After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
The Newspaper Packaging
Print newspapers offer package deals of subsidized content (sold for a
token amount) and subsidizing advertising. In other words, the
advertisers pay for content formation and generation and the reader has
no choice but be exposed to commercial messages as he or she studies
the contents.
This model - adopted earlier by radio and television - rules the
Internet now and will rule the wireless Internet in the future. Content
will be made available free of all pecuniary charges. The consumer will
pay by providing his personal data (demographic data, consumption
patterns and preferences and so on) and by being exposed to advertising.
Thus, content creators will benefit only by sharing in the advertising
cake. They will find it increasingly difficult to implement the old
model of royalties paid for access or ownership of intellectual
property. The venerable (and expensive) "Encyclopaedia Britannica" is
now fully available on-line, free of charge. Its largesse is supported
by advertising.
Disintermediation
A lot of ink has been spilt regarding this important trend. The removal
of layers of brokering and intermediation - mainly on the manufacturing
and marketing levels - is a historic development (though the
continuation of a long term trend). Consider music for instance.
Streaming audio on the Internet or MP3 files, which the consumer can
download will render the CD obsolete. The Internet also provides a
venue for the marketing of niche products and reduces the barriers to
entry previously imposed by the need to engage in costly marketing
("branding") campaigns and manufacturing activities.
This trend is also likely to restore the balance between artist and the
commercial exploiters of his product. The very definition of "artist"
will expand to include all creative people. Everyone will seek to
distinguish oneself, to "brand" himself and to auction her services,
ideas, products, designs, experience, etc. This is a return to
pre-industrial times when artisans ruled the economic scene. Work
stability will vanish and work mobility will increase in a landscape of
shifting allegiances, head hunting, remote collaboration and similar
labour market trends.
Market Fragmentation
In a fragmented market with a myriad of mutually exclusive market
niches, consumer preferences and marketing and sales channels -
economies of scale in manufacturing and distribution are meaningless.
Narrow casting replaces broadcasting, mass customisation replaces mass
production, a network of shifting affiliations replaces the rigid
owned-branch system. The decentralized, intrapreneurship-based
corporation is a late response to these trends. The mega-corporation of
the future is more likely to act as a collective of start-ups than as a
homogeneous, uniform (and, to conspiracy theorists, sinister)
juggernaut it once was.
Return
Scavenger Economies, Predator Economies
Public-domain text, read in full here on John Shaqi.
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