Distribution games part II
In a previous post I had analysed the troubled logistics chain between the distributors of media content & media companies producing the content on the other edge of the spectrum. These problems constitute a harsh reality in the digital world as well. The difference is that media distributors online are evolving in a - catch me if you can - pace that media companies find difficult to adapt or follow. This means altering the latter's business models all the time. The intellectual property of the media companies is the question & the dilemma here. How do online distributors handle media content? In what extent do distributors have the right to exploit media content as they see fit without asking legal permission from the producers, everytime a new distribution model appears?
These questions have existed before in the physical markets but the Internet is the new ''boxing'' arena where the aforementioned players fight hard or prepare for new rounds of boxing for their own interests. Take Amazon's users for example. Since April 2011 they have the option to upload the unlimited music they purchase or download to Amazon's cloud services, having unlimited access to their favorite music whenever, wherever. This worries the big music firms as they feel somehow threatened by the Cloud which lets music fans stream music, without knowing if they will have a revenue cut for sure. Amazon doesn't have the right to stream music they argue. Thus Amazon as a digital distributor, is trying to establish people's rights to unlimited streaming of music without the consent of the media firms. A raging battle is on the rise. I can't really predict the winner but your bets are welcome...
These questions have existed before in the physical markets but the Internet is the new ''boxing'' arena where the aforementioned players fight hard or prepare for new rounds of boxing for their own interests. Take Amazon's users for example. Since April 2011 they have the option to upload the unlimited music they purchase or download to Amazon's cloud services, having unlimited access to their favorite music whenever, wherever. This worries the big music firms as they feel somehow threatened by the Cloud which lets music fans stream music, without knowing if they will have a revenue cut for sure. Amazon doesn't have the right to stream music they argue. Thus Amazon as a digital distributor, is trying to establish people's rights to unlimited streaming of music without the consent of the media firms. A raging battle is on the rise. I can't really predict the winner but your bets are welcome...
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