The battle for the internet begins

Following on from CDB's last post, here is an example of how the pace and scale of change, is causing exisitng businesses to try to protect their business models.

In an article entitled Internet companies reject plans for tariff to offset music piracy

Technology companies have reacted angrily to the idea of a new tariff aimed at recouping money lost to illegal downloads.

The proposals for a change in copyright law and licensing - put forward this week by independent music labels and artists' organisations - have caused consternation among internet and mobile phone firms. They are unhappy about what they describe as an extra tax on their services.

Brian Aherne, a spokesman for the Internet Service Providers Association (ISPA) called the plans "ill-conceived" and said the industry would resist attempts to bring such proposals into law.

But it goes beyond conventional notions of the internet, to really all digital platforms

The mobile industry also claimed it had not been consulted over the proposals, which were presented last week to the government's review into intellectual property, headed by former Financial Times editor Andrew Gowers.

But music industry officials say the so-called Value Recognition Right would see ISPs and other groups charged to make up for the actions of illegal downloaders. The charges could even stretch to hardware, such as Bluetooth devices, that can be used to transfer music files.

read further comment here and here

Does this amount to a levy on all digital business?

And think of it this way when the electric lightbulb was invented the gas companies did all they could to resist the introduction of this new technology.

In a report by The Media Centre this historical event is touched upon as a parallel example of what happens when we go through dramatic introductions of new technology that affect other companies business models.

The situation recalls the gaslight industry at the latter part of the 19th Century. The integration of electricity into infrastructure, commerce and daily life disrupted the business, not to mention the future, of gaslight manufacturers. The industry – major power brokers in urban America at the tiime – responded first by ridiculing electrical technology and its brilliant ut contoversial inventor,, the ever-entreprenurial Thomas Edison. Special interests then rallied around the values and traditions of a traditional non-mechanical society, triggering resistence, even sabotage, to a variety of electricity-enabled innovations.

But the gaslight industry coould not ignore bright lights that inspired imagination, new machines that harnessed electrical power, or the stunning illuminating of culture and life.

The gasligfht industry was forced to respond. It turned to technology, but applied it to sustain, rather than change its business. The carbon-fiber wick was invented to extend the small fire that puts light in the gas light. The coleman lantern survives today as the legacy of what is now a niche business serving small, dedicated campers in the wilderness

So the point is that rather than trying to sustain the status quo, can one embrace what are perhaps core human drivers to share, connect communicate and commune.

And its like the old argument about copying vinyl onto tape. have a listen to Lawrence Lessig explaining why culture wants to be free.

Though piracy is piracy. But I think there is a carrot in this as well as a big stick.

Further reading

When push comes to pull. The new economy & culture of networking technology

Victor Keegan writing last year in Dissing the discmen is of this opinion

It is enough to make a sceptic believe in life after death. For the past few years the music industry has been predicting the death of the singles market because of the global scourge of illegal downloading.

And what has happened? The latest figures show that 524,000 singles were sold last week in the UK, an impressive 7% increase on a year ago and no less that 44% up on sales earlier in the year, when the sirens of doom were at their loudest.

Oh, I've forgotten a small point. These figures only refer to sales of what is known in the trade as "physical" singles. If (legal) downloads are included, sales have soared by a staggering 88% in the last year to 977,000 last week.

As a Guardian leader pointed out yesterday, far from killing the industry, downloads have given it a new lease of life. Meanwhile what has the industry been doing? Instead of opening the champagne corks they have stepped up their campaign to rid the industry of the virus they still claim is killing it.

However this year the Guardian reporetd Digital download sales fail to offset CD slide

Global music sales fell 3% last year to $20.8bn (£12bn) at wholesale level as the growth of digital distribution failed to offset the continued decline in compact discs.

Digital music sales rose to $1.1bn from $400m, according to the International Federation of the Phonographic Industry. Britain is the third largest digital music market, behind the United States and Japan, with sales of $69m last year.

CD sales worldwide slipped 6% to a little over $17bn. The biggest selling album in 2005 was Coldplay's third album X&Y, followed by Mariah Carey's Emancipation of Mimi and 50 Cent.

So where lies the truth? The fact of the matter there are today greater threats to business models as we explain in our book - there are new ways to create value, to develop new business models and revenue streams. Our consumption habits have changed and that is a fundamental issue for the industry.

Just go into any HMV store at the moment and see how many CD's they are selling for £2.99 as they struggle with a dramatic change in peoples consumption habits or read what the BBC have to say

An A-Z guide to downloading music legally

Special report on music+digital

Comments

[Eating For Energy Review]

What's up friends, nice article and pleasant urging commented here, I am genuinely enjoying by these.

[Burn The Fat Feed The Muscle Review]

If you are going for best contents like me, just pay a visit this website all the time as it provides quality contents, thanks

[SVQHMWRVUAPVWYQE]

Hi there, You have done a great job. I will certainly digg it and in my view recommend to my friends. I am confident they'll be benefited from this site.

[Motobug Tails19950.Png Home Mens Shorts White Pants & Trousers]

you're truly a excellent webmaster. The web site loading speed is incredible. It kind of feels that you are doing any distinctive trick. Moreover, The contents are masterpiece. you've performed a excellent process in this subject!