Archive for November 2009
Weekly Pulse: Problems for the Public Option
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By Lindsay Beyerstein, Media Consortium Blogger
The House released a final version of the health reform bill. It has a public option all right, but not the robust version progressives were hoping for. The public plan would only cover 2% of Americans and premiums will cost more than anticipated.
Meanwhile, Sen. Joe Lieberman (I-CT) continued to threaten to join a Republican filibuster of a health care bill with a public option. A lot of people still think he’s bluffing. Realistically, the public option probably faces more serious threats from inside the Democratic caucus. It’s been whittled down at an alarming rate. (more…)
New Abundances and Their Effects
As physical limitations for how media is distributed and consumed decline, the competitive landscape changes fundamentally. In short, new abundances have turned the economics of distribution on its head.
For example, “loss-leader strategies” are inverted. (For more information about “loss-leaders,” a product sold below costs to create other sales, download Vol. 2, Chapter 4 of The Big Thaw.) Companies used to give away 1% of a product, such as perfume, to get the samplers to buy the other 99%. Now, companies such as Flickr or Skype give away 99% (often called a “freemium”) to sell 1% in the form of premium purchases. For example, Flickr Pro costs $25 per year. This flip has generated new abundances of products. (more…)
Weekly Audit: Too Big to Fail is Just Too Big
by Zach Carter, Media Consortium Blogger
Last week, President Barack Obama released key legislation designed to fight the banking industry’s too-big-to-fail problem. But Obama’s plan doesn’t actually address too-big-to-fail at all. It reinforces a broken system in which economically dangerous companies are bailed out whenever they drive themselves to the brink of failure.
If we want the economy to support all people, we have to break up the big banks and start treating the creation of good jobs as an economic priority on par with Wall Street rescues. (more…)
Journalism’s New and Emerging Realities
The new competitive landscape requires media organizations to develop new competencies to succeed. Finding new ways to meet users’ needs and desires will be the sources of value that drive new business models.
These four questions about new industry realities reveal opportunities for change:
- How is the competitive landscape changing?
- What new competencies are needed to succeed?
- What needs can be met, problems solved or desires met to create value?
- How are media organizations structured to capture this value? (more…)