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Lower barriers to entry aren't a bad thing though - I'm perfectly happy having a lot of competition in the content distribution or content creation markets. It
by ryanbrunner 9y ago
Lower barriers to entry aren't a bad thing though - I'm perfectly happy having a lot of competition in the content distribution or content creation markets. It drives innovation and ultimately results in a healthier market and more consumer choice.
I think the possible danger that compulsory licensing would prevent is that companies can use their market power in one area to starve out competition in another. For example, once Disney launches their streaming service, they could easily capture a large portion of the market due to their dominance in content creation
- rayiner 9y agoIf the worry is that Disney will use market dominance in one market to capture another (ala Microsoft and browsers), the solution is antitrust action against Disney, not forcing compulsory licensing on all content creators whether they have market power or not.
- ryanbrunner 9y agoI guess my point is, if this is a natural consequence of vertical integration between content creation and content distribution, a more general approach could make sense (you could make the same argument to a lesser degree about HBO or even Netflix).
- rayiner 9y agoBut what you're positing is a consequence only where vertical integration is combined with horizontal dominance. If I don't have market dominance in content, there is little risk that I'll be able to translate that into dominance of the streaming market. At the same time, there are huge downsides. You take all the negotiating leverage away from the content creators and give it to the distribution middlemen.