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<title>Techdirt. Stories filed under &quot;middlemen&quot;</title>
<description>Easily digestible tech news...</description>
<link>http://www.techdirt.com/</link>
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<image><title>Techdirt. Stories filed under &quot;middlemen&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Fri, 14 Dec 2012 09:58:00 PST</pubDate>
<title>Are The Old Enablers Becoming The New Gatekeepers?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121214/00194921385/are-old-enablers-becoming-new-gatekeepers.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121214/00194921385/are-old-enablers-becoming-new-gatekeepers.shtml</guid>
<description><![CDATA[ We've argued, for a long time, that just railing against "middlemen" misses the point.  There are always middlemen.  But not all middlemen are created equal.  The distinction, that we've discussed multiple times, is the difference between <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml">enablers and gatekeepers</a>.  That is, historically, many middlemen came to power because they were gatekeepers.  If you wanted to do something -- be a musician, write a book, sell a new product -- you effectively had to get "approval" and support from a gatekeeper who had access to those markets.  Being a gatekeeper gave them enormous power, such that the gatekeepers often became <i>central</i> to the market, rather than the people/companies they were working with and it also allowed them to craft ridiculous deals that were incredibly favorable to themselves, at the expense of those they were working with.  That, of course, is why there tends to be so much inherent antipathy towards traditional gatekeepers.
<br /><br />
In contrast to that -- and what we found most exciting about many of the new companies that had popped up over the last decade or two -- was the rise of middlemen as "enablers."  These were situations where the middlemen weren't gatekeepers, and weren't "required" to do what you wanted to do.  Instead, they were companies that helped give people/organizations a lift up on what they were trying to do, while keeping them and their work (rather than the middlemen) central to the market.  So, when you see things like eBay or Etsy or Kickstarter, those are more enablers (and, yes, they do have some restrictions on use, but they're more <i>policy based</i>, rather than "can you make us money"-based).
<br /><br />
Of course, the truth is that there's a <i>spectrum</i> along which these middlemen lie.  It's not two separate buckets, where "enablers" are here and "gatekeepers" are there.  Rather, intermediary companies often fall somewhere along that spectrum.  It seems somewhat clear that, for the most part, <i>newer</i> firms are becoming successful by being enablers, rather than gatekeepers.  But... they don't necessarily remain enablers their whole lives.  One thing that is worth paying close attention to, is how companies shift over time, and when they start to shift from being enablers to being gatekeepers.
<br /><br />
In fact, it seems like some of the big "clashes" we've been seeing in the tech/web world lately are along those lines.  Lots of people have talked about <a href="http://www.economist.com/blogs/babbage/2012/12/economist-explains" target="_blank">Instagram and Twitter fighting with each other</a>, which is just the latest in a series of "fights" among hot web companies blocking each other.  Considering that many of these companies grew up on a web 2.0 ethos of openness and sharing -- and we're now watching them get more locked down, proprietary and limiting -- it seems obvious that some of these companies are moving along the spectrum from enabler to gatekeeper.
<br /><br />
Anil Dash recently wrote a great post in which he frets about the fact that <a href="http://dashes.com/anil/2012/12/the-web-we-lost.html" target="_blank">we're effectively losing key parts of the open web</a>, which made the web great.  You should read the whole post, as I couldn't do it justice summarizing it here.  Again, it seems like many of his points are really about some of the more successful "internet" companies moving along that spectrum more towards the gatekeeper side of things, and that clashing with the more open spirit that the enablers built their reputations on.  Dash, rightly, points out that this is self-correcting over time.  We shouldn't necessarily fear the new gatekeepers, mainly because a gatekeeper business model, while lucrative in the short-term, is <i>unsustainable in the long term</i>.  Companies, which move along that chain chasing the easy money, need to learn that they do so at their own peril.  Becoming a gatekeeper merely <i>opens up massive opportunity for a new enabler to disrupt you</i>.  That's a lesson that too many companies learn way too late.
<br /><br />
That said, Dash fears that because a new generation is growing up in a world with more closed systems, that we may lose some generational knowledge of what came before:
<blockquote><i>
<p>This isn't some standard polemic about "those stupid walled-garden networks are bad!" I know that Facebook and Twitter and Pinterest and LinkedIn and the rest are <b>great</b> sites, and they give their users a lot of value. They're amazing achievements, from a pure software perspective. But they're based on a few assumptions that aren't necessarily correct. The primary fallacy that underpins many of their mistakes is that user flexibility and control necessarily lead to a user experience complexity that hurts growth. And the second, more grave fallacy, is the thinking that exerting extreme control over users is the best way to maximize the profitability and sustainability of their networks.</p>

<p>The first step to disabusing them of this notion is for the people creating the next generation of social applications to learn a little bit of history, to <b>know your shit</b>, whether that's about <a href="http://dashes.com/anil/2010/04/ten-years-of-twitter-ads.html">Twitter's business model</a> or <a href="http://dashes.com/anil/2012/04/why-you-cant-trust-tech-press-to-teach-you-about-the-tech-industry.html">Google's social features</a> or anything else. We have to know what's been tried and failed, what good ideas were simply ahead of their time, and what opportunities have been lost in the current generation of dominant social networks.</p>
</i></blockquote>
I both agree and disagree.  I'm among those who get a bit frustrated when I see new entrepreneurs trying something that was done before -- and they seem to have no knowledge of it (ditto for reporters who cover the big "new thing" without mentioning that half a dozen companies did exactly the same thing a decade earlier).  But, some of that, I'll admit, may just be the onset of old fogeyism.  Yes, there's value in knowing the past, and learning from it, but there is also value in the naivete with which some new entrepreneurs jump into the pool -- often not fully understanding the past.  Will they repeat some of the mistakes?  Sure.  Absolutely.  But not being burdened with the past can sometimes be a key ingredient in redoing something that failed in the past, and in somehow making that slight unexpected tweak that <i>just makes it work</i>.
