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10.22.2004
The New Business Model Argument Again
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There's an article by Rob Kasunic on the Stanford copyright site assessing the iPod as a "marketplace" solution to the P2P problem. (I assume that by "marketplace" solution the author means "market" solution? The usage strikes me as a little odd--"marketplace" seems to refer more to an actual localized physical market, like a bazaar or flea market or a village square on market day, than to the broad economic system or set of institutions modern economists refer to as "the market." But nineteenth century economists also use "market" more ambiguously; often, quaintly, they seem to be referring to the village square on market day).
Anyway, back to Rob Kasunic's article. If the iPod is indeed one of the answers to the P2P problem, does it need another evolutionary step? Steve Ballmer's misquoted remarks aside, it's at least plausible that much music on iPod's is illegal downloads; furthermore RealNetworks has cracked the iPod-iTunes link. Maybe this is the best the market can do in a universe of seamless low-cost transmissions and high-quality copies--a world without the ordinary boundaries that entrepreneurs would rely on to establish what "package" they are selling.
In any case, note that those who continually urge the content industry to "get a new business model" haven't stopped saying that, so apparently the iPod isn't it. Which leaves one wondering, what business model exactly *would* satisfy those who wish to download music for free?
We seem to have come a long way from the marketplace.
posted by Solveig Singleton : 10/22/2004 03:25:13 PM
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