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<title>Techdirt. Stories filed under &quot;demand&quot;</title>
<description>Easily digestible tech news...</description>
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<image><title>Techdirt. Stories filed under &quot;demand&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Wed, 13 Mar 2013 13:12:11 PDT</pubDate>
<title>Warner Bros. Lets Veronica Mars Crew Prove Demand For A Movie Via Kickstarter</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130313/12234722314/warner-bros-lets-veronica-mars-crew-prove-demand-movie-via-kickstarter.shtml</link>
<guid>http://www.techdirt.com/articles/20130313/12234722314/warner-bros-lets-veronica-mars-crew-prove-demand-movie-via-kickstarter.shtml</guid>
<description><![CDATA[ Just a few weeks ago, we wrote about how Kickstarter was incredibly valuable not only as a pre-sales tool but as a way to <a href="http://www.techdirt.com/articles/20130220/09261722038/crowd-funding-also-method-proving-marketability-to-investors.shtml">prove marketability for investors</a>.  It appears that even some in Hollywood are recognizing this.  In a bit of a surprise move, Warner Bros. has allowed the folks from the critically acclaimed (but viewer-challenged) TV show <i>Veronica Mars</i> to <a href="http://www.kickstarter.com/projects/559914737/the-veronica-mars-movie-project" target="_blank">launch a massive Kickstarter campaign</a> to prove that there's demand for a <i>Veronica Mars</i> movie.  They put together a cute, mostly in-character video to explain the details:
<center>
<iframe width="480" height="360" src="http://www.kickstarter.com/projects/559914737/the-veronica-mars-movie-project/widget/video.html" frameborder="0"> </iframe>
</center>
They need to hit $2 million to get the greenlight from Warner.  The money will go into the budget of the film, which has the original actors and the show creator/writer returning (excitedly) to make this a reality after years of talking about the possibility but not having enough believers at Warner.
<br /><br />
This is fascinating on a variety of levels.  First, it serves as a simple reminder that Kickstarter works as a demand-confirmation tool.  Second, and perhaps more interestingly, it suggests ways that traditional Hollywood can integrate with something like Kickstarter at times.  While some of <a href="http://www.techdirt.com/articles/20120423/01452218599/bands-ex-manager-accuses-reddit-profiting-piracy-debate-with-co-founder.shtml">old world Hollywood</a> likes to insist that Kickstarter could never be used to fund a "real" movie, it appears that some more progressive-thinking folks at Warner are willing to give this a shot.  From show creator Rob Thomas' explanation:
<blockquote><i>
Of course, Warner Bros. still owns Veronica Mars and we would need their blessing and cooperation to pull this off. Kristen and I met with the Warner Bros. brass, and they agreed to allow us to take this shot. They were extremely cool about it, as a matter of fact. Their reaction was, if you can show there&#8217;s enough fan interest to warrant a movie, we&#8217;re on board. So this is it. This is our shot. I believe it's the only one we've got. It's nerve-wracking. I suppose we could fail in spectacular fashion, but there's also the chance that we completely revolutionize how projects like ours can get made. No Kickstarter project ever has set a goal this high. It's up to you, the fans, now. If the project is successful, our plan is to go into production this summer and the movie will be released in early 2014. 
</i></blockquote>
It would appear that his nerves need not be wracked for all that long.  Within just a few hours, many thousands of fans had jumped on board, and they'd already passed $1 million and were well on their way to $2 million, and probably significantly beyond that (there are still 30 days to go!)
<center>
<iframe frameborder="0" height="380" src="http://www.kickstarter.com/projects/559914737/the-veronica-mars-movie-project/widget/card.html" width="220"></iframe>
</center>
Separately, one of the things that doesn't get that much attention in crowdfunding campaigns is the importance of having cool rewards, and it looks like the Veronica Mars crew did a good job.  They have a lot of options, with the lowest one being getting a script of the movie on the day it comes out.  Surprisingly, they're also promising a digital download "a few days" after the movie's theatrical debut.  That will be interesting to see in practice, since theaters have balked (stupidly) at showing films that have too small a "window" between theatrical release and digital release.  Hopefully theaters aren't so short-sighted in this case, and will realize that many Veronica Mars fans will likely want to see the film on the big screen even if they're getting the digital version.
<br /><br />
Other reward levels include the standard stuff like t-shirts, DVDs and posters (some of them signed), as well as more advanced options like voicemail or video greetings from the actors (Kristen Bell costs more, not surprisingly), hanging out on the set, a role in the movie, tickets to the premiere and more.  What's impressive is that most of the high end items are sold out already -- within just a few hours of the launch.