<br /><br />
So, I agree wholeheartedly that the "new gatekeepers" mean that we've lost some sense of what made the last generation of internet companies great.  And I do hope that the next generation that comes along can similarly disrupt the last generation, often by being the enablers that break up their new gatekeeper role.  And I think that companies who understand the history of how enablers disrupt gatekeepers should understand why progressing down that spectrum in search of short-term profits can lead to long-term pain.  So I think it's wise for <i>those companies</i> to learn from history.  But I'm less worried about the new entrepreneurs jumping into the space.  They'll likely find their opportunities in being the new enablers, because that's where the disruption occurs.
<br /><br />
Watching the cycles of innovation can be a fascinating (and at times frustrating) past time.  Companies make the same mistakes over and over again.  The ones, which actually don't fall for the usual traps, are few and far between.  But, in the long run, the new startups tend to be pretty good at showing the old guard that they chose the wrong path.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121214/00194921385/are-old-enablers-becoming-new-gatekeepers.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121214/00194921385/are-old-enablers-becoming-new-gatekeepers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121214/00194921385/are-old-enablers-becoming-new-gatekeepers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>watch-out</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121214/00194921385</wfw:commentRss>
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<pubDate>Thu, 15 Nov 2012 00:11:00 PST</pubDate>
<title>Literary Agent: Authors Don't Need Middlemen, They Need Partners</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20121108/18350920980/literary-agent-authors-dont-need-middlemen-they-need-partners.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20121108/18350920980/literary-agent-authors-dont-need-middlemen-they-need-partners.shtml</guid>
<description><![CDATA[ One of the false impressions our frequent detractors seem to pick up from the stories covered here is that Techdirt hates middlemen. This couldn&#39;t be <a href="http://www.techdirt.com/articles/20091208/0259297245.shtml" target="_blank">further from the truth</a>. Mike Masnick has often stated that middlemen <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml" target="_blank">can be extremely useful</a>. The problem is, most middlemen aren't. Most middlemen in disrupted industries continue to stake a claim to territory that is no longer theirs, insisting that their presence is still needed, or at the very least, that they be paid their tribute regardless of their actual worth. In essence, they attempt become gatekeepers, something no industry truly needs.<br />
<br />
<a href="http://www.the-digital-reader.com/" target="_blank">Nate Hoffelder</a> sends over a story highlighting the difference between useful middlemen worth their pay and position and middlemen whose claim to a slice of the pie is solely based on an overestimation of their own indispensability. Jim McCarthy, a literary agent for Dystel &#038; Goderich Literary Management, gives his account of a recent writer's conference, <a href="http://www.dystel.com/2012/11/when-agents-attack/" target="_blank">one in which several agents fiercely guarded their disappearing territory</a>.
<blockquote>
<i>A week and a half ago, I had the opportunity to go to the Novelists, Inc. 23rd Annual Conference. And on one of the panels I sat on, all the growing tension and dissatisfaction came to a head...</i><br />
<br />
<i>[O]ne of my co-panelists went after someone on the panel for "denigrating" agents and said he wouldn't stand for it. So I grabbed the mic and offered, as an agent, to denigrate agents for them. I believe very strongly that good agents are incredible partners and can bring authors more success (I'll get back to this). But more importantly at that exact moment, I was just suuuuuuper pissed. It was disgusting to watch another industry professional demean an author simply because they seemed to be chiseling away at his pedestal.</i></blockquote>
That's a strange way for a group of people to treat potential clients, especially when the creation of legitimate self-publishing platforms have made the run-of-the-mill agent largely superfluous. If the agent cares for nothing more than finding a way to insert himself between the author and his earnings, then naturally he'll feel threatened by the many recent routes to success that completely bypass him.<br />
<br />
But there are agents who actually understand that their role, and the role of the publishing industry in general, is no longer what it once was. McCarthy explains:
<blockquote>
<i>Here's my take. The role of agents in the marketplace is changing dramatically. At DGLM, we've always prided ourselves on being a full-service agency. In the past few years, we've been aware that what "full-service" means is changing. As authors have more access to self-publishing and more success in doing that, agents need to be able not only to guide their clients through that process, but to be aware of the pitfalls, potential gold mines, and ways to strategize that are best for an individual project but also an author's entire career.</i></blockquote>
McCarthy notes that simply because a <i>good</i> agent can be beneficial to authors, it doesn't mean that <i>everyone</i> needs an agent, especially not a <i>bad</i> (or simply an average) agent. However, many in his field believe the latter to be the case, even as their confidence level has shifted from "This is how to get us" to the more desperate and demanding, "You <i>need</i> us." Even as he spoke to several others in his same field, his message was greeted with anger and defensiveness. McCarthy's point wasn't that agents are unneeded, but that agents unwilling to accept their new responsibilities and let go of their old habits have nothing to offer today's writers.<br />
<br />
Rather than feel threatened and become openly hostile and dismissive towards any writer that utters the phrase "self-publish," McCarthy is actively working to become an essential element of a writer's career.
