GrahameLesh.com

(note: This is my essay for Comm 217, posted here because I think it is a cool topic.)

The comparisons always come fast and hard. Since the popular music industry was first, it must always be the industry that all others are judged against when the Internet catches up with old business models. After popular music went down movies, TV shows, newspapers, and even bicycles followed soon after. Yes, even the bicycle industry is being hit hard, since local bike shops can only stock so many different kinds parts and EBay can stock an infinite number, cutting heavily into revenue for local bicycle shops. The common denominator in all of these situations is the Internet breaking old business models. Music and newspapers, for instance, have both come to find themselves in a place where the cost of producing content remains pretty high, but the cost of distribution and reproduction has gone to basically zero. Thus, money cannot be made in the distribution of music or newspapers in the quantity that it was made before by record companies and newspapers. But while there are similarities between the situations that these institutions find themselves in, there are major differences as well. Thus, the modest success those certain industries have had in tweaking their business models to fit this new Internet age cannot necessarily be transferred to another industry. There have, for example, been many words written about the need for newspapers to create their own iTunes, or their own Hulu, when many problems with these comparisons arise with some scrutiny. First, iTunes and Hulu are not exactly successes for their respective industries (both are successes for technology companies, however). Hulu may not survive without a paywall (which will eventually kill it), and iTunes has not come close to replacing the revenues that CDs used to bring in. Secondly, it is incredibly difficult to imagine exactly what a Hulu for newspapers would look like. There is no single model that the newspapers have rallied behind, but if (or when) it comes, it will not look like iTunes (unless the Apple iPad really is the savior of newspapers) or Hulu. It will look completely different, and the newspaper industry will wonder why it didn’t think of whatever that model is earlier. (more…)