to admit that the majority of the sales increase has been due to price increases, the odds are "Most" in this case means almost all.

      Another quote from the same article http://movies.yahoo.com/mv/news/ap/20080305/120477504000.html

      Revenues in the United States and Canada increased 5.4 percent to a record $9.6 billion, with
      • admissions unchanged at 1.4 billion tickets sold,
      and ticket prices 5 percent higher at an average $6.88.
    3. Re:What? by carps · · Score: 3, Funny

      "One game studio owner once said that their games have to compete with everything else a person could do, including sex. So their games have to be better than sex."

      Couldn't they try to popularize gaming among individuals for whom sexual partnership is not an immediate entertainment alternative?

      Sometimes in business the most effective strategies are not the obvious ones!

      --
      Well I'm making *two* Low Budget HDV Filipino Horror Movies in NYC.
    4. Re:What? by PopeRatzo · · Score: 2, Insightful

      I've learned that generally, I'm not very exceptional. It may be true that movie ticket sales are at record highs and digital sales are boosting the music industry revenues, but I'm guessing that a growing number of people are finding "alternative" ways to see movies and hear music. And let me tell you, the movie and music "industries" are not gonna get rich if lots of people start getting their movies and music the same way I do.

      And that, more than anything else, is my hope. I haven't needed cable or satellite television for a couple of years now, yet I still see all my favorite shows (The Wire, South Park, etc). In fact, my television probably hasn't even been turned on since the Super Bowl, and before that, the World Series. I haven't set foot in a theatre except my local Imax for over a year and yet I see a couple of movies a week. Music is ubiquitous in my life, but I only buy music directly from the creators.

      Good riddance, I say.

      --
      You are welcome on my lawn.
  3. the term "disruptive technology" by circletimessquare · · Score: 4, Interesting

    is often used, like the phrase "paradigm shift" to give oomph to other wise boring corporate blather

    however, in this case, the term disruptive technology is entirely functional: the internet is completely destroying the music industry

    the book industry and the movie industry are standing in handcuffs on the stairs to the guillotine, helplessly watching their brethren being beheaded. they watch in disbelief as the cheering masses they used to lord over relish the sight of the bloodsport of their demise

    i'm sorry, but a free and open network where any media can be transmitted effortlessly and without interception is not a business opportunity. its a replacement for an industry based on distribution. people keep talking about the fact that the music industry could have gotten in front of changing technology and used it to their advantage, rather than change taking place without them while they sat in denial. i have the contrary opinion: i think the music industry would never have been able to get in front of this steamroller

    they were never able to, no matter how much time they had to prepare. there is simply no way for the music industry to harness the internet to their continued existence. the internet, the substance of it, is simply anathema to what they do: charge a fee for music distribution. the internet is simply replacing them. effortless free distribution has no economics too it. there's no money to be made

    of course there is money to be made in related industries: concerts, advertising tie-ins, band and brand building, etc. but anything having to do with distributing media is simply a free advertising platform, nothing more. the anicllary businesses is what the music industry will morph into, a decimated diminished form of its former self

    the only way the music industry could survive unaltered by the internet is to invent a time machine and go back to the 1960s and murder the arpanet researchers. you cannot harness that which means your doom. asking or expecting the music industry to get in front of technological change and make it work for them is like asking the incan and aztec nobility to get in front of the spanish conquistadors and use them to their advantage. as in: no way that's going to happen

    your doom is your doom. music distribution conglomerates are simply a business model for the historical dustbin. there is no other way to interpret what the internet means to them. the internet is not a "business challenge" for them to meet with fast footwork and fancy innovative thinking. it is simply an appointment with death. and i will be mourning their passing just as soon as i get over my shock and pain over the passing of the dtuch east india company. as in: who cares. the world keeps turning, life keeps changing. its a done deal. the story is over. goodbye sony bmg, bertelsmann, et al. buh bye. stop banging on your coffin. your dead. realize it

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:the term "disruptive technology" by nine-times · · Score: 3, Insightful

      i think the music industry would never have been able to get in front of this steamroller

      I think your point would be better served to agree that the music industry could have gotten in front of this steamroller, but they would have gotten run over anyway.

      I half agree with you and half disagree. The music industry cannot survive as-is in the Internet-age because their business model, centered around distribution, is obsolete. However, that doesn't mean that they can't survive in some form. There's still room for them to act as agents, marketing/branding whatever they can, and making money of merchandizing and general crap.

      Also, there can be a business model from the Internet distribution. Being the content host (or even just the tracker site) and providing recommendation engines can still be a feasible business. Whether you charge a nominal fee per transaction, a small subscription fee, or live off ad revenue, there would be a business model there.

      Think of it this way, if copyright law was dismantled tomorrow, Apple could still make money off of iTMS. Not having to pay labels, I think they could still have a viable business. You might think people would just find other free sources, but the fact is that customers are willing to pay a little bit of money (at least a little) in order to have a site that's easy to search, has good/uncorrupted content, a good shopping experience, and a decent recommendation engine.