<blockquote>
<i>What we're seeing is a balancing of power. Authors have more control of their careers and can be more demanding. Does that make my job easier? No. Does it make it more exciting? Yes. Because it's one thing to bandy the word "partner" around and make yourself sound friendly, which seems to be happening a lot. It's another thing to actually act like a partner.</i></blockquote>
Middlemen can be <i>extremely</i> useful, but they can't simply remain in the "middle" for no other reason than that's where they've been historically. No middleman can honestly state categorically "You <i>need</i> us." It simply isn't true anymore. But, if they're willing to recognize their new role in various content industries, they can be the best thing that's happened to their clients.<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20121108/18350920980/literary-agent-authors-dont-need-middlemen-they-need-partners.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121108/18350920980/literary-agent-authors-dont-need-middlemen-they-need-partners.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121108/18350920980/literary-agent-authors-dont-need-middlemen-they-need-partners.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>picking-fights-in-your-own-backyard</slash:department>
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<pubDate>Fri, 21 Sep 2012 08:23:02 PDT</pubDate>
<title>More Evidence That Legacy Gatekeepers Just Don't Understand Modern Business Models</title>
<dc:creator>Zachary Knight</dc:creator>
<link>http://www.techdirt.com/articles/20120919/19590220440/more-evidence-that-legacy-gatekeepers-just-dont-understand-modern-business-models.shtml</link>
<guid>http://www.techdirt.com/articles/20120919/19590220440/more-evidence-that-legacy-gatekeepers-just-dont-understand-modern-business-models.shtml</guid>
<description><![CDATA[ For a while now, we have written about how legacy gatekeepers need to adapt to modern culture and business models if they want to survive. The primary point of contention that keeps many of these companies from adapting is one of control. Many of them don&#39;t want to lose what remnants of control they have left in order to become <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml">enablers</a>. This mindset is what will be the death of many companies as the world moves on without them.<br />
<br />
Some companies are making at least a half-hearted, if not completely misguided, attempt at trying to be hip. However, it seems to have been about as successful as a 60 year-old trying to use modern slang in order to connect with kids. Take for instance this recent comment by Obsidian CEO Feargus Urquhart in which <a href="http://www.develop-online.net/news/42017/Obsidian-accuses-publishers-of-abusing-Kickstarter" target="_blank">he describes an exchange he had with a publisher about Kickstarter</a>.
<blockquote>
<i>We were actually contacted by some publishers over the last few months that wanted to use us to do a Kickstarter.</i><br />
<br />
<i>I said to them &lsquo;So, you want us to do a Kickstarter for, using our name, we then get the Kickstarter money to make the game, you then publish the game, but we then don&#39;t get to keep the brand we make and we only get a portion of the profits&rsquo; They said, &lsquo;Yes&rsquo;.</i></blockquote>
If you can&#39;t see the huge glaring flaw in the unnamed publisher&#39;s approach, let me elaborate. This publisher wanted to use Kickstarter as the funding source for an as yet unidentified project, while still keeping every other aspect of the traditional publisher/developer relationship intact. This means that the publisher would pay no money upfront, limiting almost all risk for the success of the project, while reaping all the rewards. Seriously.<br />
<br />
While it is great that this publisher had become aware of Kickstarter and its potential for <a href="http://www.techdirt.com/blog/casestudies/articles/20120208/23505717705/people-rushing-to-give-hundreds-thousands-dollars-just-hours-brand-new-adventure-game.shtml">success</a>, the fact remains that those in charge do not understand it in the slightest. The draw of Kickstarter and other crowdfunding services is to help <i>creators</i> fund their works and bring them to market. Few potential backers will be willing to support a project in which the creator loses all rights and control of the work after creation. These services are about empowering creators. A deal, such as the one above, in no way empowers the creator.<br />
<br />
Hopefully, this is just a simple misstep as the publisher learns to walk the unfamiliar path of a new business model. We can hope that this publisher learns from this mistake and will take the time to better understand the culture behind crowdfunding and can find success by adapting itself to this culture rather than trying to shoehorn crowdfunding into its current business strategy. Because if it isn&#39;t willing to adapt, it might as well give up now.<br /><br /><a href="http://www.techdirt.com/articles/20120919/19590220440/more-evidence-that-legacy-gatekeepers-just-dont-understand-modern-business-models.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120919/19590220440/more-evidence-that-legacy-gatekeepers-just-dont-understand-modern-business-models.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120919/19590220440/more-evidence-that-legacy-gatekeepers-just-dont-understand-modern-business-models.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-not-that-hard</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120919/19590220440</wfw:commentRss>
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<pubDate>Fri, 4 May 2012 07:26:00 PDT</pubDate>
<title>B&#038;N Removes Magazine From Nook Store Due To Feature Article On 'Hacking'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120503/13323818766/bn-removes-magazine-nook-store-due-to-feature-article-hacking.shtml</link>
<guid>http://www.techdirt.com/articles/20120503/13323818766/bn-removes-magazine-nook-store-due-to-feature-article-hacking.shtml</guid>
<description><![CDATA[ We've talked a lot about the difference between <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml">gatekeepers and enablers</a>, and how the latter are becoming more important than the former.  Both are types of middlemen, of course.  And there have been some reasonable discussions about how enablers can <i>become</i> gatekeepers at times.  Indeed, this is something to be aware of, and we should worry about it and speak out when we see evidence of it happening.  For example, ebook platforms have become great enablers, allowing lots of new written works to be published, promoted, distributed and sold.  In 2002, 250,000 books were published.  In 2010 the number was over 3 million -- with much of that being thanks to the easy publishing of ebooks, and the platforms that made it possible to publish a book without a gatekeeper.
