Network Effect

How the Internet Is Wreaking Havoc on Media Companies

@rrtzmd - I agree with you in theory, but not in practice (and I definitely don't think most of us will survive unscathed if it is left unregulated - we will survive but not unscathed). The difference between this evolution and prior ones is that this evolution is creating consolidation in all industries, and all geographies, all at the same time. Very few business models are not impacted by the Internet at this point. So, consolidation is occuring at a pace and breadth that has never been seen before - on a global macroeconomic level. The short term impact was growth of jobs and unique revenue streams which is what occurred this past decade. However, we have crossed the inflection point at which the number of jobs and unique revenue streams that it is creating are less than the ones that it is destroying and that trend will continue to get worse unless regulation comes into play. Think about why the government doesn't let two big companies merge - because it would be bad for the consumer in the long run because there would be too much consolidation and power. This is what the Internet is doing in most industries and geographies - it is creating massive consolidation. You need competition in a capitalist economy. Consolidation kills competition. And that's why I think the Internet will be regulated so that this trend doesn't continue and things won't end badly for the consumer in the long run.

How the Internet Is Wreaking Havoc on Media Companies

The Internet is wreaking havoc on just about everything. Jobs are being lost to productivity increases caused by the Internet. This doesn't end well for a lot of companies if you play it out long enough. Left unbridled, the Internet will cut out all middle men, and it will create perfect information for the consumer. Both are very bad for many businesses, and therefore bad for the consumer in the long run because consumers need to be employed. The Internet needed to be "protected" this past decade. The next decade it will be regulated and taxed so that many businesses can make a profit, not just a few, and so that people start going into malls again (for example) and therefore there is a reason to have malls with paying jobs, real estate to be rented, construction to be done ... etc etc etc. I hate to say it because I'm an Internet guy, but the Internet has increased our productivity too much and it is now hurting our economy rather than helping it because it is killing and consolidating more revenue streams and jobs than it is creating new ones.