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Strategies for a discontinuous future.












Wednesday, December 22, 2004
 


Got this comment:

"...After all the court battles and hype, the music companies finally got their act together and now what are they doing? Selling you Britney Spears on iTunes. Yep, you pay �7.99 (or you nick it) not �13.99. But apart from that, what's changed?"

It's a good point. What's changed is not straightforward. But a change has happened - it's that the market size for media publishers who depend on scale economies has shifted downwards dramatically, and the market size for creative media publishers has expanded dramatically.

Right now, this isn't evident, unless you use, for example, SoulSeek. But think about iTunes - the big labels stand to make much less from iTunes than they did before, because Apple's got all the buyer power - they're going to get squeezed. That makes life much better for the little guys, who don't have to worry about Apple, but can now distribute their content much more effectively than in the past.

Speaking relatively, one segment's expected revenues shrink, and the other segment's expected revenues expand.

-- umair // 1:33 PM //


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