    2. Re:the term "disruptive technology" by steelfood · · Score: 2, Interesting

      i'm sorry, but a free and open network where any media can be transmitted effortlessly and without interception is not a business opportunity. its a replacement for an industry based on distribution. people keep talking about the fact that the music industry could have gotten in front of changing technology and used it to their advantage, rather than change taking place without them while they sat in denial. i have the contrary opinion: i think the music industry would never have been able to get in front of this steamroller ... This is the wrong kind of thinking, and the exact same kind of thinking which lead to the lawsuits and attempts to stamp down on digital distribution.

      You are wrong because of the success of iTunes. That, in and of itself, shows that online distribution can be, in and of itself, a viable business model.

      You are wrong because of the necessity of value-added services that big labels currently do provide. Marketing, for example, is still necessary to gain recognition. Instead of labels taking all of the profits of media sales, they could instead bill the artists directly.

      The companies could have capitalized on value-added products, like t-shirts, booklets, pamphlets, etc. as well as the security of actually having a physical copy instead of a digital one. The labels could have used their big distribution network to sell other things besides CD's.

      The only difference is that under the new model, the labels' profits wouldn't nearly be as high. They would have to move away from their gluttonous culture. That is, they wouldn't be able to afford to upkeep that tour bus with a built-in pool in the back or the million-dollar bling for their third mistress anymore.

      Adaptation is necessary for survival. The music industry as it is now is incompatible with online distribution. But that doesn't mean the labels can't adapt to the times and continue to remain afloat.
      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    3. Re:the term "disruptive technology" by multisync · · Score: 2, Insightful

      there is simply no way for the music industry to harness the internet to their continued existence. the internet, the substance of it, is simply anathema to what they do: charge a fee for music distribution. the internet is simply replacing them. effortless free distribution has no economics too it. there's no money to be made


      But distribution isn't all the "music industry" does. From my perspective, that's a relatively small piece of the puzzle.

      Someone still needs to scout talent; just because you can pound out off-key versions of your classic rock favorites, that doesn't necessarily mean anyone else wants to listen to it. Someone needs to work with artists, to help them develop and hone their craft. Someone has to put up the money needed to record CDs and produce videos, and put the artist together with the right producer, the right engineers.

      A&R people take the 40 or 50 half-finished songs the band has been working on and help them select the one's they believe people are more likely to pay to listen to. Others promote the band, pay off radio stations to play them, do advance work in cities the band will be performing to create a buzz and drum up ticket sales.

      These are all services music fans value and as such would be willing to pay for. Traditionally, these services have largely been financed through the sale of plastic discs, and that may no longer be possible - at least on the scale the industry is used to. That's why the need for a new business model.

      But it is no more correct to say you can not make money off music in the Internet age than it is to say you can not make money off software in the age of FOSS.
      --
      I don't care why you're posting AC
    4. Re:the term "disruptive technology" by davester666 · · Score: 2, Interesting

      I shudder to think of how 'television' would work if it was being invented now in the US. There would be multiple, competing broadcast formats (why would the FCC require the use of a single standard, because multiple standards are working so well for the cell phone industry]. Content providers [both for movies and episodic shows] would sign up for exclusive deals with specific carriers, so you would need to choose the carrier based on what content you wanted [still happens now, but is generally quite limited]. If any carrier got too large of a market share, content providers would band together and offer better terms to other carriers in an effort to decrease the dominant carriers power.

      Industry 'sectors', once they become established, tend to keep functioning in a certain way out of inertia and because it's in the best interests of the people making the most money from that industry. The music industry makes too much money and 'owns' too much content that people want to buy for them to just call it quits. They will fight tooth and nail to make sure they get to stand between artists and consumers.

      I would say that is the main reason for why they keep pushing subscription plans. These plans would make it impossible for artists to get paid if they don't belong to a label. There would be no way for an artist to determine what amount of money they should be paid from the amount of money the label receives. And from the labels point of view [since they would get to define the interface to this system, as they 'own' most of the content right now], the important thing is the labels share of the monthly subscription fee, so it would be cheaper, easier and better for the label to emphasize the name of the label over the artist [because the label doesn't care which of their artists get money, just as long as a consumer listens to music from their label].

      --
      Sleep your way to a whiter smile...date a dentist!
    5. Re:the term "disruptive technology" by Smauler · · Score: 2, Interesting

      Someone still needs to scout talent; just because you can pound out off-key versions of your classic rock favorites, that doesn't necessarily mean anyone else wants to listen to it.

      What, without record companies to help us along we'd have to sift through every dross song released to find something good? Lots of new bands are being "discovered" by record companies now because of online communities that supported them, and found them, previous to their "discovery". Artic Monkeys is one such example. Without record companies, this could well be the way of all bands - the popular will get noticed, the less popular won't. I assuming those who are crap will be in the latter category. Anyway, if you're completely honest, can you really say that record companies have done a good job of scouting musical talent for you?

      Someone needs to work with artists, to help them develop and hone their craft.

