Saturday, January 19, 2008

Money in a Digital World

One of the few ways to get stinking rich is to do something once, that can be replicated and sold millions of times while you sit on your ass (or lie in your grave). This is how the Beatles, Elvis and Britney make money. Problem is that is what happened in a world that wasn’t digital, now making copies of high quality is really easy. And is it wrong? Well, its illegal in most places, but there is a difference between something being illegal and something being wrong.

I think it is wrong to cheat on someone, but it is not illegal. I don’t think it is wrong to play online poker, but some argue that strictly speaking it is illegal.

Personally, I am not convinced that making copies is wrong. It is also not the end of the world for creative people, in fact I think it is quite the opposite. Musicians can now get their music out for next to nothing. They don’t need fancy record labels and expensive distribution. They can `publish’ their own music on their own websites, and let people download it for free. If it is good, more people will download it.

Maybe you charge R0.01 per track but you have to enter your contact details and a valid credit card? The valid credit card simply to make sure the contact details are correct. Maybe you don’t need a credit card, maybe you only send it to cell phones and then charge nothing. If the music is good, lots of people will download it, and tell their friends, and look forward to your next release. So, how do you make any money?

The one thing that can’t be digitally replicated… live performance.

The same way the West End and Broadway will still be going years from now.

Authors will need to do the same… public appearances, blogs, discussion groups. Real people.

So will people be able to make money after they are dead, no… but that makes sense to me.

2 comments:

Stuart said...

I was very surprised to learn how much of manchest united's revenue came from ticket sales. about a third. equal to tv rights and mechandise.

Anonymous said...

I also liked a way Broadway dealt with ticket scalpers...

They started offering some of the seats for $400. This was something like the amount ticket scalpers get, but no one ever charged that for the actual tickets... Those tickets will obviously only be bought if the others are already gone.

I just think the whole technology thing may actually mean people start being paid for what they actually add personally, since anything that can be done digitally will be replicated easily.

Giving away your intellectual property for free, but charging for interaction.

Sports/Plays/Story Tellers/Teachers/Advisers.... I think those are the people who will be demanded.