Record Companies Refused to See Efficiency of Napster Distribution System

AppetiteForSelfDestructionBK2013-07-13.jpg

Source of book image: online version of the WSJ review quoted and cited below.

(p. A15) . . . the central character in “Appetite for Self-Destruction” is technological change.
. . .
Record labels scrambled to negotiate with Napster and develop a legal version of the service with multiple revenue streams. The attempts all failed. In Mr. Knopper’s telling, there were unreasonable demands on all sides. But he faults music executives for “cling[ing] to the old, suddenly inefficient model of making CDs and distributing them to record stores. . . . In this world, the labels controlled — and profited from — everything.” In the new world being ushered in by Napster, he writes, control was shifting “to a snot-nosed punk and his crazy uncle.”
The labels’ inability to reach an agreement with Napster destroyed “the last chance for the record industry as we know it to stave off certain ruin,” Mr. Knopper writes in a typically overheated passage. Had a deal been consummated, he suggests, a legal version of Napster might have generated revenues of $16 billion in 2002 and saved the industry. Whether or not the author’s estimate is accurate, his larger point remains: The music industry’s big mistake was trying to protect a business model that no longer worked. Litigation would not keep music consumers offline.

For the full review, see:
JEREMY PHILIPS. “BUSINESS BOOKSHELF; Spinning Out of Control; How the record industry missed out on a chance to compete in a new digital world.” The Wall Street Journal (Weds., February 11, 2009): A15.
(Note: first two ellipses added; third ellipsis in original.)

The book under review is:
Knopper, Steve. Appetite for Self-Destruction: The Spectacular Crash of the Record Industry in the Digital Age. New York: Free Press, 2009.

The Decay of River Rouge’s Diseconomies of Scale

RiverRougeFordRollingHall2013-06-28.jpg “The rolling hall at Ford’s River Rouge plant, one of Andrew Moore’s photographs of Detroit.” Source of caption and of the Andrew Moore photo: online version of the NYT article quoted and cited below.

Ford’s River Rouge plant near Detroit is a standard textbook example of diseconomies of scale (aka diminishing returns to scale). The image above is an apt illustration of the consequences of diseconomies of scale.

(p. 19) A Connecticut native, Mr. Moore moved to New York in 1980, living near South and John Streets in Lower Manhattan. At night he would wander the neighborhood taking pictures of the construction of the South Street Seaport, which kindled an interest in documenting “life in flux,” he said. “I like places in transformation, the process of becoming and changing.”
. . .
Photos like those of the enormous rolling hall at Ford’s River Rouge plant and a sunset over the Bob-Lo Island boat dock were inspired, Mr. Moore said, by 19th-century American landscape painters like Frederic Church and Martin Johnson Heade.

For the full story, see:
MIKE RUBIN. “Capturing the Idling of the Motor City.” The New York Times, Arts&Leisure Section (Sun., August 21, 2011): 19.
(Note: ellipsis added.)
(Note: the online version of the story has the date August 18, 2011.”)

Andrew Moore has a book of his photos of Detroit:
Moore, Andrew, and Philip Levine. Andrew Moore: Detroit Disassembled. Bologna, Italy: Damiani/Akron Art Museum, 2010.

The Precautionary Principle Stops Technological Progress

(p. 247) All versions of the Precautionary Principle hold this axiom in common: A technology must be shown to do no harm before it is embraced. It must be proven to be safe before it is disseminated. If it cannot be proven safe, it should be prohibited, curtailed, modified, junked, or ignored. In other words, the first response to a new idea should be inaction until its safety is established. When an innovation appears, we should pause. Only after a new technology has been deemed okay by the certainty of science should we try to live with it.
On the surface, this approach seems reasonable and prudent. Harm must be anticipated and preempted. Better safe than sorry. Unfortunately, the Precautionary Principle works better in theory than in practice. “The precautionary principle is very, very good for one thing–stopping technological progress,” says philosopher and consultant Max More. Cass R. Sunstein, who devoted a book to debunking the principle, says, “We must challenge the Precautionary Principle not because it leads in bad directions, but because read for all it is worth, it leads in no direction at all.”

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Walker Says Those Who Call Him “Patent Troll” Want His Property Without Paying

WalkerJayPatentDefender2013-06-28.jpg

Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. B1) Jay Walker turned his idea for “name your own price” Internet auctions into a fortune by starting Priceline.com Inc. Now the entrepreneur is trying to cash in on his ideas by suing other companies.

Since it was founded in 1994 as a research lab, Walker Digital LLC has made much of its money by spinning out its inventions, like online travel agent Priceline and vending-machine firm Vendmore Systems LLC, as independent businesses.
. . .
Mr. Walker defends his newly aggressive tactics, which some critics compare to those of “patent trolls,” a derogatory term for firms that opportunistically enforce patents. Without the lawsuits, he said, his patents could expire while other companies exploit them. Patents have a 20-year lifespan.
“Not only are we not a troll, but the people who want to label me are often the same ones that want to use our property and not pay,” Mr. Walker said in an interview.

