The problem with companies who have built their business around free is that it is far from free to remain successful. The more success you have in delivering free, the more expensive it is to stay at the top. The more success you have, the more important it is to management to remain successful.  The more important remaining successful is to management, the more money they will spend, the more chances they will take, the more infrastructure they will build, the more people they will hire.  All of the things that will prevent them from staying lean , mean and flexible. All of the things that distract them from innovating within their core competency.

I love this on going discussion. Of course all of you who think that the OPEN internet will be the primary platform for the delivery of traditional tv content are wrong . But hey, thats what makes a market. Before I get into dismissing some of the traditional arguments why Online TV will take over, let me start you with one that hasn’t been used. Rural Broadband.

As Digital Media Wire readers ready themselves for the highly anticipated Digital Music Forum East, here’s an overview of the annual MIDEM music conference that just concluded in Cannes, France. The annual music industry happening, MIDEM, is a must attend event for global players in the music business.  This year’s MIDEM attendees were welcomed by moody skies over Cannes, which were symbolic of the state of the industry overall.  Along La Croisette, rain pelted delegates darting from the Palais de Festivals to the deal making hubs of the Majestic and Carlton hotel bars.  

Warner Bros. just became the latest studio to announce cut backs, unveiling plans to eliminate 800 jobs, about 10% of its global workforce, through layoffs, attrition and outsourcing. The move follows similar cut backs at Paramount Pictures and NBC Universal, as well as earlier downsizing moves by Warner Bros. parent Time Warner. In a memo to staffers announcing the cuts, Warner Bros. toppers Barry Meyer and Alan Horn called the decision painful but necessary.

Los Angeles - Machinima.com, a community website focused on showing user-generated and professional videos, gameplay and trailers from video games, has raised $3,85 million in new financing. The round was led by MK Capital and other private investors. The Machinima network is the ninth most subscribed YouTube channel and serves more than 30 million videos views per month. The new round of financing will be used to fund "business expansion."

Is scarcity still a viable foundation for a business model for content owners? For most of their histories, movie and TV studios relied on a strategy of limited distribution to extract maximum value from their works. Movies were released through a carefully ordered sequence of exclusive windows defined by distribution channel (theaters, DVD, pay-TV, broadcast); network TV series didn't enter the broader syndication market for three or four years after their debut, assuming the series lasted that long. In each case, the relative scarcity of the content provided the content owner with maximum pricing power. Since the advent of digital platforms, however, ubiquity has become the name of the game, challenging content owners' pricing power and business models.