For hundreds of years, publishers across every industry ??? book publishers, record labels, film studios, videogame publishers ??? solved problems for artists in four major ways:
- Funding. The cost of creating a new work, paying the artist’s expenses during the creation process, often with an advance.
- Production. Design, manufacturing, and printing of the finished product.
- Marketing. Going on tour, making a video, promotion in various media outlets.
- Distribution. Getting the product into people’s hands.
And how does this play out now?
Excellent overview of how “new” media is different.
From Business Insider???s The Future of Digital
I was just talking yesterday about two French ISPs having given up on building their own linear content packages. One might argue that they did this in part because they see linear TV on a downward slope. The news last night about the Disney / Netflix deal will probably comfort them in that line of reasoning???
Earlier this year it looked like Netflix was facing an increasingly uphill battle to maintain its rich content at such a low price to consumers, and some of the large majors seemed to be poised to bet on cable as opposed to Netflix. But last night Disney and Netflix announced a multi-year agreement for Netflix to distribute Disney movies in the earliest Pay TV slot on their US platform. Of course, we have no idea what the financial aspects of the deal are, and whether in the long term such deals will drive Netflix???s costs (and therefore their prices) up. Still, it certainly puts a halt to rumours that Netflix would not be able to negociate access to such contents.
And as the slide above shows, 16% of US TV sets were used at prime time for non-linear video viewing 4 years ago, it???s now 33%. Maybe Disney sees the writing on the wall as well.
Linear TV is not the future of the Internet.
Beyond short-term earnings, however, the lending library is just the latest innovation to raise big questions about the whole publishing ecosystem. In an environment where books are increasingly digital, what’s the most effective way to create value for readers, for authors and for intermediaries? And — the biggest question — which intermediaries will survive the transition?