<br /><br />
Of course, this makes you wonder why Warner Bros. was so unsure that there would be a market for this movie in the first place.  Still, kudos to the studio for being willing to jump on board with this kind of experiment.<br /><br /><a href="http://www.techdirt.com/articles/20130313/12234722314/warner-bros-lets-veronica-mars-crew-prove-demand-movie-via-kickstarter.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130313/12234722314/warner-bros-lets-veronica-mars-crew-prove-demand-movie-via-kickstarter.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130313/12234722314/warner-bros-lets-veronica-mars-crew-prove-demand-movie-via-kickstarter.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-market-research-platform</slash:department>
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<pubDate>Thu, 13 Dec 2012 12:29:00 PST</pubDate>
<title>Time Warner Cable Doesn't Think There's Demand For Google Fiber</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml</link>
<guid>http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml</guid>
<description><![CDATA[ It's sometimes cute to see the big broadband providers in denial about what consumers want (and how little they do to provide it).  With Google Fiber getting so much <a href="http://www.techdirt.com/blog/innovation/articles/20120726/11200919842/google-fiber-is-official-free-broadband-up-to-5-mbps-pay-symmetrical-1-gbps.shtml">attention</a> in Kansas City, Time Warner Cable has been looking rather dated lately.  In trying to compete, it's offering <a href="http://www.kansascity.com/2012/11/29/3939542/time-warner-wireless-hotspots.html" target="_blank">cheaper service</a> to families with kids and increasing WiFi hotspots, but that hardly seems compelling compared to the massive speeds at low prices that Google is offering.
<br /><br />
However, Time Warner Cable's latest strategy is complete denial: arguing that <a href="http://www.dslreports.com/shownews/Time-Warner-Cable-Says-Demands-Not-There-for-Google-Fiber-122337?utm_source=dlvr.it&#038;utm_medium=twitter" target="_blank">there isn't really demand for Google Fiber</a>.  The evidence?  If there was demand, then Time Warner Cable would be offering a service like that already.  Logic!
<blockquote><i>
"If there is demand for [1 Gbps] service we will provide it," Time Warner Cable chief operating officer Rob Marcus told attendees of a conference this week while discussing Google Fiber. Speaking at the <a href="http://www.broadcastingcable.com/article/490736-OnScreen_Summit_Marcus_TWC_Could_Boost_Speeds_In_KC_Google_Battle.php">Broadcast and Cable/Multichannel News OnScreen Summit</a> yesterday, Marcus stated that while the company may eventually have to raise speeds to compete with Google Fiber, so far the company hasn't had to.<br /><br />
Granted at the moment Google Fiber's footprint is minuscule. Marcus claims that Google Fiber's deployment currently only impacts about 100,000 broadband customers, and around 100,000 cable TV customers. The COO also spent plenty of time downplaying the need for 1 Gbps services, and questioning consumer demand for such speeds.
<br /><br />"It will be interesting to find out whether there are applications that will take advantage of a 1 Gbps service," Marcus said. "If there is, we will provide it. Our infrastructure has the ability to provide much faster speeds today. We're prepared to compete head to head with Google."
</i></blockquote>
The thing is, you don't look to provide the faster speeds <i>after</i> the applications are there to take advantage of it.  That's getting the equation backwards.  And, of course, there are significant questions as to whether or not TWC <i>could</i> even offer such speeds.  But showing up well after there are applications and services that use it, means being way late to the party.<br /><br /><a href="http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>in-denial</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121207/09304721307</wfw:commentRss>
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<pubDate>Thu, 21 Jun 2012 15:15:00 PDT</pubDate>
<title>Seth Godin Uses Kickstarter To Test The Market For His Next Book (And The Results Are Good)</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120619/02450719377/seth-godin-uses-kickstarter-to-test-market-his-next-book-results-are-good.shtml</link>
<guid>http://www.techdirt.com/articles/20120619/02450719377/seth-godin-uses-kickstarter-to-test-market-his-next-book-results-are-good.shtml</guid>
<description><![CDATA[ As a few people sent in, famed author Seth Godin is doing <a href="http://www.kickstarter.com/projects/297519465/the-icarus-deception-why-make-art-new-from-seth-go" target="_blank">an interesting experiment with Kickstarter</a>, where he has teamed up with a publisher who essentially wanted to use the platform to prove there's significant demand for Godin's next book.  Basically, if he could effectively sell pre-orders for the project to raise $40,000, then the publisher would invest in the project as well and support getting it into bookstores and putting a promotional campaign behind it.  It took Godin <a href="http://www.kickstarter.com/projects/297519465/the-icarus-deception-why-make-art-new-from-seth-go/posts/249168" target="_blank">less than <i>three hours</i></a> to surpass that goal (and then go way, way beyond it as well).
