The Disintermediation of Content

Are content brokers - publishers, distributors, and record companies - a thing of the past?

In one word: disintermediation.

The gradual removal of layers of content brokering and intermediation - mainly in manufacturing marketing - is the continuation of a long term trend. Consider music for instance. Streaming audio on the internet ("soft radio"), or downloadable MP3 files may render the CD obsolete - but they were preceded by radio music broadcasts. But the novelty is that the Internet provides a venue for the marketing of niche products and reduces the barriers to entry previously imposed by the need to invest in costly "branding" campaigns and manufacturing and distribution activities.

This trend is also likely to restore the balance between artists and the commercial exploiters of their products. The very definition of "artist" will expand to encompass all creative people. One will seek to distinguish oneself, to "brand" oneself and to auction one's services, ideas, products, designs, experience, physique, or biography, etc. directly to end-users and consumers. This is a return to pre-industrial times when artisans ruled the economic scene. Work stability will suffer and work mobility will increase in a landscape of shifting allegiances, head hunting, remote collaboration, and similar labour market trends.

But distributors, publishers, and record companies are not going to vanish. They are going to metamorphose. This is because they fulfil a few functions and provide a few services whose importance is only enhanced by the "free for all" Internet culture.

Content intermediaries grade content and separate the qualitative from the ephemeral and the atrocious. The deluge of self-published and vanity published e-books, music tracks and art works has generated few masterpieces and a lot of trash. The absence of judicious filtering has unjustly given a bad name to whole segments of the industry (e.g., small, or web-based publishers). Consumers - inundated, disappointed and exhausted - will pay a premium for content rating services. Though driven by crass commercial considerations, most publishers and record companies do apply certain quality standards routinely and thus are positioned to provide these rating services reliably.

Content brokers are relationship managers. Consider distributors: they provide instant access to centralized, continuously updated, "addressbooks" of clients (stores, consumers, media, etc.). This reduces the time to market and increases efficiency. It alters revenue models very substantially. Content creators can thus concentrate on what they do best: content creation, and reduce their overhead by outsourcing the functions of distribution and relationships management. The existence of central "relationship ledgers" yields synergies which can be applied to all the clients of the distributor. The distributor provides a single address that content re-sellers converge on and feed off. Distributors, publishers and record companies also provide logistical support: warehousing, consolidated sales reporting and transaction auditing, and a single, periodic payment.

Yet, having said all that, content intermediaries still over-charge their clients (the content creators) for their services. This is especially true in an age of just-in-time inventory and digital distribution. Network effects mean that content brokers have to invest much less in marketing, branding and advertising once a product's first mover advantage is established. Economic laws of increasing, rather than diminishing, returns mean that every additional unit sold yields a HIGHER profit - rather than a declining one. The pie is getting bigger.

Hence, the meteoric increase in royalties publishers pay authors from sales of the electronic versions of their work (anywhere from Random House's 35% to 50% paid by smaller publishers). As this tectonic shift reverberates through the whole distribution chain, retail outlets are beginning to transact directly with content creators. The borders between the types of intermediaries are blurred. Barnes and Noble (the American bookstores chain) has, in effect, become a publisher.

Many publishers have virtual storefronts. Many authors sell directly to their readers, acting as publishers. The introduction of "book ATMs" - POD (Print On Demand) machines, which will print every conceivable title in minutes, on the spot, in "book kiosks" - will give rise to a host of new intermediaries. Intermediation is not gone. It is here to stay because it is sorely needed. But it is in a state of flux. Old maxims break down. New modes of operation emerge. Functions are amalgamated, outsourced, dispensed with, or created from scratch. It is an exciting scene, full with opportunities.

About The Author

Sam Vaknin is the author of "Malignant Self Love - Narcissism Revisited" and "After the Rain - How the West Lost the East". He is a columnist in "Central Europe Review", United Press International (UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com. Until recently, he served as the Economic Advisor to the Government of Macedonia.

His web site: http://samvak.tripod.com

---

Write an Ezine? But I Dont Know HOW!

If you've been promoting your business on the internet you've... Read More

Subscriber Incentives: Are They Effective?

Peter Boulder of Pepper and Rodgers Group tells a story... Read More

Need Ezine Content - Think Holidays

Publishing an ezine certainly has its benefits and rewards, but... Read More

Making Money Online With Web Publishing

Who doesn't want to make money online? Internet is here... Read More

Top 3 Steps to Success Building the Relationships

Marketing is a broad business subject that encompasses a range... Read More

22 Ways to Grow Your Subscriber List

1. Don't bury your subscriber form, place it on your... Read More

Finding the GOLD with Ezines and Google!

HiHow'd you go with your product search?Here's another way to... Read More

10 Winning Ezine Publishing Tips

1. Share your personality with your subscribers. Your subscribers are... Read More

E-zine Promotion: 10 Smart Reasons To Charge A Fee For Your E-zine

You publish an e-zine, you may consider to start charging... Read More

Writing Effective Newsletters

It's obvious but true that your newsletter can only be... Read More

How Many Articles Can An Author Write As An Expert In A Field?

More and more smart business people are finding the value... Read More

Email Newsletter Software

Should I create my newsletter in a word processor or... Read More

How To Use Viral Marketing To Grow Your Opt In Email List

If you have read my article called "What is Viral... Read More

Newsletter Names - Creative Ideas for Newsletter Titles

Your newsletter name has a big effect on your readership,... Read More

10 Benefits Of Submitting Articles To Ezines

1. You'll brand your web site, business and yourself by... Read More

The Five Deadly Fears of E-Newsletter Publishing

1. Fear Of Having Nothing To SayAs a small business... Read More

Ezines VS. Trade Journals

As many people know Industry Trade Journals in America have... Read More

Your E-zine Promotion Checklist

While there are seemingly endless ways to promote your e-zine... Read More

How to Build Your List ? 7 Powerful Strategies

If you have been an internet marketer, or had any... Read More

Three Breathing Techniques For Any Ezine Article

I subscribed myself to many ezines. I'd love to read... Read More

Word Newsletter Templates - How to Easily Create Them

You can use Word newsletter templates for both Word and... Read More

Your E-zine 13 - A Formatting Checklist

While sending out a text e-zine may seem like a... Read More

Write Your Weekly Ezine in 5-Minutes! (or better yet, dont write it at all)

How to write your ezine in 5 minutes by legally... Read More

Search Engines Can Be The Online Writers Best Friend

It's an exciting time for online writers, with a wide... Read More

8 Killer Mistakes For Ezine Failure You Must Avoid

It is true that sometimes in life there is a... Read More

Location, Location, Location

The first thing you should consider in advertising is the... Read More

Email Newsletters: Privacy and Unsubscribing

As you likely know from personal experience, the value of... Read More

Producing Ezines for Growing Your Business

What an ezine is ? An ezine is an electronic... Read More

Writing, Publishing, Self Publishing, Website Promotion, Blogging, Internet Marketing

Are You Ready For The Publishing Revolution?Writing has traditionally been... Read More

Secrets To Successful Publishing

Have you ever wondered what would it take to compete... Read More

Does Your Business Need a Newsletter?

Have you ever thought about it?If you don't have a... Read More

How To Write Powerful Newsletters, Offline And Online

The theory of writing for newsletters is very similar to... Read More

6 Ways to Catch More Opt-ins Than Ever Before

Remember that when you have new visitors at your website,... Read More