Have you noticed that in different countries different ideas are being floated with respect to new business models for content distribution?

In the UK they have the “all you can eat” legitimate download model for music. Warners are rolling out the model that means that downloads and DVD release takes place simultaneously. And so it goes – different ideas in different territories.

Does this mark the point at which content owners are getting desperate?

Some people might like to think so. But I wouldn't agree.

There is no doubt that the content companies must be rattled. But then so are many of the businesses that were successful before the train came off the rails.

The thing about the content industry is that it looks like a predictor for many other businesses, and the economy at large. I have no proof that this is the case, except my hunch that once music is negatively impacted, next goes the housing industry and the banks and so forth.

The reality is that the content industry has finally come to the realization that it has to come up with a new model. The problem is that when they are presented with the options, they realize that there is a risk involved and choose not to take the bet.

The bet is of course, P2P.

But to get P2P to work for them they need to be able to have visibility on the financial results and create a level of predictability that is not going to be present in the global economy for some years to come. That doesn't suit so they revert to plan A – which remains litigation.

It is just like our Prime Minister staring a collapsing economy in the face and coming to the conclusion that he needs, at this point in his career, to have business on his side rather than green groups. So what we get is a rolling back of all the green pre-election promises.

It is a crazy world that we live in, and  one conclusion that I have come to is this: Whatever government does is probably 180 degrees in the wrong direction to produce positive social and/or business results.

The same goes for the music industry. Heads in the sand and that is that.

But it is also at chaotic times like this that great break throughs happen. I hope that the next big break through comes from Australia. As fare as content distribution and a new model, I have a feeling that we will be seeing something on this score over the next 9 months to a year…

This entry was posted on May 5, 2009 at 10:58 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Main Page by Chris Gilbey No Comments Yet