      Plenty will do this for not much money - money most 1/2 way decent bands can get doing gigs

      Someone has to put up the money needed to record CDs and produce videos, and put the artist together with the right producer, the right engineers.

      This is the tough bit. However, gigging and selling cheap CDs can generate enough revenue to fund a cheap first decent CD. The right producer, the right engineers are generally currently vastly overpaid (most people higher up in the music industry are, if you haven't noticed). You do not need a great producer, great engineers, or great anything if you've got great music. If your pretty crappily produced first CD sells ok, get an OK producer for your next.

      Much of I'm talking about only works ideally - that is if there weren't corporate sleazebags to contend with. However, the corporate sleazebags are getting more and more superflouos currently. Music is being discovered and published online more and more, and the role of the sleazebag is diminishing. He'll always be there, and if I'm honest I do think there will always be a Britney or someone sat up there in the charts because of the backing. However, the tide is turning for the better...

  4. Free Market Economy by PC+and+Sony+Fanboy · · Score: 4, Insightful

    If companies won't provide the goods the market (read:the population) desires, then someone will. And if necessity is the mother of invention ... and the market isn't supplying what 'we' want - then someone will find it necessary to modify the offerings of various companies to fit our 'needs'.

    Plain and simple, if you aren't supplying a product that people want ... then don't complain when people use alternatives (legal or not!)

  5. Content value = zero by cdrguru · · Score: 2, Insightful

    What has happened is a complete disconnect between the content producers and the consumers. At least most of the content producers view their material as something extremely valuable that took their time, energy and creativity to produce. Consumers are looking at it thinking that anyone could produce this, maybe even their neighbor in his garage.

    The problem as the article points out, is there too much, too low quality and too easily sampled content out there. In this glut we have Darwin Reedy (of American Idol fame) and every other self-produced, self-promoted "artist" out there thinking they are what the world has been waiting for. Too much!

    So you have a truely talented artist or performer and their stuff is dumped in the bin with all the rest. We've moved beyond the point where people are looking at professionals for guides to quality. Instead, we're looking at blogs and overloaded paid shills and seeing that they have no monopoly on the truth.

    Where does this go? Well, content has zero value today is a good start. If you are thinking of a career in something involving creativity, forget it - it isn't a career but only a hobby. Copyright is probably dead because it is hoping we will respect something as a treasure when it is clear it has no value. Software, books, movies and music are now going to be created by unprofessional folks that will occasionally turn out a gem. But there aren't going to be any more reviewers or awards that mean anything so they will likely be overlooked.

    Think of it as the open source revolution for content. Most of it, like open source software, will be unfinished and unpolished. Sometimes, there will be something great that comes of it.

    But the fact that will remain is that no matter how great it is, the value will still be zero.

  6. Barrier to entry... by argent · · Score: 2, Insightful

    There's a barrier to entry for bloggers who do want to do legwork. They don't get the same access as reporters. Can they get into the city council meetings to report on them? Council meetings, probably, but there's lots of other places they can't.

    As I said in another message: the question isn't whether bloggers will have to do the work reporters, the question is will they be allowed to?

  7. When you shoot yourself in the foot you lose value by Prisoner's+Dilemma · · Score: 3, Informative

    Over all a good article, but could have mentioned other things the content companies are doing which devalue the content they have. Take movies. I used to enjoy going to the movies. Now it easily costs $30 per person (much higher admission and exorbitant charge for food) to be jammed into a theater of inconsiderate people and then herded out as quickly as possible so the next showing can start. While I'm waiting for the movie to start, I'm bombarded with advertising telling me how great of time I'm having or telling me I need to buy something. It's no longer worth it.

    For those that don't know, The studios (content owners) take almost all of the admission revenue and the theaters (content packaging) make their money on concession and other sales. In an effort to squeeze every last cent they can out of the goer (customer) they've lost many customers. To try to subsidize revenue, 'lost' from customers they drove away, they squeeze some more, driving even more away (snowball). How many mega-plexes have you seen closed down. Many drive-ins still offer a good experience for a reasonable price.

    When a customer no longer finds going to the theater worth the cost/hassle, they might wait till it is released on DVD. If they still remember they wanted to see a particular movie they buy the DVD, pop it in their player and are blasted with an advertisement telling them not to steal the DVD they just paid for. They then have to wait through another notices about not copying the movie before waiting through the same notice in another language.

    Do the studios actually believe that bombarding someone, who already paid, with irritating threats and warnings is going to increase the odds they will spend hard earned money the next time they want to see a movie?

    Now it's the next time and wouldbe customer has to decide it they want to
    1. Spend more money, which is harder to come by, to be inundated with advertisements and other baggage, just to have a less enjoyable experience seeing the movie. OR
    2. Download it where they won't have all the other bothers. They may think it's wrong, but it doesn't matter as much to them because the perceived victim (the studio) was trying to take advantage of them and the the RIAA is mean/greedy the way they aggressively go after poor college students

    The more the content provider does to irritate the customer, the more the customer will cease to be a customer.

    I used to be one of the movie business' biggest customers. Now I go hiking, and the Internet gets the blame.