How Many Times Will Content Industries Claim The Sky Is Falling Before People Stop Believing Them?

from the crying-wolf dept

Michael Scott points us to a fantastic draft paper by respected intellectual property lawyer/scholar Mark Lemley recapping the long history of content industries declaring that the sky is falling every time a new technology hits the scene. From photographs (going to destroy painting) to musical recordings (going to destroy live music) to radio (going to destroy recorded music) to cable TV (going to destroy regular TV) to the photocopier (going to destroy books) to the VCR (going to destroy the movie industry) to audio cassettes (home taping is killing music) to the MP3 player (ditto) to file sharing (ditto) to the DVR (killing TV) and onwards -- the content industries seem to have a problem in immediately declaring that the sky is falling... when it turns out it's never actually falling at all. The paper is a quick read and quite enjoyable. Now, I should admit that I had no idea that the paper gives me an all-too-kind and surprising name check at the end, which I didn't know about until I reached that part of the paper, but I had actually already started writing up this post, so hopefully no one thinks that influenced my decision to write about it.

There isn't necessarily anything new in the paper. Many of you probably know all of these stories, and they've been discussed at length over the years in posts and comments here on Techdirt. However, it's nice to put a bunch of them together in a single document just to highlight the same pattern over and over again:
  1. New technology
  2. Legacy industry freaks out saying the world is ending
  3. Industry flocks to DC & the courts to demand fixing
  4. Turns out that the new technology actually increases the market
Given how many times this has happened, isn't it about time that politicians, judges and the press stopped just believing the industry every time they make this claim? Shouldn't the burden of proof really be on these industries to prove that they're actually being destroyed?

And, yes, many of these technologies did require changes to business models -- which may have meant that some legacy players went out of business. But failing companies and failing industries are two totally different things. It's important to remember that. As Lemley notes in the paper:
The content industry, it seems, has a Chicken Little problem.

It may, in fact, be the case that the sky is falling. But, if you claim that the sky is falling whenever a new technology threatens an existing business model, the rest of the world can be forgiven for not believing you when you claim that this time around it's going to be different than all of the other times. Now, let's be clear, each one of these technologies changed the business model of the industry. They caused certain revenue streams to decline. But they also opened up new ones.

Filed Under: business models, chicken little, content, innovation, mark lemley, predictions, technology

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    cc (profile), 12 Aug 2010 @ 10:49am



    The internet is way more disruptive than anything they've had before, because it means they've lost control of the distribution channel.

    While traditionally the distributors would load a bunch of films/tapes/DVDs on a truck and deliver them to the cinema/store and charge any price they wanted, there is now a new player they simply can't compete with in both terms of cost and efficiency.

    There is nothing that can be done to save them, really, but the big studio companies own the bigger distributors, and they are putting up a fight -- a fight that may NOT in fact be about saving the distributors!

    They clearly don't own the internet's infrastructure, but they sure seem bent on controlling the internet through new legislation that passes some of the profits to themselves! Isn't that what all these Hadopi, Ipred, Digital Economy Act, Australian Firewall etc "projects" are really about?

    I'm personally sick and tired of listening to them moan. Not only are they in the "luxury goods" business, meaning what they sell is hardly a necessity, they've been rendered obsolete by new technology, they've even cried "wolf" way too many times, and they've proven themselves to be greedy, selfish and unethical. Can't they just die already?

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