Clever stiff this. Kent is on the money when he points to the payment for access to information rising rapidly but the people collecting it aint the creators.
I was struck by this today when reading of HBO’s 5-Year £150 Million deal with BSkyB. When will an access provider see fit to buy guaranteed rights to quality content online? And when they do will it herald the end of the open web as we have known it?
Instead, we’re entering a realm of high fixed costs that have to be spread over a longer timeframe, which must be recouped while new charges are accumulating from maintenance and enhancement activities. And as editorial and management costs migrate from a hybrid print/online budget (in many organizations, costs are still presumptively print), the fixed costs for digital will only increase.
Then, publishers, authors, and retailers will have to absorb the reality of a digital-dominant model. My guess is that pricing will increase dramatically across the board as the fixed costs, talent costs, and full-on business expenses have to be met by digital business.