The music, and now the movie, industry is struggling with the ramifications of what happens to "content" on the Internet. Actually the debates also rage around print media, as well. What is happening is that content (or creative works, including this blog) is becoming free (as in beer, I guess). Two weeks ago Alvin Toffler talked about the knowledge economy as the economics of abundance. This is a huge change. Economics has always been about the economics of scarcity. Esther Dyson saw this coming 13 years ago in this Wired article. Rex Hammock, media entrepreneur and blogger, referred to this article among others that gave him an "a-ha" moment. Newspaper columnist and blogger Mathew Wingram also referred to the article and to a column by Paul Krugman, liberal economist and New York Times columnist, that discusses the economics of abundance.
The point is that knowledge is not necessarily a scarce commodity. In fact, the more there is, the better off the society. People once thought that they could control every facet of their intellectual property. Not so in the age of abundance. Content is free. You make money by how you use your knowledge. Bands make money not on CDs (only the record companies make money there), but on live performances and merchandise. I make no money from this blog, which you receive for free. If I were serious about it, I'd make money either by selling advertising on it or through speeches and consulting fees I'd earn because someone thinks I'd have something more to share. This is the new economy.
I don't believe magazines are going away, but the business model continues to change. Now, a higher proportion of income must come from online advertising and conferences (or live events, as they are sometimes called). Magazines used to start trade shows. Now it's conferences. I'm lobbying for "un-conferences" or conferences where the emphasis on formal presentations with PowerPoint slides is reduced and interaction of the attendees is increased. I'd be interested in your feedback on that idea.
As far as automation goes, we're still in the second wave--manufacturing. That will always be here, too. But what about your own individual intellectual property? As companies seem ever more reluctant to hire full time staffs of knowledgeable people, what's the income model for automation/manufacturing knowledge workers? This thought probably should be pondered for both the Shells and GMs of the world as well as for the Honeywells and Emersons of the world.
8:15:04 AM 
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