Wednesday, January 28, 2009

Get the net model to work by increasing the cost of publishing?

Changing the cost structure of online publishing would allow the larger organizations to, essentially, raise the cost of publishing back to its former level. If it suddenly costs hundreds of thousands of dollars to publish again, then news brands have their monopoly back, and the ad dollars start rolling in.

That's the view of Jason Preston who argues why the future of news brands hinges on net neutrality.

Sounds complicated but not really.At the moment it costs nothing to publish on the net,Ok nothing is a bit too simplistic but once you have paid the fixed costs then the marginal cost of publishing is nil save a person's time

But Jason argues

If internet service providers are allowed to give preferential treatment to the data coming from customers who pay—essentially making “access to people” a biddable commodity—then the level playing field disappears instantly.

This would allow the larger publisher an advantage as they would benefit from economies of scale

and the result

And if the cost of publishing goes back up, then media companies get to have their monopoly back on widely-distributed media, and then, the advertising revenue comes flooding back in, as other doors are closed again.



Luis said...

This would end with net neutrality. I think it may be the right step for media, and also for those users who would just want a basic internet for free (free bandwith, I mean).



Nigel Barlow said...

To an extent yes Luis but it then procludes the net from being open to all.
Nevertheless something has to be done to put the model back on track