For the full story, see:
JOHN LETZING. “Founder of Priceline Spoiling for a Fight Over Tech Patents.” The Wall Street Journal (Mon., August 22, 2011): B1 & B10.
(Note: ellipsis added.)

Amish Break the Golden Rule

(p. 237) If we apply the ubiquity test–what happens if everyone does it?–to the Amish way, the optimization of choice collapses. By constraining the suite of acceptable occupations and narrowing education, the Amish are holding back possibilities not just for their children but indirectly for all.
If you are a web designer today, it is only because many tens of thousands of other people around you and before you have been expanding the realm of possibilities. They have gone beyond farms and home shops to invent a complex ecology of electronic devices that require new expertise and new ways of thinking. If you are an accountant, untold numbers of creative people in the past devised the logic and tools of accounting for you. If you do science, your instruments and field of study have been created by others. If you are a photographer, or an extreme sports athlete, or a baker, or an auto mechanic, or a nurse–then your potential has been given an opportunity by the work of others. You are being expanded as others expand themselves.
. . .
. . . as you embrace new technologies, you are indirectly working for future generations of Amish, and for the minimite homesteaders, even though they are not doing as much for you. Most of what you adopt they will ignore. But every once in a while your adoption of “something that doesn’t quite work yet” (Danny Hillis’s definition of technology) will evolve into an appropriate tool they can use. It might be a solar grain dyer; it might be a cure for cancer.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: ellipses added.)

iPhone: “A Gleaming World of Innovation and Opportunity, of Capitalism Behaving Well”

SubwayIphoneUse2013-06-21.jpg “The theft of electronic devices like iPhones has fueled a rise in subway crime this year, the police say. In the past, New Yorkers were mugged, sometimes killed, for bomber jackets, Cazal glasses and Air Jordan sneakers.” Source of caption: print version of the NYT article quoted and cited below. Source of photo: online version of the NYT article quoted and cited below.

(p.24) The current spate of iPhone thefts feels, if anything, more poignant than disruptive. Apple products have always read as cooler than their rivals’ because their design suggests a gleaming world of innovation and opportunity, of capitalism behaving well — a world that seems ever diminishing, ever less accessible to the struggling and young.

Unlike the sneakers and glasses that caused such a fury in the ’80s and ’90s, iPhones didn’t originate in the celebrity system. They come with a democratic ethos (if not the analogous price tag); BlackBerrys are for suits, but even a child can work an iPhone. Wasn’t everyone supposed to have a shot?

For the full story, see:
GINIA BELLAFANTE. “BIG CITY; Easy to Use and Easy to Steal, a Status Object Inches Out of Reach.” The New York Times, First Section (Sun., October 30, 2011): 24.
(Note: the first paragraph quoted above is from the print version, rather than from the somewhat different online version. The second quoted paragraph is the same in both versions.)
(Note: the online version of the story has the date October 28, 2011, and has the slightly different title “BIG CITY; Easy to Use, or Steal, but Inching Out of Reach.”)

“Self-Reliant” Amish Depend on the Technologies of the Outside World

(p. 230) The Amish are a little sensitive about this, but their self-reliant lifestyle as it is currently practiced is heavily dependent on the greater technium that surrounds their enclaves. They do not mine the metal they build their mowers from. They do not drill or process the kerosene they use. They don’t manufacture the solar panels on their roofs. They don’t grow or weave the cotton in their clothes. They don’t educate or train their own doctors. They also famously do not enroll in armed forces of any kind. (But in compensation for that, the Amish are world-class volunteers in the outside world. Few people volunteer more often, or with (p. 231) more expertise and passion, than the Amish/Mennonites. They travel by bus or boat to distant lands to build homes and schools for the needy.) If the Amish had to generate all their own energy, grow all their clothing fibers, mine all metal, harvest and mill all lumber, they would not be Amish at all because they would be running large machines, dangerous factories, and other types of industry that would not sit well in their backyards (one of the criteria they use to decide whether a craft is appropriate for them). But without someone manufacturing this stuff, they could not maintain their lifestyle or prosperity. In short, the Amish depend on the outside world for the way they currently live. Their choice of minimal technology adoption is a choice–but a choice enabled by the technium. Their lifestyle is within the technium, not outside it.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Larry Page Makes an O.K. Decision Now, Rather than a Perfect Decision Later

