Friday, August 31, 2007

The Buggy Whip Makers: Why the old media are foolish

The media folks have a unique business model. People who perform music, create movies or (now)write books have created a business in which they expect to be paid repeatedly for the same work. It doesnt apply equally across all media product. A writer expects to be paid each time a work is printed (i.e. it is produced on a new format: magazine, book, etc) where other performers expect to be paid every time the work is shown. Traditionally, this has been easy money for those folks. No I am not saying it is easy to produce new works, but it has been easy to account for printings, viewings, etc. The old methods ere easy to track. I know. When I was a member of Screen Actor Guild, I did enjoy periodic checks for the work I did. They knew when a work I had participated in was shown and how I would be paid for that. Likewise for musicians and other artists in thier respective guilds.

But this is unique to those businesses. In my current work I would raise a great belly laugh in my boss if I demanded to be paid repeatedly for work I had done. If I demanded pay for every time a program I worked on was installed or in the case of a website, viewed - well, let's just say I would be unemployed in short order.

The point being: no other business works the same way as those do.

Technology has a great impact on business models. The most common anecdote used is the tale of the Buggy Whip Makers. Back when horses were the norm and everyone drove wagons, everyone needed buggy whips. But then the automobile came along and well, not so many whips were needed. Now the smar buggy whip makers figured out that cars need tires, gas, oil or some other necessity and went into those businesses (or some other business all together). the foolish whip makers cried how unfair it all was and lobbied the government to do "something!" If they had their way, we would be putting whips in our Escalades, Hummers and Passats to this day.

That sounds silly, but that is how the various media guilds want it. They want total protection of the old business model they have enjoyed for better than a century, at any cost. And anyone who threatens that old business model must be persecut--er prosecuted. We are all familiar with the new items detailing the various legal battles with people and businesses that these media conglomerates have wrought forth.

Yet the very best these conglomerates can hope for is a holding action. And that holding action cannot go on forever. They are destined to lose in the end if they continue. Every time they sue one person, they lose more customers. Every time they sue one person, they potentially lose an artist in thier fold.

And technology has a nasty habit of routing around efforts such as these. The information age gives artists direct contact with thier audiences. Technology ever reduces the cost of producing better and better "garage" artists. A guy, a guitar and a 500 dollar laptop can produce a viable product. A gal, a laptop and the internet can create a great novel. And since either of these could only expect pennies per copy from the media conglomerates, they can sell for far cheaper than the conglomerates do and make just as much money. In fact, they can give away stacks of product and still make the same as before.

Then there are We The Consumers. I am a Tweener. I was born on the outer cusp of the Boomers and the inner cusp of GenX/Y. I grew up with technology and punkish ideals - but I am pretty old as far as the Internet Age goes. So I have a relatively unique perspective. I am used to paying 15 bucks for a CD and if it gets wrecked, paying another 15 to replace it. But I am tired of it. I no longer head right into the theater to catch the latest movies. Now I wait to see if they are good. I do most of my reading online. But I do remember and enjoy book stores.

Music - Back in my youth, buying music hurt. Hours were spent in stores poring over records, cassettes and CDs. Buying one took a big chunk out of my budget. Now, even though I have more money, I have more responsibilities. A fellow with a mortgage and family doesnt idly drop cash for a CD on a daily basis. But when I do buy, I buy the catalog. Now I no longer go to shops and spend time (I dont have any) I check thing out online. I go by word of mouth. And if the conglomerates wont let me grab a cd's worth of some band I dont remember or dont know...then I will check out those that do. And I will buy the CDs for that band if I like it. Cases in point - A buddy turned me on to Bernadette Seacrest. I found out she was playing locally and I dug it enough to buy her CD at the show. Then I found out her Bass player had a solo CD..I went and bought that. I hunted it down. I checked out Wilco after they released the masters online...I went and hunted down every Jay Farrar recording I could find....and bought them. You see, the recording industry has lost me as a customer because they dont serve me. But I still like music and I still find new music. Every day the industry loses more customers. And if they lose customers, how can they expect to retain and gain artists?

Movies - Going to the theater to see a movie is such a pain in the ass any more. The cost is outrageous, the service shitty and I get tired of being propagandized and threatened by the industry before each preview. Not to mention, if I ever see some assclown filming the audience looking for "pirates", I will shove the camera straight up his ass. I swear, the airline industry is bleeding personnel over into Leow's or something. Granted, I have a young son. So sometimes we have to go see some flick he is hot for seeing. But that is a limited run, folks. He will grow and we will largely be done with the theaters. And maybe once a year something will come out that I want to see in the theater simply because of the giant screen. some spectacle that just wont play on my TV. As for buying...yeah right. I can count on one hand the number of DVDs I have purchased at retail on one hand for the duration of my entire life. And those I got from the bargain bin arent that many more. Rentals? Ha! Face it...the big movie companies make shitty product. If you guys wont take risks, why should I? Instead I will check ot something interesting on the independent film channels..or stick to reruns of Law and Order. You guys plain ass suck.

Books - Probably 90% of my reading is done online. Or copied and read offline. I do still love books. But the books I read are fun "airplane" reading books. Thrillers and the like. And I dont buy them new. I get hand me downs or I get them from used book stores. Again...why would I risk 10 bucks on a book by an author I dont know unless I get a shot at his writing for cheaper (or free)? Now if I encounter an author via a freebie, hand off or used and I like the stuff..yeah then I will buy his stuff new. And most likely anything I can get my hands on, to boot. Andrew Vachss is such an author. I read a book of his that i got in a used book store. Fantastic. I have since spent well over a century note on his books. Harry Turtledove..I got one of his alternate histories via hand-me-down...I have ow read most of his published works...most of which I purchased new.

So there you have it. The simple message to these conglomerates: quit trying to suck every penny from every note, frame or word. Loosen up a bit. How many Ferrari's does one need? If I knew a bigger chunk of my dollar went into the performers hands, my buying habits would change. If I knew I could download the digital version of The Clash Sandanista! after my dog ate the CD, I would be far more likely to risk a few bucks on an unfamiliar band. If I could really enjoy a full novel by an author without risk, I would try out far more new authors. I would also buy the stuff I liked.

And for christ's sake, let me watch, listen and read the things I buy wherever I might want to do so. Dont be so damned paranoid.

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