One day I was down the shore, sometime in the mid 90’s, I was at an ice cream parlor and outside they had a hand-made sign with somewhat off spec drawings of Mickey Mouse and Bart Simpson.
I said to my dad, “Are they allowed to do that?”
“No, not really,” he said.
“Why doesn’t someone stop them?”
“Because it’s not worth it to them.”
He explained how Disney or Fox would need to spend lots of money to try and first look for people infringing on their copyrights and then spend more resources to have the ice cream shop take the sign down and extract royalties from them for any profit gained by using their characters, which wouldn’t be very much. Someone put the characters on a sign to draw a little attention to themselves.
Later on I thought about what if I created my own characters and one day walking into a shop to see something similar. First I thought about calling the cops, then imagined myself standing next to the cops as they made the register girl take down the sign. It looked kind of dumb. Then I thought about making some kind of snide comment about how “that’s my character” and trying to make the owner feel bad. That looked even stupider. I eventually realized my dad was right, it wouldn’t be worth it.
The story’s stuck with me through the years. I’m not saying this now because of the SOPA uprising but because this was my first exposure to the concept of resource management and the need to find balance between the ideal (no one uses Mickey but Disney) and reality (who’s it hurting, really).
When the SOPA fury did boil up, I started to think about the big picture and why this time it seems different. The online equivalent of the Mickey Mouse sign today would be someone using a song in the back of a silly YouTube video they splice together. What’s this really about? I won’t get into how absurd the bill or its methodology really is. I’m more interested in why it’s being pushed in the first place.
Didn’t we go through this with the music industry already? Between the iPod and iTunes Apple created a platform (since copied by Google and Amazon) that was better than the pirates’ and my friends and I stopped downloading music illegally and paid for it. People wanted the content in this new format and when someone provided a means to do that they bought into it. Why wouldn’t that just happen again?
I think two things are happening this time that makes it different.
1. The concept of “owning” media is dying. Spotify, Pandora, Netflix are the image of things to come. You don’t need to own a song anymore to listen to it. You don’t need to own a movie. The song lives in the cloud and you buy the rights to access it. This is a strange new business model that’s scaring people. DVD and music sales are down, and I think part of the reason is that people don’t want to buy and own a piece of media anymore. Just look at the backlash from studios when Netflix exposed how out of step they were with what their audience wanted.
2. This content isn’t worth what the producers think it is anymore. An HD movie costs 20 bucks retail, 14 bucks digitally on iTunes. It’s not worth that. Video games and social networking are all viable alternatives, and if you look at them on a money spent per hour of use ratio, these things are a steal. A 2 hour movie at 20 bucks comes out to 10 dollars an hour. A 50 dollar game with 60 hours of content (any Zelda game) comes to 83 cents an hour.
Are the pirates really that big a factor? I haven’t seen any stats that say so, but I don’t know anyone who pirates. I guess we technically just watched Curb Your Enthusiasm Season 8 illegally online, but like the iTunes example I’d gladly pay for stand-alone access to HBO’s online service, HBO Go. Why won’t they let me without also subscribing to the TV service? If those sites went dark, I just wouldn’t have watched Curb. HBO wouldn’t have gotten anything from me anyway.
I think this boils down to media companies are beginning to realize their business models are dying and they don’t have a solution. The publishing industry has been going through this for a while. Newspapers took a pretty nasty, well publicized hit. Some are adapting to the new digital reality and will survive, some of them won’t and new things like Flipboard will replace them.
This last week proved the SOPA folks won’t win, I never thought they really would. New business models always take the old ones to the woodshed kicking and screaming and this time won’t be any different.