Tag Archives: internet

Amazon creates new DRM-free music site – the beginning of a new economic model?

Are physical copies of music on the way out? There are a lot of things in this world being changed by the internet. News is more immediate, more available and more impartial with the vast amount of sites and blogs reporting in a host of different ways. People sell their old stuff on ebay, or advertise rooms on craigslist. More and more the internet is bringing the service closer to the customer, cutting a lot of the middlemen out of the equation. After Amazon.com released its new DRM-free music download site to rival Apple Itunes, we could start seeing the beginning of a new purely-digital economy for some people.

The music industry is an interesting example of a business model rapidly changed by the internet’s influence. Just ten years ago, music was far more rigid – managers and scouts discovered talent, put an album out and promoted it. With Myspace pages, music blogs, internet radio and the 21st century digitalized version of word of mouth, it’s becoming easier for people to get their material out there themselves. Now, with music download sites becoming more and more accessible it’s easier for artists to skip the whole major label, CD store approach. Selling mp3s has far less overheads than red-brick stores that need to pay for manufacturing and transport of the CDs, the salaries of the managers, shop assistants and factory workers and all the many levels of bureaucracy that all take a cut of the profit, leaving the original artist with barely a few percent of the money spent on their work.

In the future, even in the near future, we could see artists that produce, promote and sell their work entirely online, making a greater percentage of the profits and passing that down to the consumer. If an artist gets 80% of the money for a song instead of 5%, they can afford to sell the mp3 for 30c instead of 99c and still make more money. The internet may give us the strange future of a place where we pay less for our products and end up giving the artist more. The advantages to such a lifestyle are numerous, especially in a society trying to cut down on its emissions.

[via guardian technology, image by Lord Cuauhtli]

The future of cost-effective medicine?


An enterprising doctor in New York is offering a distinctive new form of treatment specializing in “young adults aged 18 to 40 without health insurance”. As well as making house calls to work or home, Jay Parkinson, MD will meet you online – via MSN, AIM, webcam or email – to discuss problems. Using the internet to search for the best price treatments to recommend also helps drive down the price of medicine. Are local surgeries and GPs under threat from the new world wide web docs? I can’t help thinking about the worlds of Snow Crash or Neuromancer when I think of doctors meeting you online to discuss your wounds.

[via Boing Boing, image from the doc’s website]

Anatomy of a bank run, offline and online

You may or may not have heard about the ‘bank run’ of panicking customers withdrawing their savings from beleaguered UK lending institution Northern Rock over the last few days. While the phenomenon of snowballing panic causing the initial problem to worsen is an old one, it has moved to populate the online world in parallel with the offline – so many customers are trying to access Northern Rock’s website at once that their servers can’t cope and return 404-page-not-found errors, adding to the impression of an institution in trouble. [Image from Getty, copied from BBC article]

As a side note, the Financial Times is predicting that this is the start of a rough period for finance on both sides of the pond – welcome to Crunch Week.

[tags]finance, banking, economics, internet[/tags]

Economics2.0 – bandwidth as currency?

Ad-hoc wireless networkThe planned launch in January 2008 of Tribler, a variation on the BitTorrent protocol, is being hailed by the software’s creators as a way of sharing the burden of peer-to-peer networks more fairly, by treating bandwidth as a commodity to be traded on a global market. Which sounds great to me, especially as it’s open source … but isn’t it somewhat inevitable that someone will make a hacked version with the altruism overridden?

But leeching is hardly a new phenomenon, and by and large the web’s development as a resource for the average user can be largely ascribed to altruistic behavior by participants – Victor Keegan at The Guardian thinks the gift economy of the web actually promotes overall economic welfare. I’m inclined to agree, but I can think of a few counter-examples – how about you? [Image by Peter Kaminski]

Online but off the grid – Japan’s internet café homeless

Websurfers in an internet cafeIn an example of interstitial existence that sounds like it leaped straight from the pages of a William Gibson novel, the Japanese government has announced that there are over 5,000 “internet café refugees” eking out a living at the bottom of the social strata, taking what temporary work they can and dossing down in 24-hour internet cafés in the absence of a home of their own. Even in the shadow of our ubiquitous technologies, the same social issues that have existed for centuries are following us into the future … [Image by Kai Hendry]