<br /><br />
But... sometimes those enablers turn into gatekeepers.  Witness the news, <a href="http://yro.slashdot.org/story/12/05/03/1531247/bn-pulls-linux-format-magazine-over-feature-on-hacking" target="_blank">via Slashdot</a>, that Barnes &#038; Noble <a href="http://tuxradar.com/content/learn-hack-was-pulled-barnes-and-noble" target="_blank">removed Linux Format magazine from the Nook store</a> because the magazine dared to publish an article entitled <a href="http://www.tuxradar.com/content/learn-hack/" target="_blank"><i>Learn to Hack</i></a>.  It is true that they were using "hack" in the (increasingly less common) definition having to do with breaking into other computers and networks, but the framing of it was mostly around understanding these things to keep yourself secure.  Still, do we really want platforms like Barnes &#038; Noble acting as gatekeepers concerning what people can and cannot read?<br /><br /><a href="http://www.techdirt.com/articles/20120503/13323818766/bn-removes-magazine-nook-store-due-to-feature-article-hacking.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120503/13323818766/bn-removes-magazine-nook-store-due-to-feature-article-hacking.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120503/13323818766/bn-removes-magazine-nook-store-due-to-feature-article-hacking.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hacking-not-allowed</slash:department>
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<pubDate>Tue, 27 Mar 2012 12:48:00 PDT</pubDate>
<title>Harry Potter And The Missing Middlemen: Where The Pottermore Store Goes Wrong</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120327/07505718258/harry-potter-missing-middlemen-where-pottermore-store-goes-wrong.shtml</link>
<guid>http://www.techdirt.com/articles/20120327/07505718258/harry-potter-missing-middlemen-where-pottermore-store-goes-wrong.shtml</guid>
<description><![CDATA[ <p>Last summer, we praised JK Rowling for <a href="http://www.techdirt.com/articles/20110623/13155514828/six-years-later-jk-rowling-realizes-ebooks-are-good-idea-she-cuts-out-middleman.shtml">finally embracing ebooks</a>, and doing so in a way that made it seem like she really <em>got it</em>. That was when she announced <em>Pottermore</em>, her own website and store that would sell the Harry Potter ebooks directly to fans with no DRM. While the main Pottermore website is still in closed beta, several sources are reporting that <a href="http://shop.pottermore.com/" target="_blank">the store</a> is now open for business, selling both ebooks and audio books. Over at PaidContent, they have a <a href="http://paidcontent.org/article/419-you-can-buy-the-harry-potter-e-books-now/" target="_blank">thorough rundown</a> of the details on how it works.</p>

<p>Unfortunately, when you look at those details, the first thing that leaps out at you is the many small limitations, many of which are caused by Rowling's desire to route around the middlemen. As we've said before, <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml">middlemen are not bad</a>, as long as they serve as <em>enablers</em> rather than <em>gatekeepers</em>. Direct-to-fan business models are great, but that doesn't mean creators should ignore the tools that are available to them. Every author need not build their own ebook store, nor every band their own Bandcamp&mdash;and of course, for most creators this isn't even an option. But the Pottermore store serves as an example of why even creators like Rowling, who have the resources to build their own platforms for everything, shouldn't necessarily shun the enabler-middlemen at every turn.</p>

<p>For one thing, there was the timeframe. The store was originally supposed to launch last October, but was delayed until now, eight months after the announcement. Prior to this, there were no legal electronic copies of Harry Potter available <em>anywhere</em>&mdash;even though pirated copies of each book were available almost immediately. Had Rowling embraced existing ebook stores, she could have released electronic copies alongside physical ones, instead of making her fans wait (and often pirate) in the interval.</p>

<p>Then there are the unnecessary additional barriers to access the books. Downloading from Pottermore requires you to create yet another account with yet another website&mdash;a growing source of consumer fatigue online. Rowling has struck deals with major ebook stores to funnel people into her website, meaning if you pull up a Harry Potter title somewhere like the Kindle Store, you are asked to click through and set up a separate Pottermore account, then go through additional steps to link it to your Amazon account. Since many readers do all their ebook shopping this way, and since these stores have always focused on (and found success by) <em>reducing</em> the number of forms and clicks needed to buy a book, this is likely to put off a lot of customers. It also means the books won't be available in the iBook store, since Apple, with their trademark stubbornness, did not agree to a special deal alongside Sony, Amazon, Barnes &amp; Noble and Google. So Rowling is giving up the entire market for impulse buys on the most popular mobile devices in the world, and asking her iFans to go through the more tiresome process of downloading local versions and transferring them to their phones and tablets.</p>

<p>And what do the fans get out of all this? Not much, it seems. The main Pottermore website, which promises social features and additional content, still hasn't launched, so readers have no particular reason to want to visit the store&mdash;they are simply forced to, after having waited nearly a year for this supposedly innovative and exciting hub for all things Harry Potter. Dedicated users of existing ebook stores face pointless barriers, so rather than opening her market up to people (like me) who have still never read the books but might decide to do so if they crossed the path of their normal ebook-shopping activities, Rowling has limited herself primarily to existing fans who are willing to jump through hoops for an electronic version.</p>

<p>I have no doubt that the Pottermore store will nevertheless sell plenty of ebooks, at least in the beginning, thanks to the massive popularity of Harry Potter and the long-unmet demand for electronic versions. But what, ultimately, was the point of cutting out the middleman here? The only advantage is that Rowling makes a little bit more money from each sale&mdash;but not all the money, because despite being a direct-to-fan model, her publisher apparently still gets a cut, and the partner bookstores will be paid affiliate fees. But even if Rowling's portion of the revenues is significantly higher, it's hard to believe that will offset the lost sales from making the books so hard to obtain. Meanwhile, the fans suffer.</p>

<p>We've praised creators (especially <a href="http://www.techdirt.com/blog/casestudies/articles/20111222/12435717172/louis-ck-over-1-million-sales-just-12-days-drm-free-download.shtml">Louis CK</a>) for going the direct-to-fan route before, but that doesn't mean that creators should do everything themselves and ignore the tools that are available to them. Even with her immense resources, Rowling has created a platform that offers an inferior experience to that of the middlemen she worked to eliminate. When good middlemen are used properly by smart creators, everybody wins&mdash;when they are ignored merely for the sake of independence, without thought given to the actual benefits, everybody loses.</p><br /><br /><a href="http://www.techdirt.com/articles/20120327/07505718258/harry-potter-missing-middlemen-where-pottermore-store-goes-wrong.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120327/07505718258/harry-potter-missing-middlemen-where-pottermore-store-goes-wrong.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120327/07505718258/harry-potter-missing-middlemen-where-pottermore-store-goes-wrong.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>five-points-from-gryffindor</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120327/07505718258</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 28 Sep 2011 10:54:00 PDT</pubDate>
<title>No The Internet Doesn't Do Away With Middlemen -- It Just Changes Their Role</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml</link>
<guid>http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml</guid>
<description><![CDATA[ There's an idea that's been popular for a while that the internet somehow does away with "middlemen."  A perfect example of this is NY Times' Damon Darlin <a href="http://www.nytimes.com/2011/09/25/technology/internet/lunch-catered-by-internet-middlemen.html?smid=tw-nytimestech&#038;seid=auto" target="_blank">acting surprised at a new middleman business</a> delivering food to various companies from various food trucks and chefs:
<blockquote><i>
Hold on, though, wasn&rsquo;t that a job description that the Internet was destroying? There was even a 25-cent word for it: disintermediation. The Web, we were told, was eliminating the need for the layers of brokers, agents, wholesalers and even retailers that separate the consumer from the producer. 