<center>
<iframe frameborder="0" height="380px" src="http://www.kickstarter.com/projects/297519465/the-icarus-deception-why-make-art-new-from-seth-go/widget/card.html" width="220px"></iframe>
</center>
<br />
Godin makes a strong point about how the traditional process, of investing a ton of money upfront, without knowing if there's really demand, is inherently risky for traditional publishers (and studios and labels).  This is one area where a platform like Kickstarter is quite interesting beyond just the "fundraising" side of things.  It can also be a tool for gauging demand for a project. 
<br /><br />
In fact, some others have been recognizing exactly that.  Andy Baio recently wrote a column at Wired, in which he talks about <a href="http://www.wired.com/opinion/2012/06/opinion-baio-fan-funding/" target="_blank">using Kickstarter as a way to judge demand</a> for something without having to put forth that initial capital expenditure.
<br /><br />
Of course, once you realize that it can be a <i>demand</i> platform, rather than purely a funding platform, interesting possibilities open up:
<blockquote><i>
As far as I can tell, nobody&#8217;s flipped it around and tried to commission a musician to play for fans. Most bands already play corporate events and private parties. If fans collectively raise the same amount of money, why not play a house show for them instead? For fans, it&#8217;d be a once-in-a-lifetime experience to see an artist they love in an intimate setting. For musicians, it&#8217;d pay well without the malaise that comes from playing the Intel holiday party.
</i></blockquote>
In other words, as a demand platform, Kickstarter (or others) can be used to demonstrate demand (and actual money) for something that people want to come into existence, and then people can figure out how to make it happen.  That's pretty powerful just for being different than how things have been done before.
<br /><br />
That's not to say that this makes sense for everything, or that there aren't risks associated with it.  Execution matters, and paying up at the demand stage can lead to disappointment if the eventual product doesn't live up to expectations (or, worse, never actually gets made).  So there's a different kind of risk there, though one that is likely to be more distributed.  There is also the risk of "failure."  A good idea that may not be explained well at this stage may not come to fruition.  But, in the end, these are really just flipsides to the traditional risk taken by gatekeepers.  It's just that it's getting moved around, and done in a way that actually decreases the overall burden of the risk, which makes it possible to create more with less overhead (a good thing for everyone!)
<br /><br />
And, remember, we're really only in the first few years of these types of efforts.  Kickstarter, which gets most of the attention, is just three years old.  Imagine where things will be 10 years from now.<br /><br /><a href="http://www.techdirt.com/articles/20120619/02450719377/seth-godin-uses-kickstarter-to-test-market-his-next-book-results-are-good.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120619/02450719377/seth-godin-uses-kickstarter-to-test-market-his-next-book-results-are-good.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120619/02450719377/seth-godin-uses-kickstarter-to-test-market-his-next-book-results-are-good.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>demand-proofing</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120619/02450719377</wfw:commentRss>
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<pubDate>Tue, 11 Oct 2011 15:56:03 PDT</pubDate>
<title>WIPO Article About Manga Piracy Describes Publishers' Failure To Meet Demand In Graphic Detail</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20111009/13463416268/wipo-article-about-manga-piracy-describes-publishers-failure-to-meet-demand-graphic-detail.shtml</link>
<guid>http://www.techdirt.com/articles/20111009/13463416268/wipo-article-about-manga-piracy-describes-publishers-failure-to-meet-demand-graphic-detail.shtml</guid>
<description><![CDATA[ Somehow you rather expect the head of the WIPO to come out with a statement on the potential benefits of <a href="http://www.techdirt.com/articles/20111010/01075216275/no-wipo-boss-did-not-says-web-would-have-been-better-if-patented-his-comment-was-still-nonsensical.shtml">patenting</a> the World Wide Web.  But you probably don't look to the WIPO website to carry stuff like this:
<br /><br />
<blockquote><i>
Like most comics, manga (roughly translated as "whimsical pictures") is rooted in sequential art - a narrative made up of images and presented in sequence. The earliest examples of Japanese sequential art are thought to date from the 12th century Ch&#333;j&#363; Jinbutsu Giga animal scrolls.
