The rise of selling intangible products and how to proft despite piracy

[David Tan]

One of the appeals of the internet is the rise of selling intangible products.

audios, mp3, streaming music, stories?
Online books, pdfs, guides, online newspapers
videos, video guides, movies, tv shows, animation
pictures, images

Products that cost almost nothing to reproduce. Ofcourse, they're easily pirated and distributed.

Anyone knows what strategies are used to ensure substantial profit is made even when these products are distributed illegally through file sharing sites and softwares?

[Tephus]

They should allow torrent sites to operate on the condition that they include on the page a box to 'contribute' to the artist. Which means, they can choose to pay however much they see fit.

Many fans will feel guilty about stealing music and would want to support their bands, so maybe collecting $3 is better than nothing.

[David Tan]

So eventually despite selling intagible products, due to piracy, much of the efforts to generate revenue will have to derive from offline products/services like merchandise, concerts, books, conventions etc. Providing that special extra that can't be easily duplicated. That personal touch from the creator and the interaction.

The intangible thus becomes more and more a promotion tool to push tangible offers.

[David Tan]

Hey, lets look further into the future that when standard broadband speeds becomes sufficiently high enough to easily pirate any movie, music, video, image files in bulk. And of course, the big old internet community will become so big that it'll be virtually impossible to police. Besides sending files takes a few seconds and with millions of people doing it all the time... when piracy becomes truely a norm, what changes will it bring about the movie and music industry?

Perhaps there will be more 'ads' in them. Like in movies, you place all kinds of 'advertising' segements or product placements and stuff. Also, music may have singers singing halfway and do a short promotion for some products. Advertisers will have to provide the revenue for them to keep going.

[David Tan]

So, eventually all music, video, movie will be free. The ones that are able to charge money are the ones that offer a 'premium' offer. Like theatres with their big screen, surround sound, popcorn, movie experience. What's big in the market of the future is in selling experiences. Who can provide the best experience. Thrills, sensual, scary, insightful, spiritual experiences.

[David Tan]

Let's face it, looking at a monitor offers a minimum level of enjoyment. That's cuz we're using the cheapest equipments (monitor, normal pc, sub-standard sound system) to get entertainment.

Bringing the internet to the living room tv may increase the entertainment but it won't beat the expensive equipments and preparation from theatres, concerts.

The industry needs a new medium for entertainment. Something expensive, like maybe a 3D, realword video system that can't be duplicated by a cheapass $20 monitor at home. Some virtual environement room or 3D projector.

[ABOTadmin]

I agree with Tephus. Many people think that when customers are given the liberty to pay whatever they want, they will give little if anything at all. But the opposite is true, they'll give more.

[David Tan]

Torrent sites can't be regulated and they wouldn't want to slap such a function on their site unless..... they are given a percentage of the profits. $$$$ kaching $$$$.