Presenting Part 3 of our new series (Part 1 and Part 2) of guest posts by Saul Rothbart, who is taking us on a “history tour” of capitalism — and speculating on how today’s technological advances might impact our tomorrows…
VIRTUAL CAPITALISM 101
Real news is what happens to you.The “truth of experience” so to speak.
As a commercial entity, mass media news aims to leverage this notion to the broadest populations of shared truths of experience. And articulated with the right measure and mix of fluff, bang and stoke, can effectively influence (manipulate?) consumer markets in big matters like peace and war. Or small ones like chewing gum or not chewing gum.
The barriers of entry to own or control a media (any media) are steep and delivery costs are prohibitively high. Just turning on studio lights is normally cost-accounted at six figures given the incidentals that need to be taken into consideration. Same goes with setting up a newspaper, magazine or book run.
With traditional media, profitability comes from a business methodology that allows the producer to get dollars per consumer unit while incrementally reducing the delivery cost to pennies per unit through market scale. It’s a high risk business where if you get the content right and connect to a broad market, you can make a very rich profit.
But if you get it wrong (and wrong being not connecting to a broad market), the end product is no better than burnt toast.Read More...