<br /><br />
The term "manga" is believed to have been first used by the renowned 16th [sic] century woodblock print (ukiyo-e) artist, Katsushika Hokusai (1760-1849).
</i></blockquote>
That's taken from <a href="http://www.wipo.int/wipo_magazine/en/2011/05/article_0003.html">an article called "The Manga phenomenon" published in the September 2011 edition of the "WIPO Magazine"</a> (who knew that such a thing existed?)  But why exactly has WIPO developed this sudden interest in manga?  You probably guessed this was coming:
<blockquote><i>
Manga continues to enjoy a broad global appeal but the industry is suffering acutely from the scourge of piracy.
</i></blockquote>
Here's the WIPO article's explanation of what happened:
<blockquote><i>
When it was first launched internationally, manga occupied a niche market in many countries. However, it soon captured the imagination of readers around the world, spawning an enthusiastic international fan base that became increasingly frustrated by the inability to access the same content as their Japanese counterparts. The need to translate manga from Japanese meant there were inevitable delays in their international release. Moreover, many titles were never released internationally because they were deemed inappropriate for specific markets, were unsuccessful in Japan, or were only published locally by independent publishers.
<br /><br />
The Internet offered fans a wonderful solution. Many learned Japanese, acquired the original manga, then scanned, translated, edited and posted them on the Internet for free downloading. Alas, what began as a practice driven by enthusiastic fans has become a serious blight on the industry. So-called scanlation - the act of scanning, translating and posting manga on the Internet - is, in fact, striking at the heart of manga and threatening its very existence.
<br /><br />
Unauthorized scans or "raws" are typically generated by individuals who scan books into electronic format, a practice known as jisui, which translates as "to cook for one&rsquo;s self." With the uptake of e-book readers and computer tablets, jisui has become a fully-fledged business with the emergence of popular scanlation aggregator websites hosting thousands of manga episodes and making them available free of charge. Those who do scanlation rake in profits through advertising on their own websites and also earn points which can be turned into cash for each download made from an aggregator website.
</i></blockquote>
This shows that publishers were doing such a poor job meeting the demand for manga outside Japan that it drove some fans to go to the trouble of learning Japanese, acquiring the original manga, scanning them, translating them, editing and then posting them on the Internet.  That sounds like an incredible business <b>opportunity</b> for manga publishers to "rake in profits through advertising on their own websites," instead of letting others profit.  But unauthorized sites were left unchallenged, and flourished as a result:
<blockquote><i>
Scanlation groups, of which there are now well over a thousand, are perpetuating a highly corrosive form of piracy that is threatening the industry, causing global manga sales to plummet and forcing publishers to lay off staff. From 2007 to 2009, for example, U.S. manga sales fell by 30 percent forcing a leading publisher to lay off 40 percent of its workforce.
</i></blockquote>
What exactly were the manga publishers doing to staunch these losses overseas during the last four years? Absolutely nothing - they only started trying to capture all that lost revenue <b>this year</b>:
<blockquote><i>
But major manga publishers are fighting back by reaching out to manga fans in new ways. This year, Kadokawa Group Publishing Co. Ltd. (Kadokawa) simultaneously released a large number of popular titles in key Asian markets. Companies like Tezuka Productions are making available legal, electronic English-language versions of popular manga for tablet computers and, earlier this year the Japan Book Publishers Association launched a series of initiatives to clamp down on unauthorized scanlation activities.
</i></blockquote>
The question has to be: if it was clear that the scanlation groups were "raking in" profits from online manga, why weren't the publishers offering authorized copies to meet this huge demand back in 2007?
<br /><br />
This is a classic tale of old-style media companies refusing to seize the opportunities offered by the Internet's "wonderful solution" to foreign distribution.  Instead, the manga publishers assumed their customers would passively wait until some far-off day when authorized versions were finally made available.  And they seem to regard it as extraordinary that, being denied manga through official channels, those fans should be driven by their passion to find other ways to obtain the latest productions of the art form they loved so much.