</i></blockquote>
It's time for this argument to go away.  We've been arguing for a while that the internet doesn't <i>kill</i> middlemen, it just <a href="http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml">changes what kind of middlemen you need</a>.  It gets rid of <b>gatekeepers</b>, but replaces them with <b>enablers</b>.  There's still a tremendous role for middlemen operations that enable buyers and sellers to do more.  But there's no role for someone acting as a "gatekeeper" that blocks what buyers and sellers can do.  Of course, gatekeepers hate this, because when they were gatekeepers they were <i>the</i> central player (and could charge monopoly rents).  But enablers are not central.  They're there to help the really important players: the buyers and the sellers.  And there just aren't the same monopoly rents.  Such is life in modern society.  But, let's drop this claim that middlemen are going away, and admit to the reality: it's just the gatekeepers that go away.<br /><br /><a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110927/01281116105/no-internet-doesnt-do-away-with-middlemen-it-just-changes-their-role.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>enablers,-not-gatekeeprs</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110927/01281116105</wfw:commentRss>
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<item>
<pubDate>Mon, 14 Feb 2011 13:58:04 PST</pubDate>
<title>Nice To See How Content Creators Have More Power Over Middlemen</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml</link>
<guid>http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml</guid>
<description><![CDATA[ We've talked a lot about how the role of middlemen is changing quite a bit these days.  In the past, it was about them being gatekeepers.  If you wanted to be a successful musician you had to sign a deal with one of a tiny number of big record labels.  If you wanted to be a filmmaker you had to get a big studio to help you out.  If you wanted to be an author, you had to sign a deal with a big publisher.  And, since those middlemen acted as the only paths to success, they were able to dictate absolutely ridiculous terms.  Just take, for example, the <a href="http://www.techdirt.com/articles/20100712/23482610186.shtml">typical record label contract</a>, which wasn't just a "loan" or an "investment," but them basically buying all of your copyrights <i>and</i> you still have to pay all of the money back from your earnings... but you don't get the copyrights back after you do so.  These were amazingly one-sided deals that totally put the middlemen in the power position.
<br /><br />
What's fascinating (and wonderful) to see today is how the changing marketplace means that the actual content creators are in control.  This doesn't mean the death of middlemen -- not by a long shot.  There's still a <a href="http://www.techdirt.com/articles/20100811/18040910598.shtml">huge role</a> for middlemen to play -- but it's as <i>enablers</i>, not <i>gatekeepers</i>.  In a world with enablers, the content creators are still the ones in control.  The middlemen become <i>supporting</i> players.  This is why I always find it funny when those who support the old system claim that they're the ones "helping" creative types.  But that's clearly not the case.  What they're helping are the gatekeeper middlemen, who have done everything possible to pressure content creators into bad deals <i>because they had no other choice</i>.  These days, thanks to the wider choices enabled by the internet, content creators are able to restack the pyramid and put themselves in control, with middlemen actually helping, rather than capturing all of the value.
<br /><br />
We already wrote about Conan O'Brien's <a href="http://www.techdirt.com/articles/20110210/15233913045/how-nbc-wanted-conan-obrien-dump-his-twitter-account.shtml">embrace of social media</a> in Fortune's article about <a href="http://tech.fortune.cnn.com/2011/02/10/conan-2-0/" target="_blank">Conan 2.0</a>, but there was another part of the article that I wanted to highlight in this post.  And that's the fact that the deal O'Brien signed with TBS is quite different than the traditional TV deal, in that it's not TBS's show that O'Brien appears on, but it's O'Brien's show... with TBS as a distribution partner.  But O'Brien and his company really have all the control -- including over the digital side of things.  Even the video clips from his show don't come from TBS or use a TBS video player.  They're all Team Coco.
<blockquote><i>
O'Brien is in control of all the on-air creative and, just as important, all the digital use of his content. He and his production company Conaco own the show.... It's the opposite of O'Brien's setup at NBC, says Ross, a partner in the company. "Conaco owns the show, and TBS is a participant. At Tonight, NBC owned the show, and we were participants." And ownership makes all the difference for O'Brien and his team.
<br /><br />
Team Coco, not TBS, chooses which clips to use, edits them, and posts them. Preview clips from each night's taping go up an hour before the show's East Coast broadcast; within an hour after the show's West Coast broadcast more than a half-dozen clips from that night's show are posted on its site and Facebook, and linked to via Twitter; and the full show is viewable online the next day at 11 a.m. Eastern time. Last year at The Tonight Show Bleyaert had tried to get pre-show clips posted, but even that seemingly simple idea was difficult to execute because NBC.com ran the show's site, and putting up such clips wasn't part of its normal workflow process. "After the experience that we had at NBC, we wanted to be in control," says O'Brien's agent, Rosen. "We wanted the freedom to exploit our content."
</i></blockquote>
This reminds me of another story from a few years back about a band that announced a label <a href="http://www.techdirt.com/articles/20090802/1549165740.shtml">had signed with them</a>, rather than them signing with a label.  It's happening slowly, but the power positions are shifting and the fact that the gatekeeper role is less and less important, and the enabler role is more and more important, also means that the content creators themselves have more power.  They no longer need to sign soul-crushing, abusively one-sided deals.  Instead, they can sign deals that put them in control, where the middlemen are truly middlemen helping the content creator, rather than <i>owning</i> the content creator.
