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pressing a CD or DVD ever was. There is no longer a need to truck product to distribution centers nor to compete for shelf space in music and video retail outlets. No intermediaries need to make a profit, since streaming media allows content producers to sell directly to end-users worldwide. As for marketing media properties, major labels once used their stranglehold on radio to promote only their product. Studios used the limited number of film exhibitors to keep alternative media product out of circulation. Streaming media allows marketing directly to the consumer, bypassing these marketing monopolies. Building an audience for a media asset is more difficult for the incumbents, due to audience fragmentation, but easier for independent producers, since all the same marketing avenues and many new ones are now available to them. The playing field has been leveled as streaming media technology has reduced the cost of entry into the media industry. If through greed or misjudgment, the incumbent media companies maintain too large a gap between the cost of producing a media property and the prices they charge consumers for access to it, other media publishers, producing products and experiences equivalent in quality, but at lower prices, will enter the market and steal market share. Any attempt to use digital rights management to generate excessive profits will be countered by other media producers happy to satisfy demand for digital media while making relatively less profit. Streaming media will therefore make media products commodities. However, until other media producers enter the market to fill the need, any attempt to gouge consumers may harm the streaming media industry irreparably. Allied to these concerns are the same concerns that consumers already have over e-commerce, where credit card fraud and other abuses of consumer rights have proliferated. If all their entertainment is subject to e-commerce transactions, they might get cheated much more frequently, with no right of redress or body to enforce fairness. Until consumers find the rights management and e-commerce security measures proposed by industry attractive enough to accept, the streaming media industry will struggle to attract significant participation.
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The unfortunate consequence of fragmented audiences is that it puts great pressure on content producers to lower their costs of production. This can result in the proliferation of reality TV style productions, where cameras
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are positioned in a house, videoing how real people live together, with the result edited into a television program. If content producers always opt for the cheapest form of populist production, streaming media will be saturated with choice, but the choice will be limited to reruns, game shows, and Wayne s World wannabes. That uniformity may, in the end, drive consumers away from the medium, once the initial novelty has worn off. Paradoxically though, the low cost of entry for content producers may actually stimulate adoption of the medium as more and more producers search for an elusive hit. For a model of how this might go, surveying what is happening with independent music production online is instructive. Bands and artists already have the means to record and distribute product of a quality similar to major-label CDs. This has tended to make many more interesting bands offer their art directly to audiences rather than to spawn a million Britney Spears clones. Perhaps streaming media will breed diversity in programming rather than uniformity.
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If streaming media merely becomes a conduit for unacceptable, yet uncensored content, because that is the sector that seems to be the most profitable soonest, lobby groups may move to outlaw the medium, or else severely restrict and regulate it. Knee-jerk reactions are possible when there is a policy vacuum. Governments and regimes around the world that don t like their citizens to be informed and empowered may also seek to legislate to turn streaming media off within their spheres of control. Satellite television is already banned in some less-liberal Middle Eastern states. If enough opposition is brought to bear, resulting in legislation to ban or severely restrict streaming media, this may all but kill the medium at birth. It is arguable that supersonic passenger transport never found favor because of lobby groups that petitioned against the noise and pollution of the Concorde. Would supersonic air travel be as rare and expensive as it is today, if it had not been for the activities of those lobby groups and the politicians who acted to satisfy them We ll never know, but we do know that public opinion can outlaw a technology. Streaming media is at risk of being banned if all it succeeds in providing profitably is pornography.
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