{"id":526417,"date":"2010-04-13T16:29:00","date_gmt":"2010-04-13T20:29:00","guid":{"rendered":"http:\/\/techdirt.com\/articles\/20100326\/1452138737.shtml"},"modified":"2010-04-13T16:29:00","modified_gmt":"2010-04-13T20:29:00","slug":"the-future-of-content-protection-is-in-the-business-model-not-in-technology","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/526417","title":{"rendered":"The Future Of Content: Protection Is In The Business Model &#8212; Not In Technology"},"content":{"rendered":"<p>If I received a dollar<br \/>\nevery time I get a question along the lines of &quot;how can the content<br \/>\nindustries compete with FREE?&quot; &#8212; I would be traveling first class<br \/>\neverywhere I go. Underneath this question I often find my favorite toxic<br \/>\nassumption: &quot;less control over distribution means less money.&quot;  <\/p>\n<p>This belief is as tired<br \/>\nas it is poisonous: enforcing control (when trust is really what&#8217;s<br \/>\nneeded) will yield instant disengagement, which swiftly and surely will<br \/>\ntranslate into dwindling revenues &#8212; as the music industry keeps proving<br \/>\nagain and again.  If you believe in control rather than value and trust,<br \/>\nthe content business of the future is not a good hunting ground for<br \/>\nyou. <\/p>\n<p>Take eBooks: despite<br \/>\nclear and present proof that DRM has proven disastrous in selling digital<br \/>\nmusic (and now is pretty much history), technical protection measures<br \/>\nare still being looked at to &#8216;secure distribution&#8217;.  When will<br \/>\nthey ever learn? <\/p>\n<p>The thinking that the<br \/>\ndigital distribution of content must be controlled to achieve any kind<br \/>\nof reasonable payment is fundamentally flawed because of this not-so-futuristic<br \/>\nrealization: in our open, mobile, social and digitally networked economy,<br \/>\ncontent publishers need to offer their goods in a way that no longer<br \/>\ncenters on the distribution of units (digital or physical) as the key<br \/>\nrevenue factor. The idea of just selling copies is toast &#8211; selling<br \/>\n(i.e. offering) access is where the money is. <a href=\"http:\/\/www.mediafuturist.com\/2009\/10\/book-publishers-please.html\" >Kevin Kelly said it years<br \/>\nago:<\/a> we must sell what can&#39;t<br \/>\nbe copied, what&#8217;s scarce, not what is ubiquitous. <\/p>\n<p>The irrefutable trend<br \/>\nis that the window of opportunity of &#39;selling copies&#39; (be it iTunes,<br \/>\neMusic, the Kindle or the iPad) is rapidly closing. The real opportunity,<br \/>\nthe <a href=\"http:\/\/www.mediafuturist.com\/2009\/11\/the-future-of-digital-content-and-telemedia.html\" >TeleMedia<br \/>\nFuture<\/a>, is in selling access<br \/>\nand presenting a constant stream of up-sells (i.e. added values and offering<br \/>\ncontent-related <i>experiences<\/i>). Remember, as Mark McLaughlin so<br \/>\nrighly <a href=\"http:\/\/www.huffingtonpost.com\/mark-mclaughlin\/audiences-dont-pay-for-co_b_508985.html\" >pointed<br \/>\nout in the HuffingtonPost<\/a> recently, consumers have never <i>really<\/i> paid for content &#8211; they<br \/>\npaid for distribution! And now, distribution means Attention and Access. <\/p>\n<p>Imagine when buying access<br \/>\nto eBooks, you wouldn&#8217;t just pay for the authorized enjoyment of the<br \/>\nauthors&#8217; words, but you would also gain instant access to highly curated<br \/>\nand socially-networked commentary, a fire-hose of meta-content provided<br \/>\nby your most important peers and friends that may also be reading these<br \/>\nbooks, and their ratings, explanations, slide-shows, images, links,<br \/>\nvideos, cross-references &#8212; and maybe even some direct connections with<br \/>\nthe author or the publisher.<br \/>\nIn an access-based, bundled<br \/>\nand cloud-centric content ecology, being a legitimate and authorized<br \/>\nuser enables engagement, conversation, relevance, personalization, meaning&#8230;<br \/>\ni.e. it unlocks really valuable benefits for the user.  <a href=\"http:\/\/www.techdirt.com\/articles\/20091119\/1634117011.shtml\">Connect with<br \/>\nFans + Reasons to Buy<\/a> (as has been mentioned on this blog a few times,<br \/>\nbefore, I believe) &#8211; that&#8217;s where the money is. <\/p>\n<p>In music, streaming-on-demand<br \/>\nwill without a doubt be available &#8216;for free&#39; (i.e. bundled and packaged<br \/>\nby 3rd parties) or advertising supported, while many added values <i>above and beyond the mere reproduction of music<\/i> will not &#8211; no matter<br \/>\nwhether <a href=\"http:\/\/www.techdirt.com\/articles\/20100210\/1131198110.shtml\" >WMG&#8217;s<br \/>\nCEO Edgar Bronfman thinks<\/a><br \/>\nit&#8217;s a good idea &#8216;for the industry&#8217; or not.  <\/p>\n<p>Just imagine where an<br \/>\naccess-to-the-cloud model could go next: if I want a high-definition<br \/>\nversion of my favorite opera or that Blue Note Jazz Club concert from<br \/>\nlast night I could buy a premium package that provides it. If I want<br \/>\nto share my personal play-lists, ratings  and comments with my Facebook<br \/>\nfriends, and get access to their content, as well, I can add the &#39;social<br \/>\nnetwork option&#39; to my package. If the price is right (micro-transactions,<br \/>\nanyone&#8230;?), I&#39;ll buy &#8211; because I am already hooked on the music. <\/p>\n<p>The music industry needs<br \/>\nto ask itself this question: if a permanent, unprotected download of<br \/>\na song would cost only $0.10, or if an ad-supported version of a on-demand,<br \/>\nall-you-can-eat music service would be seamlessly bundled into your<br \/>\nmobile phone subscription &#8211; would anyone still bother to scour the web<br \/>\nto find badly ripped, virus-laced tracks for free?  Would we need 3-Strikes<br \/>\nor HADOPI or Digital Economy Bills? <\/p>\n<p>Yes, I know, that price<br \/>\npoint sounds ridiculous for those record label CEOs that used to sell<br \/>\nCDs for 15-25 Euros a piece, but hang on a second: if they can get 95%<br \/>\nof the users to <i>buy access<\/i> at a much lower price (and almost<br \/>\nzero cost of duplication and distribution!), and in that process really<br \/>\nengage with them, the fans would also do the marketing for them &#8211; i.e.<br \/>\nshare the links. Sounds like a great model to me.  But of course: selling<br \/>\naccess at a much lower (or <a href=\"http:\/\/www.mediafuturist.com\/2009\/08\/freefeelslikefreefreemium-what-in-the-world.html\" >feels-like-free<\/a>) price to quite literally everyone only makes<br \/>\nsense if it actually connects directly and smoothly to a multitude of<br \/>\nup-selling possibilities, such as interactive versions of eBooks, high-definition<br \/>\nversions of online radio shows, albums or concerts, in-depth analysis<br \/>\nand audio\/video commentary for news, etc. <\/p>\n<p>Now, content storage<br \/>\nis starting to move from my own computer or my hard-drives into the<br \/>\ncloud &#8211; and I think this is very good news for content creators, publishers<br \/>\nand rights-holders because it makes it even easier to engage and up-sell<br \/>\nto those <a href=\"http:\/\/www.mediafuturist.com\/2010\/01\/midemnet-2010-my-presentation-new-generatives-selling-music-in-a-connected-world.html\" >new<br \/>\ngeneratives<\/a>. Crucially, the<br \/>\nanswer to the constant quest of monetization is also in the cloud: I<br \/>\nbelieve most people will soon stop sharing the actual media files (since<br \/>\nthey are getting increasingly larger and larger, and therefore more<br \/>\nunwieldy) and will share only the links, the bookmarks, the metadata<br \/>\nor the tags, and that should be a boon for the content industries. <\/p>\n<p>The perfect test bed<br \/>\nfor &#8216;Media as a Service&#8217; (MaaS) may unfold soon, with Apple&#39;s new<br \/>\niPad or Google&#8217;s Tablet (hopefully). Extending the concepts mentioned<br \/>\nabove, rather than blocking my wife or my kids from sharing an eBook<br \/>\nwith me it would be much more logical if I could easily read her book,<br \/>\nas well; but beyond the &#8216;copy of the words&#8217; all else would not be<br \/>\navailable without a micro-transaction on my part, i.e. I would not have<br \/>\ninstant access to the cool video clips, the updated links, the footnotes,<br \/>\nthe ratings, etc; i.e. all that valuable context that will make eBooks<br \/>\nso much more powerful would be out of my reach until I validate my own<br \/>\naccess.  <\/p>\n<p>The bottom line: content<br \/>\nsharing isn&#39;t the real problem: high price points, outmoded, pre-web<br \/>\ntoll-booth concepts, broken relationships and processes, low values<br \/>\nfor high prices, bad technology and service, and utter lack of conversation<br \/>\nand engagement are.   <\/p>\n<p>Here is my message to<br \/>\npublishers and content owners: lower the prices for access to your content<br \/>\nto the point of unanimous excitement, use open standards and technology<br \/>\nplatforms that work for everyone, everywhere; bundle and package as<br \/>\nattractively as you can (then: repeat). Team up with ISPs, mobile operators,<br \/>\nadvertisers and device makers.  <\/p>\n<p>Remove all the reasons<br \/>\nthat your users may have to avoid your new toll-booths and skip the<br \/>\ndesired conversion to &#39;paid&#39; &#8211; the lower the hurdle for legitimate usage<br \/>\nand paid engagement, the higher the added values, the less you will<br \/>\nhave to worry about &#39;competing with free&#39;.<\/p>\n<p><a href=\"http:\/\/techdirt.com\/articles\/20100326\/1452138737.shtml\">Permalink<\/a> | <a href=\"http:\/\/techdirt.com\/articles\/20100326\/1452138737.shtml#comments\">Comments<\/a> | <a href=\"http:\/\/techdirt.com\/article.php?sid=20100326\/1452138737&#038;op=sharethis\">Email This Story<\/a><br \/>\n <br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<a href=\"http:\/\/ads.pheedo.com\/click.phdo?s=ddc4bd54ee3f8363169d4bf608023cbd&#038;p=1\"><img decoding=\"async\" alt=\"\" style=\"border: 0;\" border=\"0\" src=\"http:\/\/ads.pheedo.com\/img.phdo?s=ddc4bd54ee3f8363169d4bf608023cbd&#038;p=1\"\/><\/a><br \/>\n<img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"0\" width=\"0\" border=\"0\" style=\"display:none\" src=\"http:\/\/ib.adnxs.com\/seg?add=24595&#038;t=2\"\/><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.techdirt.com\/~ff\/techdirt\/feed?a=w0Beoa3rXIc:WapS2kE44N4:D7DqB2pKExk\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/techdirt\/feed?i=w0Beoa3rXIc:WapS2kE44N4:D7DqB2pKExk\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.techdirt.com\/~ff\/techdirt\/feed?a=w0Beoa3rXIc:WapS2kE44N4:c-S6u7MTCTE\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/techdirt\/feed?d=c-S6u7MTCTE\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/techdirt\/feed\/~4\/w0Beoa3rXIc\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If I received a dollar every time I get a question along the lines of &quot;how can the content industries compete with FREE?&quot; &#8212; I would be traveling first class everywhere I go. Underneath this question I often find my favorite toxic assumption: &quot;less control over distribution means less money.&quot; This belief is as tired [&hellip;]<\/p>\n","protected":false},"author":6752,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-526417","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/526417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6752"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=526417"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/526417\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=526417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=526417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=526417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}