<br /><br />
Of course, the WIPO article is silent on this massive failure by the publishers; instead, it falls back on the tired old rhetoric that piracy is "killing" manga:
<blockquote><i>
Rampant manga piracy is making it increasingly difficult for manga artists (mangaka) to earn a living from their work. Many rely on royalty payments to survive. These are modest at the best of times, especially for new artists, and are generally insufficient for most to make ends meet. Of Japan&rsquo;s estimated 3,000 professional mangaka, only around 10 percent earn enough to be able to devote all of their time and energy to their art. The simple truth is that if manga artists cannot earn a living from their art, there will be no manga.</i></blockquote>
The simple truth is that manga artists could have earned <b>much more</b> from their art had manga publishers not been too lazy to consider changing their old business models, and had started selling international customers online products they were clearly desperate to buy.
<br /><br />
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a><br /><br /><a href="http://www.techdirt.com/articles/20111009/13463416268/wipo-article-about-manga-piracy-describes-publishers-failure-to-meet-demand-graphic-detail.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111009/13463416268/wipo-article-about-manga-piracy-describes-publishers-failure-to-meet-demand-graphic-detail.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111009/13463416268/wipo-article-about-manga-piracy-describes-publishers-failure-to-meet-demand-graphic-detail.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>why-not-sell-them-what-they-want?</slash:department>
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<pubDate>Fri, 29 Jan 2010 17:33:09 PST</pubDate>
<title>Econ 101: Study Shows That If Record Labels Lowered Prices On Music, They Would Sell A Lot More</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100129/1221507975.shtml</link>
<guid>http://www.techdirt.com/articles/20100129/1221507975.shtml</guid>
<description><![CDATA[ Having talked with a bunch of music execs recently, as well as a few different companies that do analytics in the music space, one thing became clear: unlike most other industries, record label execs tend <i>not</i> to be particularly data or analytics-driven.  Let's just say they didn't get into the recording industry because they were good at math.  There are a few exceptions, obviously, but getting many industry execs to think logically and examine data isn't particularly easy.  This isn't that surprising, given how many examples of actions by big record label execs that make little to no sense when thought about analytically.
<br /><br />
Yet another study has come out suggesting that the industry has pricing all wrong, pointing out that the increase in sales from <a href="http://www.wired.com/epicenter/2010/01/labels-lower-music-prices-and-increase-your-profits-study-says" target="_blank">dropping the price of music would increase profits</a>.  And yet what has the industry been trying to do?  That's right: trying to <a href="http://www.techdirt.com/articles/20090106/1039003297.shtml">raise the price</a>.  The study suggested that the "optimal" price for music might be closer to $0.60 per track.  That still seems way too high to me when you look at how people flocked to services like Allofmp3.com, but in general I think the basic concept makes sense.  You can maximize revenue by dropping prices, but it doesn't seem like many record industry execs have realized that.<br /><br /><a href="http://www.techdirt.com/articles/20100129/1221507975.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100129/1221507975.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100129/1221507975.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>profit-maximization</slash:department>
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<pubDate>Fri, 31 Jul 2009 05:46:00 PDT</pubDate>
<title>Explaining Why 'If We Charge, People Will Pay' Thinking Is Misguided</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090730/0237125710.shtml</link>
<guid>http://www.techdirt.com/articles/20090730/0237125710.shtml</guid>
<description><![CDATA[ <a href="http://www.techdirt.com/profile.php?u=rosemwelch">Rose M. Welch</a> points us to a wonderful writeup by King Kaufman at Salon (whose sports column I miss -- but the value of his work about the future of journalism more than makes up for it), concerning the news that <a href="http://open.salon.com/blog/future_of_journalism/2009/07/29/photog_thrilled_to_get_peanuts_from_time" target="_new">Time Magazine used a stock photo it bought from iStockPhoto for a recent cover story</a>.  The photographer whose photograph was used was thrilled (as were some of the other photographers).  However, there was also a group of photographers who went on to berate him (the photographer) for getting screwed over by a "multi-billion dollar company."  Except, of course, they've missed the point.  The photograph had already been taken (it didn't take any more work by the photographer to do this) and he was perfectly happy to get money he wouldn't have received otherwise -- even if it was a small amount.  From there, Kaufman goes into beautiful beat down mode, and explains how the complaining photographers are flat-out wrong... while also comparing the situation to journalists who say the answer is to just put up a paywall and magically people will pay.  It's so good, that I'm quoting a large portion of it, but go read the whole thing as well (and then follow that blog):
<blockquote><i>
Saying that if photographers all refused to do stock photography they'd all get paid more is like saying that if restaurants all refused to give customers napkins without charging they'd all make a bundle on napkin sales. It's like saying that if local bands refused to play for drinks at dive bars, they'd all make good money playing music.
