News and commentary about the intersection of information technology, politics, and policy presented by the members of Digital Politics, a course at Hamilton College.
Technology has helped facilitate the democratization of music by selling it via the internet. Costs for individual pieces were driven down because the cost of CD's was eliminated from the consumer price. Now, by cutting the middle man out, bands won't have fixed costs and will be able to earn the same or higher profits, for a lower revenue (consumer cost). One problem is that these bands are not riding on the traditional economic assumption that consumers will pay the lowest possible price if quantity is constant but supply is unlimited, but believe that most people will contribute money of their own accord...but Americans love free things. It is a dangerous move because it may mean the end of music as a career...
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Technology has helped facilitate the democratization of music by selling it via the internet. Costs for individual pieces were driven down because the cost of CD's was eliminated from the consumer price. Now, by cutting the middle man out, bands won't have fixed costs and will be able to earn the same or higher profits, for a lower revenue (consumer cost).
One problem is that these bands are not riding on the traditional economic assumption that consumers will pay the lowest possible price if quantity is constant but supply is unlimited, but believe that most people will contribute money of their own accord...but Americans love free things. It is a dangerous move because it may mean the end of music as a career...
Sanjana,
These are very interesting issues. I think you will enjoy the Benkler and Lessig books.
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