Guest Essay
By: John Gault
April 28, 2009
[Editors Note: This is a guest essay by our friend and reader “John Gault” (who is John Gault?). If you would like to post an essay you are very welcome. Just send the essay to AllenWells@mindspring.com and I will post it for you. ]
Several years ago the History Channel aired their “Top 100 Greatest Humans” show and the number one slot did not go to Jesus, Einstein or Elvis. Rather, it went to Johannes Gutenberg. Gutenberg was the inventor of the printing press. At first thought, this may seem like an odd choice. The reason he was chosen (by a large panel of scholars), was that his invention allowed for the first time news to spread to large regions. Exact words could be read and understood, without lost meanings or facts, which is often the case using only word of mouth communication. Think about it… this does make sense. After all, the Bible and the tenets held within were only able to spread due to Gutenberg’s invention. Thusly, Gutenberg is the father of communication.
Centuries later, we now have the extraordinary World Wide Web. The Web has literally transformed the world. The benefits of the Web are very well known; there is little point in trying to list them.
What about the evils of the internet? For all the talk about the indispensable freedom of the internet, very little is ever mentioned about the dark side for existing businesses.
This is not a discussion about pedophiles scouring MySpace, or pornographic websites (we have Dateline with Chris Hansen for that). Rather, the dark side is about a loss of appreciation for art, as well as skilled workers. One can clearly see a future where people no longer get paid besides those with brick and mortar jobs. The problem is that the internet makes thing just so easy, that people just don't want to pay for anything anymore. Now let’s be straight here, new technology always replaces the old and that’s life. The Model T replaced horse and buggies, (thank goodness). However the new technology always created new costs for those who purchased them or used them, and new income for those providing the new service or product. The internet is an entirely different beast.
A good example of this is the article you are reading. Contrary to what many think, 99.9% of bloggers make zero or next to zero dollars. Rather, they do it for passion. And why are blogs free? Because users abandoned early blog sites that charged a fee. The only way to truly make a livable income by blogging is by having hundreds of thousands of unique visitors to your blog and getting the attention of major advertisers, which will then pay you whenever a visitor clicks on a banner ad. There are probably less than 50 blogs which make big money, out of the millions of blogs.
As you probably know, national newspapers are shutting down every week. People simply do not want to pay for a newspaper when they can get fresh and immediate news for free. I will not be renewing my newspaper service. By the time I get my Sunday paper, I’ve already read all the news online or seen it on cable news. Newspapers are closing down, one by one, because it's old news by the time it hits the web, and the web articles are free. YouTube just announced they are starting a TV channel that will offer all favorite TV shows online. At some point, I could cancel my cable service and watch online, as I already do with many shows.
The reason I pay for HBO is because I enjoy Real Time with Bill Maher. Incidentally, I just read that HBO is testing an offering of all their content online. This means (for me) as soon as this is available I will be canceling my cable service. Certainly there will be a fee, but free shows will be posted on other sites such as youtube, which brings us to the mother of all internet catastrophes…Music.
Popular music has always made the bulk of their money from teenagers. This goes all the way back to Buddy Holly, The Beatles, to The Rolling Stones. Naturally older people purchased music as well, but in much fewer numbers. Since the advent of the internet, record sales have been in such a steep decline as a result of free sites with servers all over the world, and most experts agree there is nothing that can be done about it.
In 2000, US consumers purchased roughly 785 million albums. In 2008, that number dropped by 200 million. So far this year, record sales are down another 20%. Well how about ITunes you ask? It’s nice in theory, but it’s simply not working. In 2008, 95% of the music downloaded from the internet was done illegally, meaning for
This is why we now have these terribly unoriginal and manufactured pop stars. Think of your favorite music. What do you listen to most often? Is it a new act from the last five or ten years? If you are like the majority, the answer is no. Turn on the radio and you’ll notice an interesting phenomenon, which is that the most popular stations are those that play music from the 1980’s and 1970’s. This makes sense because in those two decades record labels were signing up thousands and thousands of artists. What this means for us and our children, is that fifty years from now, we will still be listening to those same artists because that unfound talent playing in his garage will never get signed, he will never have that big record, which would allow him to make a second and a third album, and so on.
To make this point even more clear to you, let me ask you a question. Who does EMI, one of the worlds biggest (and few) remaining record labels, make their money from? Any guesses? Some of the hot new acts? Perhaps a singer with a number one pop song you’ve heard on the radio? Nope…Any guesses? EMI survives due to their catalogue of three particular British acts-The Beatles, Queen and Led Zeppelin. They can’t make a dime from new bands or singers.
The internet has also changed the landscape of the “consulting” world. Do you realize how many consultants are without jobs because everything you could get, advice wise, is available for free online?
Two weeks ago, there was a problem with my toilet. For those that don’t know me, I am not a handy man whatsoever. Years ago, I would have called a plumber. But instead, I googled it, and found a free site that gave detailed step by step instructions on how to repair every possible toilet problem and voila- I fixed the toilet. There will always be a need for plumbers of course, but I guarantee you their phones ring much less these days. Shakespeare’s wish in some ways has come true, “Kill All The Lawyers.” Do you realize how much money lawyers have lost due to the internet? (Yes I know, this is wonderful news indeed). Every legal form needed is available online for free, or for very cheap to do your own basic legal work. In fact many lawyers who don’t work in a niche field are struggling to make ends meet these days.
Like I said, brick and mortar businesses will always be there, such as home builders, etc. But many white collar and some blue collar jobs will become extinct. However, unlike in times past, the new technology will not replace the old business platform with new jobs. Rather, there will be lots and lots of free stuff. As they say, the best stuff in life is free. As for musicians…perhaps you should learn another trade that will utilize your creativity. How about a journalist? Oh wait, scratch that…
With Love and Friendship,
John Gault
John Galt pays to watch Bill Maher? Isn't that somewhat out of character?
ReplyDeleteI enjoy hearing the other side, as long as it's done in a humorous way. He's right about a few things, but wrong about most.
ReplyDeleteI think he is a pompous know it all, as are most liberals.He hates everything, loves nothing, complains constantly and blames others for every problem. He contributes no constructive criticism, and other than being a talking head, contributes nothing to society as a whole. In short... he is like a fly, spreads shit and bothers people.
ReplyDelete