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Most physical object businesses has a multi-tier process that, greatly simplified, can be described as: (1) design -> (2) produce -> (3) distribute This simpl
by snprbob86 15y ago
Most physical object businesses has a multi-tier process that, greatly simplified, can be described as:
(1) design -> (2) produce -> (3) distribute
This simplified traditional model can be directly applied to movies, games, books, etc.
For example:
(1) guy writes book -> (2) publisher runs the printing press -> (3) dude runs book store
Each of these steps can be greatly sub-divided. For example, someone needs to drive the truck full of books to the book store!
Furthermore, the line between each of these steps can be very blurry. An author could, for example, print his own book at home, if he were so inclined.
The big monkey wrench comes into things when you consider the most important missing element: MONEY! Where does it come from?
In the days of yore, if you wanted to produce a film, you'd have to go find backers, like you would for a startup business. Those backers could be friends, family, fools, professional investors, pre-order sales, etc.
More interestingly, one type of backer could be the production/distribution suppliers. They often have greater diversification, so they are more stable in the long term. As they grow more and more stable, they grow more and more rich. With their riches, they can go re-invest more and more of the supply and distribution chain. Once they own more and more of the supply and distribution chain, they can invest more and more in the design end of the process.
Now here's where things get rotton:
It is extremely difficult to profit from a movie these days which are not funded by the major studios. They simply won't run it in the theaters that they have exclusivity deals with! ie. most of them!
You're fucked.
This is true of a scary number of media empires! In addition to movies, think about TV, music, Broadway, books (especially text books). I'm sure I'm missing many.
It even is true of software! It may no longer true for boxed software at your local Compu R' Us store, but it still is for video games. You're simply not gonna make as much money if your game doesn't show up on the shelves at Walmart.
So while capitalism works pretty well in general, it's got a fatal flaw: it tends to generate monopolies. And monopolies are dangerous. If not presently malevolent, monopolies are like time bombs waiting to go off when new leadership steps in. I doubt the movie studios set out with the goal of controlling all media and public opinion. It just so happens that being good at making money makes you good at accumulating power. And power corrupts.
So now back to the question you asked: What is The Pirate Bay's stance?
Well.... I'd imagine that they view themselves as liberators from the tyranny of the production companies. If those companies went poof and disappeared tomorrow, films wouldn't disappear. I mean, just look at youtube.com/freddiew -- there are talented people out there who are figuring out how to fund things like they're doing with their VGHS film.
Surely, destroying the production companies would cause people to loose jobs and lots of great films to die on the planning desk. But people will overcome. The industry will find new ways of funding itself and the middleman will become less powerful. Sure, YouTube is huge, but that won't stop you from clicking a Vimeo link. The internet simply makes it too hard to get disgustingly rich from being a publishing or distribution platform. And if you do get disgustingly rich, you simply can't lock every movie theater into an exclusivity deal: anyone could run his own movie theater! And many other movie theaters are just a few keystrokes away! There are new ones every day.
- OstiaAntica 15y agoCapitalism doesn't create permanent monopolies, government does. Capitalism tends to destroy monopolies. Just ask Kodak or AT&T or any other monopoly disrupted by innovative technology. Anyway, Notch is making tens of millions of dollars on Minecraft, a video game sold directly to consumers.
- andrewcamel 15y agoYeah, that's a great point about Notch. I think it goes along well with my point that theater-type production and distribution systems are reserved for the big guys. The smaller guys like Notch have their own channels and it has worked out very well for the most successful of them.
- res0nat0r 15y agoIt is great that Mincraft is as successful as it is. But trying to say that gaming would exist as is without the backing of big companies as is is a joke. Minecraft caters to a niche market. I'm pretty sure Notch couldn't have cranked out Skyrim on his own, and WoW wouldn't have been developed by a small group of people as a hobby project on their own time. Large and complex games and systems and the like take lots of money to produce a product people will want to play, and without big backing these type of games wouldn't exist.
- snprbob86 15y agoNotch, among others, is the exception that proves the rule.
- deleted 15y ago[deleted]
- andrewcamel 15y agoThanks so much for the lengthy response - really cleared a lot of things up, but I had a few things to ask about: 1) So the main issue that we all have with these big production companies is that they make it difficult for small guys to get in on the movie game? But isn't that what things like Youtube and Vimeo are for? Distribution systems for the little guy? I don't really think it's practical to want to put a significant amount independent developers into theaters. The reason the production companies are really oligopolists (few in number, but relatively great in power) in the industry is that is the best way to actually make the industry work. For example, it's not a very good idea to have 100 different power companies where you live because it is much more efficient and therefore better for society to have only one company. Similarly, it really isn't a great idea to have hundreds if not thousands of movies playing across the country at the same time - it brings up huge issues with coordination, advertising, movie quality, etc. These big production firms don't have the problems that you would have with having hundreds of smaller independent firms. The smaller guys should be going for the distribution channels made for the smaller guys because that's how those channels were designed. The whole construction of the network of theaters around the world wasn't designed to have thousands of movies playing at the same time - it was designed to have a few big movies playing at the same time. And the only way you're going to get a few big movies is if you have only a few firms that are able to make these big movies. 2) Just as a quick point on economics, capitalism doesn't create monopolies. It's the part of our economy that isn't capitalistic that creates monopolies. We obviously don't live in a purely capitalistic society as a whole - it's more monopolistically competitive and in some parts, oligopolistic. It is oligopolistic in those parts where it is most efficient to do so (like in the big name movie production and distribution industry).