2 ms·
I don't think this fully explains the phenomenon, but I do think there are a couple of factors you're overlooking here: 1. Control over the "distribution chann
by rodw 4y ago
I don't think this fully explains the phenomenon, but I do think there are a couple of factors you're overlooking here:
1. Control over the "distribution channel" is a major factor at least part of the time. The fields which are most notorious for low pay (e.g., books, music, photography) are the ones where the producers of the content are disconnected from the customers and instead sell via distributor. At least some of these middlemen are reaping the rewards of the low marginal cost (e.g. Spotify?), but I'm not sure if it applies to all of them (e.g., book publishers?). More to the point, software developers tend to have more direct control over the distribution channel (notably SaaS) and when they don't the distributor tends to takes a hefty chunk of the revenue (e.g. mobile app stores today, big-box retailers 20-30 years ago).
2. The "make it once, sell it infinitely" model doesn't really apply to newspapers (and maybe some of the other categories) in quite the same way. Yes, the marginal cost per view is essentially 0, so I can "sell" today's paper an infinite number of times. But the value of and interest in that content rapidly depreciates to 0 as soon as it becomes yesterday's news. The newspaper model isn't "write once, sell forever". You need to continue to "feed the beast". It's the ongoing production cost to continuously generate new content that dominates.
3. There may also be a correlation with "content" versus "services". Whether due to distribution mechanics or popular perception, it seems like application providers (e.g., Adobe, Microsoft) are able to enforce a pay-as-you-go subscription model but "pure" content providers are often trapped in a (lower-margin) advertising model because "information wants to be free" (or more to the point, is easily plagiarized by competitors or pirated by consumers). Digital or not, most of the "low pay" examples you cite fall into the content rather than service category.