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CaaS
@movie_pundit
Content as a Service: Artificial
Scarcity and the Post-Ownership
Economy
David Dylan Thomas
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Capitol Records Complaint
“ReDigi makes and assists its users in making
systematic, repeated and unauthorized
reproductions and distributions of Plaintiffs
copyrighted sound recordings.”
David Dylan Thomas @movie_pundit
“Digital Files Are Not Material Objects
Subject to the Distribution Right”
“The statute is quite plain. It is clear that digital
music files, which are not material objects, are
therefore neither copies nor phonorecords,
hence not subject to the distribution right. If they
were to be considered material objects, copies,
or phonorecords within the meaning of 17 U.S.C.
106(3), they would also have to be considered
material objects, copies, or phonorecords within
the meaning of 17 U.S.C. 109(a), hence exempt
anyway – in ReDigi’s case – under the First Sale
Doctrine (discussed infra).”
David Dylan Thomas @movie_pundit
Is This True?
David Dylan Thomas @movie_pundit
No Dice, Grandma
“It is beside the point that the original
phonorecord no longer exists. It matters only
that a new phonorecord has been created.”
David Dylan Thomas @movie_pundit
What the Hell Is a “Phonorecord”?
“…material objects in which sounds, other
than those accompanying a motion picture or
other audiovisual work, are fixed.”
-United States Copyright Act of 1976
(yup, 1976)
David Dylan Thomas @movie_pundit
No Dice, Grandma
“It is beside the point that the original
phonorecord no longer exists. It matters only
that a new phonorecord has been created.”
David Dylan Thomas @movie_pundit
Illegal Copy
How to Resell Your MP3’s
David Dylan Thomas @movie_pundit
How to Resell Your MP3’s
All you have to do is sell your “ 'particular'
phonorecord, be it a computer hard disk, iPod,
or other memory device onto which the file
was originally downloaded.”
David Dylan Thomas @movie_pundit
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
How we pay for a thing is tied to how
we think about that thing.
Desirable + Scarce = Expensive
Desirable + Common = Cheap
Desirable + Scarce = Expensive
Desirable + Common = Cheap
Desirable + Infinitely Replicable = ???
Artificial Scarcity
Artificial Scarcity
This. Breaks. Easily.
Record companies want you to
treat digital goods like physical
goods, until they don’t.
Publishing Is Next
Why Licensing Won’t Work
The Way We Think About Content ≠ How We Pay for It
(Judge punts on this…)
Why can’t you sell a used MP3?
Why can’t you sell a used MP3?
Because there is no such thing!
Even These Children Figured It Out
“Physical copies of works degrade with time and use, making used
copies less desirable than new ones. Digital information does not
degrade, and can be reproduced perfectly on a recipient’s
computer. The ‘used’ copy is just as desirable as (in fact, is
indistinguishable from) a new copy of the same work. Time, space,
effort and cost no longer act as barriers to the movement of
copies, since digital copies can be transmitted nearly
instantaneously anywhere in the world with minimal effort and
negligible cost. The need to transport physical copies of works,
which acts as a natural brake on the effect of resales on the
copyright owner’s market, no longer exists in the realm of digital
transmissions.”
- U.S. Copyright Office Report to Congress, 2001
Entropy is what keeps the physical
market afloat.
In digital content, the idea of an
“original” and a “copy” ceases to exist,
and we don’t have an economy for
that.
In digital content, the idea of an
“original” and a “copy” ceases to exist,
and we don’t have an economy for
that.
(But we do have a way to think about it….)
3 Kinds of Sharing
3 Kinds of Sharing
3 Kinds of Sharing
3 Kinds of Sharing
3 Kinds of Sharing
3 Kinds of Sharing
Content = Information
• It doesn’t just represent information
• It doesn’t just contain information
• It doesn’t just point to information
• It is itself information
David Dylan Thomas @movie_pundit
Is there a way to think about
monetizing content that aligns with
its fundamental nature?
David Dylan Thomas @movie_pundit
Content as a Service
This Is Not Scarce This Is
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Goods Are Going Away
Goods Are Going Away
Someone in Power Actually Said This…
"We just don't think that ownership will be
around in the future."
- Richard Wellerstein, VP, Content
Acquisition, AT&T
David Dylan Thomas @movie_pundit
Access Over Ownership
David Dylan Thomas @movie_pundit
Consumption Today
• Things magically appear when I need them.
• They go away when I don’t.
David Dylan Thomas @movie_pundit
Producing Ownership Is Expensive
David Dylan Thomas @movie_pundit
No, really, goods are going away.
There is no ONE approach,
but here is AN approach…
David Dylan Thomas @movie_pundit
It is a future of agile solutions, not inflexible ones.
Content as a Service
This Is Not Scarce This Is
Crowdsourced Patronage
Crowdsourced Patronage
Crowdsourced Patronage
Crowdsourced Patronage
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Spoken Reasons has 1,000,000
subscribers on YouTube.
Spoken Reasons has 1,000,000
subscribers on YouTube.
If only 5% of them agreed to give him $1 a
month, he would make $600,000 a year.
Spoken Reasons has 1,000,000
subscribers on YouTube.
If only 5% of them agreed to give him $1 a
month, he would make $600,000 a year.
He doesn’t need Hollywood…
Spoken Reasons has 1,000,000
subscribers on YouTube.
If only 5% of them agreed to give him $1 a
month, he would make $600,000 a year.
He doesn’t need Hollywood… …Hollywood needs him.
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
For the artist…
…crowdfunding is about not .
For the audience…
…crowdfunding is about not .
Artist Audience
Producer/Distributor
Final Cut
Gatekeeping
Pricing
Centralized Risk
Artist Audience
Platform
Final Cut Gatekeeping
Pricing
Distributed Risk
Not for everyone.
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
Creative Middle Class
Guess what costs $7 million?
Guess what costs $7 million?
The Hybrid Approach
The Hybrid Approach
The Hybrid Approach
Post-Ownership Economy
• Focus on artist, not art.
• Focus on audience, not distributor.
• Focus on passion, not product.
• Focus on access, not possession.
• Focus on relationship, not transaction.
David Dylan Thomas @movie_pundit
Content as a Service: Artificial Scarcity and the Post-Ownership Economy
David Dylan Thomas
@movie_pundit
www.daviddylanthomas.com

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Content as a Service: Artificial Scarcity and the Post-Ownership Economy