<br /><br />
We're really not there yet, for most content creators however.  The old types of deals are still being signed.  But I think we're starting to see signs of that changing.  It'll take more time, but the good news is that the content creators are getting more leverage, just as the old middlemen are starting to lose their leverage.  And the end result should be a lot better in the long run.  The middlemen still have their role in the middle, rather than at the top of the pyramid.<br /><br /><a href="http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110210/15534113046/nice-to-see-how-content-creators-have-more-power-over-middlemen.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-not-about-the-middlemen</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110210/15534113046</wfw:commentRss>
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<pubDate>Tue, 1 Feb 2011 15:15:00 PST</pubDate>
<title>The Awkwardness Of Cutting Out The Middleman</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110131/00542712888/awkwardness-cutting-out-middleman.shtml</link>
<guid>http://www.techdirt.com/articles/20110131/00542712888/awkwardness-cutting-out-middleman.shtml</guid>
<description><![CDATA[ We've talked in the past about the idea of musicians doing <a href="http://www.techdirt.com/articles/20090325/2328214261.shtml">"house concerts"</a> or in-home shows (all the way back to <a href="http://www.techdirt.com/articles/20030912/1032238.shtml">2003</a>), highlighting how folks like Jill Sobule successfully offered up the opportunity for fans to pay $5,000 to have her perform at their home.  She had a handful of fans take her up on this offer and said they went great.  When Amanda Palmer released her latest album a few weeks back, she included a similar offer.  $5,000 for an in-home concert during her Australian tour.  Very quickly (and, it appeared, mostly via Twitter), one superfan took up a collection to see if they could raise the $5,000 to have Amanda come play at a barbecue at her place.  And, it worked.  Amanda has now written a really great blog post <a href="http://blog.amandapalmer.net/post/3009694722/amanda-fucking-palmer-for-sale" target="_blank">describing the overall experience</a>, which apparently went amazingly well:
<blockquote><i>
it was a fantastic fucking night. i feel so incredibly lucky to always work on the assumption that my audience will be made up of people that are interesting, people i want to actually talk to.<br />
i borrowed a piano from a girl who came to the gig (and she wound up playing after me, while i signed and chatted to folks), took requests, drank beers, told stories, listened, hugged. kim came along and played some of her songs, and we sang together, and we....felt right at home. i was given some incredible gifts. i feel like collapsing sometimes under all the awesome that comes into my life.
thank you to all you who were there. that was special.
</i></blockquote>
But what's most interesting is that Amanda goes on to discuss how she was worried about doing this -- especially for the first time.  Her main concern was that it would be <i>awkward</i> to show up and play for money -- even though she does that all the time when playing concerts.  But there's something different -- something more intimate -- about playing in someone's home, and the idea that they paid for you to be there is definitely a different feeling.  Amanda narrows it down to a key point: it sometimes feels awkward to deal with money directly.  Money is often a taboo subject, where people like to skirt around actual dollars.  I see this all the time in business meetings, when discussing various deals.  Everyone always like to dance around the key issue -- the money -- for as long as possible, and always seems to hope it's the "other guy" who brings it up or (even better!) some third party steps in and handles the transactional part.
<br /><br />
In fact, that's part of the reason why middlemen exist in so many areas.  Asking for money is <b>difficult</b>, and asking for and handling the money is a function that many people just feel more comfortable handing off to a third party.  Yet, after all of this, when the deal does go through, and you realize that it's a <i>direct connection</i> between two people who are happy about how each came out of the transaction, people begin to realize it shouldn't be awkward at all.  Amanda makes this point as well:
<blockquote><i>
there's something really fucking satisfying about the money not going to everybody inbetween...the promotors, the ticketmasters...and not having those inbetween people involved AT YOUR GIG. there's something that kills the vibe about playing in a venue and knowing that everybody who works there doesn't give a shit about you, your music, or your fans.
</i></blockquote>
Of course, this is the crux of what a market economy is supposed to actually be about: transactions where all parties are better off post transaction, and happier for it.  That may sound crass and businesslike, but if everyone's better off, isn't that a good thing?
<br /><br />
That's not to say that all middlemen should be done away with.  Not at all.  There are plenty of great and important roles for middlemen in specific scenarios.  Middlemen can do all sorts of useful and compelling things to enable content creators to go on and do much more in the world.  But, some middlemen are really just there to make it so that the "awkwardness" of money exchanges goes away, and those middlemen might not be that useful in the long run.  One of the key things we've seen over the past few years is that people <i>love</i> to support artists they like <i>directly</i>.  In fact, they seem <i>more</i> willing to spend if they think or know that the money actually has a half decent chance of ending up in the artist's wallet.  As Amanda notes, more people are starting to realize this, and learn to get over the awkwardness of asking for money, and the awkwardness of removing a middleman who isn't really adding value, but simply obscuring the transaction.<br /><br /><a href="http://www.techdirt.com/articles/20110131/00542712888/awkwardness-cutting-out-middleman.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110131/00542712888/awkwardness-cutting-out-middleman.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110131/00542712888/awkwardness-cutting-out-middleman.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>handling-money</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110131/00542712888</wfw:commentRss>
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<pubDate>Wed, 10 Nov 2010 16:46:00 PST</pubDate>
<title>EU Commissioner Warns Copyright Middlemen To Get With The Times</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101110/07402911792/eu-commissioner-warns-copyright-middlemen-to-get-with-the-times.shtml</link>
<guid>http://www.techdirt.com/articles/20101110/07402911792/eu-commissioner-warns-copyright-middlemen-to-get-with-the-times.shtml</guid>
<description><![CDATA[ <a href="http://torrentfreak.com/european-commissioner-lambasts-copyright-middlemen-101110/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+Torrentfreak+%28Torrentfreak%29" target="_blank">TorrentFreak</a> points us to a recent <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/619&#038;format=HTML&#038;aged=0&#038;language=EN&#038;guiLanguage=en" target="_blank">speech given by Neelie Kroes, European Commission Vice-President for the Digital Agenda</a>, in which she gives a warning to "copyright middlemen," that they need to adapt to the changing times:
<blockquote><i>
Borders are now crossed more easily than ever before in history. It is a great opportunity for artists and creators of all kinds, as art has no limits but those of our minds. Art enriches itself by eliminating artificial barriers between people such as borders between countries.
