18 Pages Posted: 10 Jan 2011
Date Written: January 9, 2011
The first decade of the new millennium has been the decade of digital distribution for media products. All products that can be digitized have either been affected, or will soon be. Since the early days of the Internet, piracy has emerged as an important threat to media firms. But new technology also brings an opportunity for firms to engage in new models of pricing. Many of these new forms of pricing produce revenue that is not readily attributed to particular owners, making it necessary for sellers to create new methods for sharing revenue, or pie-splitting. Affected industries have mobilized to enact a number of non-market responses, including recent efforts to induce Internet Service Providers to control the flow of unpaid content through their pipes. This essay reviews the threats, opportunities, and challenges to media firms that have emerged over the past decade, with attention to piracy, pricing, pie-splitting, and pipe control.
Suggested Citation: Suggested Citation
Waldfogel, Joel, The Four P's of Digital Distribution in the Internet Era: Piracy, Pie-Splitting, and Pipe Control (January 9, 2011). Review of Economic Research on Copyright Issues, Vol. 7, No. 2, pp. 3-20, 2010. Available at SSRN: https://ssrn.com/abstract=1737446