Using Creative Fiction To Increase Value Of Trinkets On eBay

from the using-infinite-goods... dept

When we talk about understanding how to embrace the economics of infinite goods, one of the key points I've tried to make is that every product is a bundle of scarce and infinite goods. That's a point that some people have a lot of trouble with at times, insisting that some people who create infinite goods have no scarcities to sell... and, conversely, that those who make scarce goods, sometimes have no infinite goods to give away with them. While it may be a bit more complicated to separate out the scarce and infinite goods, it doesn't mean they don't exist.

Parker writes in to point out a fascinating example. Apparently a group of fiction writers are experimenting with selling physical goods on eBay with fictional stories given away "free" in the description. The project is called Significant Objects, and involves a bunch of fiction writers purchasing random trinkets, and then coming up with a neat story to go with them. The post at io9 notes that some stories seem better than others at increasing the auction bids, but points out that: "If Rosenfeld's success is any indication, these authors may actually get paid more for short fiction on eBay than they would at most publications."

Again, some will incorrectly claim that we're saying that fiction writers should start selling crap on eBay, but that's not it at all. This is just one (fun) example of many of content creators smartly using infinite goods (the stories) to make a scarce good (the trinket) more valuable, and putting in place a business model to profit from it. Once again, we learn that creativity knows no bounds, not just in creating content, but in playing around with new business models.

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Writers' Guild Claims Studios Ignoring Earlier Settlement As Actors Get Ready To Strike

from the this-won't-end-well dept

While I have no doubt that the movie studios are being sleazy and underhanded in how it deals with both writers and actors concerning various contracts, it still seemed like both movie and TV writers were making a big mistake in demanding residuals for internet usage. All that does is make it more difficult to get that content online. And, of course, it meant that actors were going to fight for the same thing.

Now, just as the studios and actors had their negotiations breakdown, the Writers' Guild is claiming that producers are not living up to their end of the deal struck earlier this year. The writers claim that they're not getting the promised residuals, and the producers seem to be disputing which content is covered by the agreement. The writers say that all modern content from the past few decades is covered, while producers say the agreement only covers content made after February 13th of this year -- the date of the settlement.

To be honest, the whole dispute is rather silly. Any such system of royalties is going to break down. It may have worked in the past, but it's based on that same old concept of artificial scarcity that makes it more difficult to adapt to the modern economic reality of digital content. By insisting that the studios have to pay residuals on content reused on the internet (effectively getting writers and actors paid multiple times for the same work), it just solidifies the barriers for the folks who employ those writers and actors to adapt to the modern economic and technological reality. The writers and actors are just harming themselves by making it harder for studios to move into the internet era, adding tremendous additional costs beyond what was already paid for.

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Hollywood Writers Eye Startup Life

from the risky-business dept

The LA Times reports on ongoing negotiations between writers and venture capitalists to create Hollywood startups. Apparently "dozens" of Hollywood writers are looking to launch companies that would allow them to produce video content that would be distributed directly to fans on the web. We've noted that there are already a number of companies pursuing this strategy, and with thousands of talented writers sitting idle, this is an ideal time to start more of them. In the long run, these kinds of startups will ensure writers get compensated fairly because it will give writers who feel they're under-compensated an exit option. On the other hand, the LA Times makes clear that writers jumping into alternative business models may find that the reality of Hollywood startups to be a culture shock. A lot of successful online content outfits tend to be shoestring operations, and it's likely to take a few more years before the bulk of viewers make the switch to Internet-based sources of information. Writers used to the relatively large budgets and large audiences of Hollywood studios may find it difficult to adjust to being at a web startup that no one has (yet) heard of. This may explain why in a town with ten thousand writers, only "dozens" are looking at the startup option. On the other hand, those writers with an appetite for risk or a thirst for creative control may thrive in an environment where they call the shots and reap a much larger share of the rewards if they succeed.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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Staples Sued By Canadian Writers And Publishers For Photocopying Books

from the had-to-happen-at-some-point dept

Michael Geist points us to the news that Access Copyright, an organization representing approximately 9,000 Canadian publishers and writers has sued Staples/Business Depot for copyright infringement over photocopying done at the stores in Canada. They're asking for $10 million, which Geist notes is "the largest lawsuit ever launched over copyright infringement of published works in Canada." For photocopying books in stores? Are book publishers really worried about the photocopier menace? Hopefully there's more to this claim than just the fact that people can photocopy passages from a book at Staples. It's pretty difficult to believe that this practice is widespread enough to cause any serious harm to publishers or writers. If it's just about people copying an occasional passage, as Geist notes, a previous lawsuit against libraries had found that the libraries weren't responsible and that "fair dealing" (similar to fair use in the states) shouldn't be constrained. Sure, if Staples were somehow copying books and selling the photocopies out the back you could make an argument that it's an issue, but if people are just using the photocopier in the store to copy parts of a book for personal reasons, it's hard to see the rationale here.

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Movie Industry: Live By Royalties, Die By Royalties

from the funny-how-that-works-out dept

One of the things that has always been part of the problem with the entertainment industry's business model is the idea that any time any of its content is used for anything, the industry needs to get paid. Most of the rest of the world works in a work-for-hire world. You get paid to do a job and then you're done. The factory worker gets his salary and doesn't make extra royalties every time one of the widgets he builds is sold or resold. Otherwise, you get weird situations with people whining that they need to keep getting paid for work they did 50 years ago. Of course, if you're from the entertainment industry (and I can already hear you readying your replies), you insist that this is how it must be done -- despite plenty of evidence that it need not be done this way (and that doing it that way can limit the potential market for the content). Apparently, however, the movie studios disagree with you. Well, partly. They agree that's how it must be done when they're getting paid money. So every time a movie is being shown or sold, you better believe the studios want their cut. However, the studios feels quite differently when they have to pay money out. That's why they're trying to negotiate residuals out of the new writers' contract. That's right. Suddenly, the movie industry that insists it must get paid for every possible use of a movie, doesn't think it makes sense to pay the writer after the initial set fee for writing the movie. It actually makes much more economic sense for the writers to be paid a straight fee with no residuals -- but it's a bit hypocritical for the Hollywood studios to claim it makes sense when it benefits them and doesn't when it costs them.

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