There’s always something to howl about.

Day of the Long Tail: How broadcasting lost its chokepoint

Continuing, briefly with the idea of chokepoints and the economics of abundance:

Broadcasting — radio and television — offers us a perfect example of how much bigger the economics of abundance is than mere data processing.

Broadcast outlets, at their beginning, were both natural and man-made chokepoints: There were a limited number of available frequencies, and access to them was regulated by fiat of law. Cost-based chokepoints affected the other major media of the era — newspapers and magazines. This resulted in very lucrative markets for the owners of mass media outlets — and in media products that tended to be at least as dissatisfying to consumers as they were appealing.

But then three things happened:

  1. Printing got a lot more efficient, creating the era of narrowcasting in publications — not one generic bike-riding article a year in Look magazine, but a dozen specialized monthlies just for different flavors of serious bike racers — with a dozen more for mountain biking, and a dozen more for bicycle fitness training.
  2. As a consequence of better scientific research in electro-magnetics, electronics, signal-processing and information theory, the radio spectrum itself became much more abundantly divisible — creating still newer kinds of narrow-casting, right down to cell phones and private-network walkie-talkies.
  3. Finally, the internet itself resulted in a massive explosion of available bandwidth in mix-and-match wired and wireless networks.

What’s the result? One of the richest businesses in the entire history of chokepoints is being disintermediated into oblivion. Sic semper tyrannosauris.

Emphasizing that, I cannot get enough of this movie:


Technorati Tags: , , , ,