"The value people were willing to pay for those products declined. And that was when those products had been scarce. We today live an era when we're already
awash in information. It's surplus, not scarce."
Tuesday, August 01, 2006
[Keyword: online journalism]. That's the message of this article from Corante, which argues that media companies expecting to make a mint from the internet are set for a disappointment. Vin Crosbie makes a comparison with the Industrial Revolution manufacturers who "believed that industrialization would just markedly decrease their costs of production, enlarging their profit margins. But as the Austro-American guru of management Peter Drucker (1909-2005) noted, "Not only did the cost of production markedly decline, but so did the value people were willing to pay for the products."