<br /><br />
Just as artists have always travelled, to join sponsors, avoid wars or learn from masters far from home, now digital technology helps them to cross borders and break down barriers. Their work can be available to all. In a sense, the internet is the realisation of the Renaissance dream of Giovanni Pico della Mirandola: all knowledge in one place.
<br /><br />
Yet, it does not mean there are no more obstacles to sharing cultural and artistic works on the net. All revolutions reveal, in a new and less favourable light, the privileges of the gatekeepers of the "Ancien Regime". It is no different in the case of the internet revolution, which is <b>unveiling the unsustainable position of certain content gatekeepers and intermediaries</b>. No historically entrenched position guarantees the survival of any cultural intermediary. Like it or not, content gatekeepers risk being sidelined if they do not adapt to the needs of both creators and consumers of cultural goods.
</i></blockquote>
Of course, the real issue is that middlemen who are used to being gatekeepers need to get away from the gatekeeper mindset, and realize that it's time to be <i>enablers</i> instead of gatekeepers -- but that's difficult to do.
<br /><br />
There's also the admission that copyright "should not be an end in itself," which it too often appears to be for some in the industry:
<blockquote><i>
Take for instance copyright. For 200 years, it has proved a powerful way to remunerate our artists and to build our creative industries. <b>But copyright is not an end in itself</b>. Copyright exists to ensure that artists will continue to create. Yet we see more and more often that it is not respected. In some sectors, the levels of piracy demand that we ask ourselves what are we doing wrong. We must ensure that copyright serves as a building block, not a stumbling block.
<br /><br />
Look at the situation of those trying to digitise cultural works. Europeana, the online portal of libraries, museums and archives in Europe, is one key example. What a digital wonder this is: a single access point for cultural treasures that would otherwise be difficult to access, hidden or even forgotten.
<br /><br />
Will this 12 million-strong collection of books, pictures, maps, music pieces and videos <b>stall because copyright gets in the way</b>? I hope not.
</i></blockquote>
Of course, what Kroes is really pitching is the ongoing campaign to harmonize European copyright laws into a single copyright law across the EU, that will also include a single licensing setup.  This effort has been under way for a while, and hasn't gone all that well, in part, because the various countries that make up the EU know that there are vast differences in each market, and they're not convinced a single copyright regime actually does make sense.  So, while the language Kroes uses sounds good, it's probably more about complaints concerning regional differences, rather than a recognition that overall copyright law is broken.<br /><br /><a href="http://www.techdirt.com/articles/20101110/07402911792/eu-commissioner-warns-copyright-middlemen-to-get-with-the-times.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101110/07402911792/eu-commissioner-warns-copyright-middlemen-to-get-with-the-times.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101110/07402911792/eu-commissioner-warns-copyright-middlemen-to-get-with-the-times.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>about-time</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101110/07402911792</wfw:commentRss>
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<pubDate>Fri, 16 Jul 2010 01:18:00 PDT</pubDate>
<title>Copyright Serves Middlemen, Not Content Creators</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100714/11055510215.shtml</link>
<guid>http://www.techdirt.com/articles/20100714/11055510215.shtml</guid>
<description><![CDATA[ The original copyright law, the Statute of Anne, went into effect 300 years ago.  And its purpose was not to protect content creators at all, but to protect the middlemen -- the printers.  Little has changed since then, but you wouldn't know it to hear those middlemen talking about how much they're speaking up for the interests of content creators.  As our recent posts on both <a href="http://www.techdirt.com/articles/20100712/23482610186.shtml">RIAA accounting</a> and <a href="http://www.techdirt.com/articles/20100708/02510310122.shtml">Hollywood accounting</a> have shown, these "industries," that claim to represent content creators' interests, work pretty damn hard to screw content creators out of receiving money.
<br /><br />
The good news, however, is that more and more people are realizing this.  Copyright is not about protecting creators' rights, but giving middlemen more power, and a recent panel discussion involving music industry insiders and lawyers suggests that <a href="http://www.ip-watch.org/weblog/2010/07/12/panel-copyright-needed-in-music-but-should-benefit-musicians/" target="_blank">at least some are coming to terms with this</a>:
<blockquote><i>
The "biggest flaw in music is not copyright, it's business practice," said attorney and lecturer Ben Challis. Business practices that shift rights from the author or song writer to companies are the reason that artists do not get paid, he added. A fair regime would protect artists as well as the corporate side, he added.
<br /><br />
Copyright has "shown itself for what it truly is," said Kienda Hoji, an entertainment lawyer and senior lecturer at the University of Westminster. It is a system that benefits those who want to make money, not the creators who deserve to, he said.
