An, er, friend of mine heard an interview on Fresh Air with Scottish director Armando Iannucci about his new film In the Loop (IMDB). He’d never heard of Iannucci, or the movie, or the TV show upon which the movie is based. The audio clips from the movie were so great he then went to Youtube to see if he could find more clips. He could. The clips video looked even funnier than the audio.

The movie — it appears — “comes out” on August 14. In the old days, that meant my friend had two choices:
1. Wait two weeks to watch the movie in a theatre
2. Wait six months (?) to rent the movie and watch it at home

It always annoyed my friend that he had to wait to watch movies he wanted to see, because movie studios liked to release movies at different times in different cities; and then wait months after that to release the DVD for rental.

The studios did (and do) this not because they surveyed their customers, and found they preferred having to wait to watch movies they wanted to see in the way they wanted to see them. The studios did (and do) this for various business reasons, that have proved, over time, an effective way to increase revenues on a movie.

Times Are Changing

But these are not the old days, they are new days. And a few things have happened. My friend watches 95% of the movies he watches on his computer; he rents DVDs using zip.ca (Canada’s Netflix); and occasionally when he wants to watch a certain movie right now, he looks for it online.

The movie studios so far have decided that he should not watch movies online when he wants to watch them.

Which in the old days, meant he just had to wait, despite being more excited about this movie than any other movie he’d heard about in past year or so.

A Parable of the Present

But it turns out that other people (not studios) can get their hands on copies of movies as soon as they are available — often before they are released in theatre — and those people make them available online. This is especially true for movies that lots of people really really want to see, right now.

So my friend now has a third choice:
3. Watch the movie when & where he wants.

It turns out that my friend much prefers option 3. It also turns out that movie studios don’t want to give my friend option 3 – which makes my friend shrug a little when he hears them talking about piracy.

Not because he wants things for free, but because it seems to him that “digital” means studios and moviegoers no longer need be constrained by the two choices of the old days. Option 3 is easy and cheap, and that’s the option he wants.

He often says: If you, as providers of content, give me what I want, when I want it, at a reasonable price, I’ll be happy to pay for it. But if you don’t want to give me what I want, when I want it, I’ll be compelled – when I really want something – to find other ways to get it.

Lessons

1. If there is demand, there will be supply.
2. In the digital world, media is infinitely copiable & distributable at rougly zero cost
3. Media companies have long built their business around a restricted supply
4. If demand exceeds restricted supply in the digital world, someone — not necessarily the owner of the good — will meet that demand by making & distributing infinite copies at zero cost
5. Trying to stop # 4 is like trying to stop water going down hill
6. If restricting supply is no longer a viable business, then something else must be
7. When supply is unlimited, other factors drive the choices people make
8. Those drivers include: ease, quality, curation, attention, service, connection
9. Media companies – including book publishers – should stop thinking about business based on phony restricted supply
10. Media companies – including book publishers – should start thinking about how to build business around the actual drivers that will bring their customers to them (see #9 above), instead of sending them to the pirates

Epilogue

It was one of the best movies my friend has seen in a long while; and he has urged me to urge you to watch it. You’ll love it (he says).

This episode, an intimate trio performs for your pleasure: C.C. Chapman, Mitch Joel and me.

LISTEN HERE: Media Hacks: Episode 6.

Or: Mp3 download.

Tearing up the airwaves in this episode: C.C. Chapman, Julien Smith, Chris Penn, Mitch Joel and me.

LISTEN HERE: Media Hacks: Episode 6.

Or: Mp3 download.

What was striking: the execs from the music business, including Michael Nash, Warner’s SVP Digital Strategy and Business Development, finally cottoned on that the real challenge of the music business is not to fight a lost battle against P2P, but rather to find ways to make it easier for listeners to listen to their music. Check this quote:

“These types of social media are highly competitive with illegal file-sharing,” said Michael Nash, Warner’s executive vice president of digital strategy and business development.

Sites such as Spotify allow users to access the music for free rather than searching for it on BitTorrent and downloading it illegally, Mulligan said. Spotify and the Comes With Music mobile-phone music service by Nokia Oyj, the world’s biggest handset maker, “are the two strongest tools that people have to drive a genuine alternative to piracy,” he said. [more...]

That is, the music business has finally understood that suing listeners who want to listen to their music isn’t a very sensible long-term business strategy. The better strategy is to figure out how to provide more music to those people.

P2P isn’t going away, and the music business’ success will depend on doing a better job of serving their customers than Pirate Bay does.

LISTEN HERE: Media Hacks: Episode 5

Maybe the problem is not so much online news sources killing off business for print newspapers; maybe the problem is the continued existence of print newspapers is stifling innovation in the online news space.

Since so much (local) advertising dollars are still going (being wasted?) on dying print news outlets, there isn’t enough left over to properly fund a leaner, profitable online alternative.

If print newspapers are gone, then local advertisers are going to start wondering how to get people to come to their stores; radio/TV, OK, but if the eyeballs are online, and there are no more papers distracting the advertisers, then …well there is an untapped market there for the online news sites to figure out. And since online can do a better job (in theory) of matching ads/marketing to reader preference, thru cookies, browsing habits, tracking sales (Facebook Beacon notwithstanding), then the death of the traditional news business might be exactly what it takes to kick the online news business, and online content, to real innovation, and real profitability.

I’m back from TOC and still mulling over the problems, and maybe some solutions to problems in the publishing business. There are lots, but a fundamental problem seems to be that most publishing houses have never had much to do with their readers. Their clients, traditionally, have been book stores. And outsourcing relationships with the people who are your reason for existence is a bad idea.

If you look at the talk around the perilous state of the publishing business, and the challenges of ebooks and DRM and digital and the web, it ends up being this old sad story of: “How do we maintain our financial viability when fewer people are reading?” And not, “What do readers want and how can we best provide it?” [more...]

The Washington Post has taken my advice, and just launched the Political Browser, which points to important stories around the web.

More of this to come, no doubt.

[via Publishing2.0]

• Sympatico is owned by BCE, which also owns a big stake in CTV Globe Media, representing: Canada’s biggest private TV network (CTV), Canada’s biggest national newspaper (Globe and Mail), and 35 radio stations across the country.
• Shaw – mostly a tech company.
• Telus – mostly a tech company.
• Rogers owns magazines (including Maclean’s and Canadian Business), TV stations including CityTV and RogersTV.
• Videotron is owned by Quebecor, which owns scores of newspapers across the country (including Journal de Montreal and the Toronto Sun) numerous magazines in Quebec, the TVA television network, Archambault record stores, Videotron video rental stores, and a number of book publishers.
• Cogeco – mostly a tech company.

So between them, UPDATE: the owners of Bell Sympatico, Rogers and Videotron, probably own three quarters of Canada’s non-CBC news media; the balance owned by CanwestGlobal (which owns Global Television, the National Post, and, of course, Dose Magazine).

All in all not very healthy. The Canadian mania for, and regulatory approval of, consolidation not just in the media business, but in merging media and technology, means that our ISPs are our news providers. So any discussion of Net Neutrality and Copyright will be filtered through the lens of Big Content Providers.

Which, I guess, just means that we have to keep getting the word out.