-
Strategies for a discontinuous future.





Consulting & advisory, research notes, in the press, about bubblegen,
next wednesdays.





Thursday, October 16, 2003
 


Article about parallels between Edison's strategy and the RIAA's. Basically, control standards, and IP to establish a dominant design, and use regulation to lock it in. I think this analysis is a little naive, but some of the points about alienating the market are well taken.

It's also important to note that Edison's markets WERE fundamentally network (or virtual network) markets, so externalities, path dependence, and early-mover advantages WERE a legitimate way to establish a dominant design.

The music industry is NOT inherently a network market. The economics are not network economics. Just because it uses the Net as a distribution channel doesn't make it so - something that techie analyses like this always miss.

One of my coolest profs always used to make a great point to illustrate the power of standards and a dominant design: a lightbulb from the 20s stil screws into a standard socket today.

Now if Edison's strategy was entirely a 'mistake', as the article argues, that kind of staying power is a bit tough to explain.

-- umair // 8:22 AM //


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