We believe the future is fully digital, and the future is now. And yet experimenting with new digital models not based on advertising at a scale that matter have not been successful. Entrenched players spend hundreds of millions to maintain their regulatory moats and leverage their concentrated distribution power. In Canada, just three publishing groups own 54% of newspapers. If allowed to merge, Universal and EMI would control 51 of 2011’s Billboard Hot 100 songs. Six Hollywood studios account for well over 3/4 of the market. AT&T and Verizon alone have over 440,000 employees. Predictably, the FCC remains the poster child of regulatory capture.
The un-digital camp is far from relinquishing their power. Models that can replace them aren’t here. Advertising online has been corruptive of user privacy and editorial integrity. I’m afraid it’ll be a miracle if the shouting subsides anytime soon.