Abundance in Supply & Diversification of Demand By Marc Gauvin Copyright Madrid 2004.
-
Upload
karla-tribett -
Category
Documents
-
view
244 -
download
6
Transcript of Abundance in Supply & Diversification of Demand By Marc Gauvin Copyright Madrid 2004.
Abundance in Supply &
Diversification of Demand
By Marc Gauvin Copyright Madrid 2004
Supply/demand in the Digital Space
The supply unit is the content hour Available content hours are
increasing rapidly But per capita hours for
consumption are constant Ratio content hours/ hours to
consume is increasing i.e. Abundance is going up!
Users
More Fragmentation
Markets
More Decisions
More Options
Niches
Content Abundance/Diversity Pump
Abundance
Markets tend to fragment into smaller niches
Niche markets multiply Any niche size no matter how
small is supported Result is both increased
quantity and increased diversity of content
End users must be active no longer passive consumers
The sum of niche markets becomes greater than any single market
Capacity for content hours is increasing but per capita access time is still constant
Strategic Advantage ?
In analogue media
there is quality of service but resource control
(production, storage and distribution) dominates
In digital media
Media is cheap and abundant Distribution cost is trivial Client duplicates i.e creates
the copy on the client’s device Everyone can produce
Diversity of niches and demand produces:
Decreased predictability Decreased period of predictability Decreased control from the production
side Some predictability from identifying
demand but no way to create demand!
Advertising value decreases as a function of decreased predictability.
Conventional economic precepts get very stressed in deed!
Ubiquitous Value? In the conventional analogue
economy Value = scarcity Hence it is not ubiquitous Availability of conventional money is
correspondingly made scarce But Money is the supreme value of
the analogue economy because to a few, it makes value feel ubiquitous!
But in the digital space value is ubiquitous without money Like a light, when it is on it is
everywhere It multiplies itself But correspondingly, analogue
money per digital value becomes even scarcer!
So where do prices in analogue money go?
Down the rabbit hole!
Two Economic Spaces at Odds With Each Other The analogue space
Limited points of supply Centralized distribution Control through supply Barter is cumbersome
E.g. Time shifting exchanges of analogue objects i.e. perishables, generally is not viable
So, conventional money plays central role
The digital space
Unlimited points of supply so no control there.
Decentralized distribution no control here either
Barter is optimal Time shifting exchanges is trivial
But analogue money still is the only game in town!
What Can DRM Do?
Control the end user Or
Manage rights
DRM DRM provides the ability to control the
use of content and the Work contained in it Techniques include: Rights expression languages Key management Encryption Watermarking Pattern Recognition (Music Notation Codec?) Etc.
DRM So DRM permits the full range of
control from Author through to end user
Each player in the chain having control over how his contribution is used and applied
Any provider of technology in the chain is a player
From end to end
DRM So we are all in this together What is the big picture? What do we need to understand to
know where each of us are going? So we can know where we can go
together No one is going anywhere alone!
DRM to Control the End User?
Why control the end user anyway?
To protect big markets? But then prices race down the
rabbit hole! E.g.. RealNetworks offers iPod
services and half price! Big markets are dangerous places
and heighten the need for security
Hackers love to break big business models
In reality talent is everywhere we can always entertain and educate ourselves for free and legally thanks to DRM!
And that is Value In big insecure markets Users naturally
hold on to their hard earned scarce cash! So with the rabbit hole and all this fun
were having it looks like hard times for big business models
But DRM to Manage Rights? Great idea for better defining niche
markets Many less significant markets kills
the thrill for hackers Security needs are naturally relaxed Diversity is safe many eggs and
many baskets easy to define with DRM
Talent shines everywhere
Diversity makes every digital search an adventure
Digital object for digital object trading makes sense
When it is ‘one to all’ and ‘all to one’, no matter how big “one” is ‘all to one’ is always BIGGER!
And time shifting exchanges is trivial. No need for conventional money in the
digital space unless you want to buy real tomatoes!
A B
Digital Space
Analogue and Digital Value Exchange
how do we go from here
Analogue Space
A B
Digital Space
To Here
Analogue Space
Analogue Money?
We have already been down the rabbit hole!
So what can we do? We can trade digital: “all to one” is
always bigger than “one” no matter how big “one” is.
But can we time shift the analogue side of digital analogue trading?
Yes we can! Every piece of analogue money
used to be a limited edition of a work of art on a support, with the option of extending the edition of that work as needed to facilitate time shifting the trade of other goods.
Every piece of digital content is a an edition of a work!
DRM makes the edition limited and extendable!
So Banks safeguard limited editions of works
So too, every DRM is a Bank of limited edition of works!
Now the Big question
DO WE WANT JUST ONE DRM FOR ALL DIGITAL WORKS?
OR ONE STANDARD SPECIFICATION FOR MANY INTEROPERABLE DRMs
Diversity vs. Monolithic Control
Either a new age is enabled where each node (individual) becomes the cause of the whole network.
Like a knitted sweater where every knit represents the health of the whole fabric
Concentration in maintaining each knit becoming the mainstay of the new paradigm.
OR
THE END