Want to know what is happening to the media?

An interesting piece from Seamus McCauley on his virtual economics blog which suggests that the traditional media should keep a close eye on the porn industry.

Not for the obvious reasons,I might add,but that it is the embryo of many media innovations.

Seamus points out that the industry is in decline as it has seen a 30% decline in its sales of Dvd's as a result of amateur or user generated material.

As he says

"the implications for media in general? Nothing we
didn't know already, just a bit more data to support that knowledge. People are
willing to do for free something that was once a $14 billion industry.
"