</i></blockquote>
Of course, that's been true for... well... about 300 years now.  Isn't it about time something was done about it?<br /><br /><a href="http://www.techdirt.com/articles/20100714/11055510215.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100714/11055510215.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100714/11055510215.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>as-it's-always-been</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100714/11055510215</wfw:commentRss>
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<pubDate>Thu, 31 Dec 2009 17:11:00 PST</pubDate>
<title>The Problem Isn't Middlemen, It's Monopolies</title>
<dc:creator>Nina Paley</dc:creator>
<link>http://www.techdirt.com/articles/20091208/0259297245.shtml</link>
<guid>http://www.techdirt.com/articles/20091208/0259297245.shtml</guid>
<description><![CDATA[ I love middlemen.  Yes I do! Most indie filmmakers I talk to complain about distributors and "middlemen," but they're missing the real problem. Middlemen -- publishers, distributors, resellers -- can do excellent work. The problem is not middlemen; it's monopolies.<br />
<br />
So many middlemen insist on monopolies, we've forgotten we don't need to grant them. They say that without a monopoly (aka "exclusive rights") they have no incentive to promote and distribute. Actually a monopoly gives a middleman <i>no</i> incentive, because no one is competing with them. Take away the monopoly, and the middleman has to compete with other potential middlemen (including the artist). <i>Then</i> they have an incentive to work. Rather than monopoly, they succeed on the basis of expertise (theatrical distributors already know how to track, ship, and manage prints), innovation (finding better ways to meet customers' existing desires and identifying new ones), and quality.<br />
<br />
I'm very happy with the middlemen I work with. <a href="http://filmkaravan.com/" target="_blank">FilmKaravan</a>, who distributes <a href="http://www.sitasingstheblues.com/" target="_blank"><i>Sita Sings the Blues</i></a> on DVD, promoted and placed DVDs in <a href="http://www.amazon.com/Sita-Sings-Blues-Annette-Hanshaw/dp/B002G50002" target="_blank">outlets</a> and markets I was too lazy to reach. (They out-competed me, which is great!) <a href="http://www.gkids.tv/index2.cfm" target="_blank">GKids</a>, who distributes the film theatrically East of the Mississippi, manages the prints professionally, finds great new <a href="http://www.ifccenter.com/" target="_blank">venues</a> for it, and promotes it cleverly without overspending. These middlemen do their jobs very well, and I'm grateful for the services and value they add to the film. They have my non-exclusive <a href="http://questioncopyright.org/creator_endorsed" target="_blank">Endorsement</a>.<br />
<br />
I'm only unhappy with one middleman, an overseas distributor who uses their monopoly to block access to the film rather than facilitate it. For example, a professional conference held by their country's national television company, and attended by important players in the film industry there, sought a one-time conference screening of Sita, but the distributor refused to lend the local print.  Lending it would have helped the film tremendously, but the distributor was focused on immediate money instead of on the long-term good of the film.  Because I had foolishly granted this distributor an "exclusive endorsement" in their territory, there was no one else in a position to lend a print. (What distributor would take up a film knowing that the filmmakers' imprimatur had already been granted to a competitor?)<br />
<br />
My endorsement wasn't a mistake.  I want that distributor to make money, and lots of it!  But endorsing <i>exclusively</i> was a mistake: although not as bad as copyright, it's still a kind of monopoly, and monopolies invite abuse.  That is their nature.  I now know that to get good work from a middleman, I can't grant them a monopoly.  They need to feel that if they let an opportunity slip by, another middleman may jump at it.  Business competition improves business performance; some say it's an essential incentive.<br />
<br />
Middlemen will only have monopolies if artists keep granting them. They're not going to give them up on their own. <b>It falls on us artists to simply refuse to grant these monopolies in the first place</b>. A copyleft license sends a clear, simple, and non-negotiable message to middlemen that they need to innovate and compete to profit from the work. Only we artists can supply the incentives they need to do their jobs well; and we can only do that by refusing monopolies.<br />
<br />
A middleman without a monopoly is a great help to art and artists. Rather than abusing monopolies, they provide valuable services. The better they are at providing services, the more successful they become. Competition keeps middlemen on their toes, and eliminates the lazy and incompetent. Monopoly does the opposite.<br />
<br />
In sum, <b>the problem isn't middlemen, it's monopolies</b>. Yay for middlemen! I love middlemen!<br /><br /><a href="http://www.techdirt.com/articles/20091208/0259297245.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091208/0259297245.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091208/0259297245.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ditch-the-monopolies</slash:department>
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<pubDate>Wed, 9 Apr 2008 16:53:27 PDT</pubDate>
<title>The Web Is Improving Consumer Software By Cutting Out Middlemen</title>
<dc:creator>Timothy Lee</dc:creator>
<link>http://www.techdirt.com/articles/20080405/101012764.shtml</link>
<guid>http://www.techdirt.com/articles/20080405/101012764.shtml</guid>
<description><![CDATA[ <p>David Pogue quotes an <a href="http://pogue.blogs.nytimes.com/2008/04/04/why-there-arent-more-flips/">interesting reader email</a> about why high-tech consumer products are so often bloated and poorly designed. It points out that when large companies design a product, they tend to be overly focused on adding lots of complex features in order to put "more check marks in more boxes" on comparison charts and impress reviewers. That raises the price of the product and can often confuse novice users. But in the old days when software was sold in a box at Best Buy, it was hard to avoid this fate because the overhead of producing, distributing, and marketing the software required charging a high price and sucking up to reviewers. The web has eliminated a lot of overhead and allowed an entrepreneur to put his product directly in the hands of users without going through a lot of middlemen. That shifts the marketplace in favor of small, lightweight, easy-to-use software. 
<br /><br />
Software that would never have been judged serious enough to put in a box and sell at Best Buy can now carve out a niche in the market by appealing directly to customers. And that's a good thing because comparison charts are often a lousy way to judge software. For example, the original Google search engine would have stacked up poorly in comparison charts against larger rivals like Yahoo! that were rapidly transforming themselves into "portals." But Google was a lot better at the one feature that really mattered: search quality. They <a href="http://www.techdirt.com/articles/20071120/123845.shtml">had trouble</a> convincing the titans of the web to buy their search technology, but luckily they could just put it on the web and let the customer try it. As more and more software migrates to the web, it's likely to result in more responsive and higher-quality software.</p><br /><br /><a href="http://www.techdirt.com/articles/20080405/101012764.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080405/101012764.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080405/101012764.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>keep-it-simple-stupid</slash:department>
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