Random thoughts and musings written by me. Usually at 2AM.

Sorry. Your business model is broken.

July 21st, 2009 Posted in Uncategorized

It’s time that someone sat you down, and explained a few things to you.  The world changed.  And if you’re in any type of media, advertising, or media distribution business, your business model is now permanently broken and useless.  If you continue to think you can somehow ‘fix it’, or ‘make it work’, you’re going to lose all your money and go bankrupt.  I’m sorry, but it’s true.  I know that the way we sold advertising, newspapers, magazines, books, music, movies, and television had worked for decades (if not centuries), but then the internet came.  And now everything is different, and you can’t undo it.  I’m sorry.

If you have a newspaper publishing business, your business model is broken.

If you have a music business, your business model is broken.

If you have a movie making business, your business model is broken.

If you have a magazine publishing business, your business model is broken.

If you have a distribution business for any of these, your business model is broken.

Lots and lots of other business models are broken now, too, but I’m not going to list them all because it would take too long.

It CANNOT be fixed.  Stop trying.  You’re going to go broke.  Seriously.  Duplication and distribution of media are free now, because some people invented this internet thing, and it’s never going to go away.  You’ve been trying to create artificial scarcity through copyright  legislation and DRM, but as you can tell, it’s not going to work.  Not now, not ever.  You really need to come to terms with this.  You cannot legislate this into going away.  The internet changed lots and lots of things, and one of the things that it changed was the way that we share and distribute written, audio, and video content.  That cat is out of the bag, and trust me when I say that it’s never going back in.

There is a positive side, however.  There are also lots and lots of NEW business models that exist because of the internet.  Look at Trent Reznor. Or Dave Weinburger. Or just read anything that Michael Masnick has to say on the subject, because he’s smart, and he’s always right about this sort of thing.  Or hell, just listen to me.  I’m smart, too.  (Sometimes.)

Anyway, it has appeared for the last decade that there are many of you who just don’t understand the fundamental change that’s happened in the world, and I thought I would help explain it to you.  If you insist on staying in a business that is no longer viable (and remember, IT CANNOT BE FIXED through legislation.  You’ve already tried.), then I guess I don’t feel too bad about your impending bankruptcy.  I warned ya.

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