People Care About Markets, Not Industries

No one cares about the music industry.  But they really care about music, musicians - and the music marketplace.  They care about songs, singers, bands, DJs, gigs, clubs, forums, recommendations, discussion boards, MySpace, specialist dealers and obscure collectors.  And now the web lets people organise these things into the marketplace they've always wanted.  Which looks something like - free music supported by live gigs, merchandise and good quality recordings.  The music business (RIP) lost sight of the industry vs marketplace distinction along time ago.  After years of trying to protect their cathedrals, they ended up outsourcing the headache to Steve Jobs.  Who made a mint by ignoring the industrialists and rebuilding a lighter-whiter-brighter marketplace.  Now TV is trying to avoid the same fate of being stuck behind stone walls, throwing boiling oil at its customers.  TV's smart kids know no one gives a hoot about their industry.  But they do care about great entertainment, amazing actors, sensitive scriptwriting, powerful plots, celebrity glitz and inspiring drama.  In fact, they care so much that given the opportunity they want to get involved.  Just look at the success of the L-Word fanisode and LG15 (now EQAL), creators of the hits Lonely Girl and Kate Modern.  Both are examples of smart operators turning their backs on the industry, looking out into the marketplace (aka the bazaar) and reacting to what they observe.  But it's not all small studios hustling webisode craziness.  The Big Daddy of social networks - MySpace - has its own TV channel and just listen to its VP, Jason Kirk describe their approach: "We’re trying to decide what makes sense for our community. The video is often the catalyst, but it’s about how does it play into the community."  Or Amanda Goodfried, LG15 producer: 'The show is more than just a video series, it’s a universe, a full experience where viewers can become directly involved in the character’s lives.'  No industrial sentiment there.

Comments

[Deirdre Molloy]

Well said Mr C :) I'd add that, rather than being disintermediated, the "industry" is having to become more porous to survive (after the thrashing it's taken since it missed the boat and didn't buy / collaborate with Napster soon enough).

But old skool forums and communities are still thriving too, where aficionados are happily immersed in their passion and helping themselves, like this one for fans of the electronica persuasion: http://www.djhistory.com/forum/

If something is good, activity keeps thriving away on the interwebs, outside the industry perimeter fence.

[James Cherkoff]

Thanks Deirdre, the post-Napster story of the music industry really is the defining business case of our times. Would others agree?

[Simon]

It is definitely the defining business case. Ownership and distribution become analogous in the online sphere. Hence the TV companies looking at Project Kangaroo which in the short-term may cannibalise their own websites but, in the long-term, aims to keep the content "in-house" rather than "outsourcing it", as you succinctly put it. Whether p2p can be kept at bay is something I am sceptical of, but will watch with fascination

[James Cherkoff]

Thanks Simon. The relationship between content providers such as Kangaroo and the wider P2P universe will be interesting. P2P is associated with illegal file sharing but it's just the plumbing of the web being put to good use. After all the BBC iPlayer is a P2P service.