The Progress & Freedom Foundation today published a new paper titled “From ‘Dinosaurs’ to Digital: An Examination of Ongoing Innovations in Copyright Industries.” As PFF’s press release notes, the paper “itemizes the variety of ways traditional content industries are experimenting with digital distribution models. In an effort to compete with user-generated content and online piracy, content industries are making content available online through subscription and ad-supported models. Providers are also experimenting with ‘bundled’ offerings, tying digital product with both physical product and digital ‘extras,’ such as video streaming or social networking features.”

This is a message that can’t be said enough, namely that copyright industries are developing new business models, that they are affordable and consumer-friendly and provide artists and creators new avenues to reach an audience legally. This is an argument I have been making for years, and it’s nice to see a paper that provides some concrete examples.

I’m also pleased because I know the author, Andrea Siwek. The Copyright Alliance had the good fortune of having Andrea as a research assistant this summer, and her intelligence was surpassed only by her good nature and professionalism.

There are a lot of business models cited in the paper, and Ms. Siwek breaks them down into different styles of approach. I don’t want to give too much away because I want you to read the paper. But it’s clear certain patterns are emerging in how to reach consumers online with legal business practices.

As I’ve said before, we see new businesses launch every day. it’s unclear how many of them will survive. But on a macro level, the success rate isn’t the most important thing. Some will find both an audience and a way to generate a profit, and those businesses will allow everyone to benefit, including artists and creators. Still new businesses will emerge, and many of those will fail as well. But I think I speak for most consumers when I say I don’t want forty choices in creative works distributors. Malcolm Gladwell pointed out that most of us actually prefer a handful of choices because that makes it easier to make a sound decision.

We’ll likely see a different handful of choices in different creative industries, but that’s the way it was in the distribution of physical goods. Again, as the digital marketplace matures, it will form itself around the same consumer preferences we have always had for creative works.

Congratulations to Ms. Siwek for a very helpful snapshot of the digital marketplace at present. No doubt it will look different a year from now, and I hope Ms. Siwek or some other promising researcher will craft a sequel.

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This entry was posted on Friday, December 19th, 2008 at 9:06 am by Patrick Ross and is filed under copyright opponents, creators, drm, economy, fair use, internet, licensing, market forces, piracy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.