<br /><br />
It's also like saying that if news organizations stopped giving away content on the Web, people would pay for news content online. It's absurd.
<br /><br />
The posters in that forum who are making that argument are failing, or refusing, to understand basic economics, if not human nature. All photographers are not going to refuse to do stock photography. The ones who do refuse will simply be opening up the market for those willing to sell their pictures cheaply, either because they're not in it for the money or because they can make a profit on volume.
<br /><br />
And those arguing that Time should have paid more for this stock photo because it sometimes pays more for other photos, or because it has a lot of money, are forgetting a little thing called supply and demand.
<br /><br />
We should note, though, that because Time prints so many copies, it is likely it had to pay iStockphoto for an unlimited-run license, and that its cost was more like $125 than $30. Still nowhere near thousands, and we should also note that Lam, the photographer, was thrilled with his Time cover at a price of $30, and plenty of his colleagues were thrilled for him.
<br /><br />
The same pricing dynamic is in play in journalism. The price is not set by how much time, effort, talent or experience went into making the product, and it's not set by how much money the customer has. It's set by supply and demand. The supply of stock photography is very large. The supply of general news content is huge.
<br /><br />
If Time hadn't found Lam's stock photo of coins in a jar for $30, or $125, it would have found a similar photo for a similar price. If news consumers can't get their news online for free from their favorite news organization, they'll find it for free somewhere else.
<br /><br />
What happened with Lam's photo is not a failure of the system, not a case of photographers eating their own and not a matter of big, rich Time magazine taking advantage of the little guy. I doubt those photographers would expect Time, because it has such a big budget, to pay $3 for a postage stamp or $20 a pound for the office coffee.
<br /><br />
What happened with Lam's photo is simply the way the industry works. Time paid what it paid for that image because that's about what it was worth.
<br /><br />
When the barrier to entry is low, the supply of goods is large and the alternatives available to the buyer many, the price is going to be low. Wishing it were otherwise, as the photographers are doing in that online forum and as opponents of free content do in Future of Journalism nerdland, will not make it otherwise. 
</i></blockquote>
Indeed.  What Kaufman describes is the same sort of economic illiteracy that we run into in conversations all the time.  People feel that because they don't like the way things work, they need to either blame those who are happy with the way things work or to blame those of us who are simply explaining the economics of supply and demand to them.  It's a blame the messenger sort of thing.  If I could create a world where photographers and journalists could magically make tons of money, I would.  That would be great.  But, that's not the world we live in, and pretending it is (or pretending you can simply start charging high amounts and people will keep paying) doesn't help matters.  Instead, figuring out ways to understand the economics at play, and then looking for <a href="http://www.techdirt.com/rtb.php?tid=400" target="_new">ways to take advantage</a> of those basic economics, seems to make the most sense.  This is not about what "should" happen or what people would "like" to happen.  It's about what is happening, and learning to take advantage of it.<br /><br /><a href="http://www.techdirt.com/articles/20090730/0237125710.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090730/0237125710.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090730/0237125710.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>go-King-go</slash:department>
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<pubDate>Wed, 1 Jul 2009 22:56:12 PDT</pubDate>
<title>Tehran Bureau Shows That If There's A Need, Reporting Will Get Done</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090629/1202465404.shtml</link>
<guid>http://www.techdirt.com/articles/20090629/1202465404.shtml</guid>
<description><![CDATA[ The rallying cry of newspaper old timers who insist that "reporting" will die off if newspapers go away, but that ignores the fact that, if there's a true need, reporting will find a way.  Andy Roon points us to <a href="http://www.npr.org/templates/story/story.php?storyId=105929814" target="_new">a story about The Tehran Bureau</a>, a news publication about events in Iran... that is published out of a small house in suburban Massachusetts.  It's a mostly volunteer effort, to be sure, but it has tremendously accurate and detailed info about what's going on in Iran from people who care about these things -- and the information is being quoted and referred to by major media organizations who don't actually have Tehran bureaus themselves.  I'm not saying (even though some will falsely claim this) that this volunteer model is "the model" for news.  I'm just pointing out -- once again -- that if there's a real need for reporting on a certain topic, it's amazing that motivated people will find a way to make it happen.<br /><br /><a href="http://www.techdirt.com/articles/20090629/1202465404.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090629/1202465404.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090629/1202465404.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it-happens</slash:department>
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