PageLarryGoogleCEO2013-06-21.jpg “Larry Page has pushed for quicker decision-making and jettisoned more than 25 projects that were not up to snuff.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) MOUNTAIN VIEW, Calif. — Larry Page, Google’s chief executive, so hates wasting time at meetings that he once dumped his secretary to avoid being scheduled for them. He does not much like e-mail either — even his own Gmail — saying the tedious back-and-forth takes too long to solve problems.
. . .
(p. A3) Borrowing from the playbooks of executives like Steven P. Jobs and Mayor Michael R. Bloomberg, he has put his personal imprint on the corporate culture, from discouraging excessive use of e-mail to embracing quick, unilateral decision-making — by him, if need be.
“Ever since taking over as C.E.O., I have focused much of my energy on increasing Google’s velocity and execution, and we’re beginning to see results,” Mr. Page, 38, told analysts recently.
. . .
Despite the many external pressures on Google, it is dominant in its business and highly profitable. But, when asked at a recent conference about the biggest threat to his company, Mr. Page answered in one word, “Google.”
The problem was that the company had ballooned so quickly — it now has more than 31,000 employees and $27.3 billion in revenue so far this year — that it had become sclerotic. A triumvirate of Mr. Page, his co-founder, Sergey Brin, and Eric E. Schmidt, Google’s former chief and current chairman, had to agree before anything could be done. The unwieldy management and glacial pace of decision-making were particularly noticeable in the Valley, where start-ups overtake behemoths in months.
It is different now.
“It’s much more of a style like Steve Jobs than the three-headed monster that Google was,” said a former Google executive who has spoken with current executives about the changes and spoke anonymously to preserve business relationships. “When Eric was there, you’d walk into a product meeting or a senior staff meeting, and everyone got to weigh in on every decision. Larry is much more willing to make an O.K. decision and make it now, rather than a perfect decision later.”

For the full story, see:
CLAIRE CAIN MILLER. “Google’s Chief Works to Trim a Bloated Ship.” The New York Times (Thurs., November 10, 2011): A1 & A3.
(Note: ellipses added.)
(Note: the online version of the story has the date November 9, 2011.)

Limited Choice Is Cost of Amish Community Closeness

(p. 230) . . . the cost of . . . closeness and dependency is limited choice. No education beyond eighth grade. Few career options for guys, none besides homemaker for girls. For the Amish and minimites, one’s fulfillment must blossom inside the traditional confines of a farmer, tradesman, or housewife. But not everyone is born to be a farmer. Not every human is ideally matched to the rhythms of horse and corn and seasons and the eternal close inspection of village conformity. Where in the Amish scheme of things is the support for a mathematical genius or a person who might spend all day composing new music?

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: ellipses added.)

Amish “Are Big Boosters of Genetically Modified Corn”

(p. 222) The Amish use disposable diapers (why not?), chemical fertilizers, and pesticides, and they are big boosters of genetically modified corn. In Europe this corn is called Frankenfood. I asked a few of the Amish elders about that last one. Why do they plant GMOs? Well, they reply, corn is susceptible to the corn borer, which nibbles away at the bottom of the stem and occasionally topples the stalk. Modern 500-horsepower harvesters don’t notice this fall; they just suck up all the material and spit out the corn into a bin. The Amish harvest their corn semimanually. It’s cut by a chopper device and then pitched into a thresher. But if there are a lot of stalks that are broken, they have to be pitched by hand. That is a lot of very hard, sweaty work. So they plant Bt corn. This genetic mutant carries the genes of the corn borer’s enemy, Bacillus thuringiensis, which produces a toxin deadly to the corn borer. Fewer stalks are broken and the harvest can be aided with machines, so yields are up. One elder Amish man whose sons run his farm said he was too old to be pitching heavy, broken cornstalks, and he told his sons that he’d only help them with the harvest if they planted Bt corn. The alternative was to purchase expensive, modern harvesting equipment, which none of them wanted. So the technology of genetically modified crops allowed the Amish to continue using old, well-proven, debt-free equipment, which accomplished their main goal of keeping the family farm together. They did not use these words, but they made it clear that they considered genetically modified crops appropriate technology for family farms.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: italics in original.)

Cars Increase Our Individual Freedom

(p. A13) Cars appeal powerfully to one of the most important conservative values: individual freedom. Straphangers in public conveyances can only travel in groups, moving along with hordes of strangers according to schedules imposed by others. Bicyclists, free as they may be, are clearly limited by distance and time constraints. Once you get into a car, however, you go wherever you want, whenever you want, subject only to your ability to put gas in the tank.

For the full commentary, see:
MICHAEL MEDVED. “OPINION; Honk If You Were Ever Devoted to a Car; I asked for a chance to say a proper goodbye to our family Plymouth. The night before we traded the car in, I slept in it.” The Wall Street Journal (Sat., March 9, 2013): A13.
(Note: the online version of the commentary has the date March 8, 2013.)