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The playing field has been leveled as streaming media technology has reduced the cost of entry into the media industry If through greed or misjudgment, the incumbent media companies maintain too large a gap between the cost of producing a media property and the prices they charge consumers for access to it, other media publishers, producing products and experiences equivalent in quality, but at lower prices, will enter the market and steal market share Any attempt to use digital rights management to generate excessive profits will be countered by other media producers happy to satisfy demand for digital media while making relatively less profit Streaming media will therefore make media products commodities However, until other media producers enter the market to fill the need, any attempt to gouge consumers may harm the streaming media industry irreparably.

Radio Frequency Identi cation (RFID)

Allied to these concerns are the same concerns that consumers already have over e-commerce, where credit card fraud and other abuses of consumer rights have proliferated If all their entertainment is subject to e-commerce transactions, they might get cheated much more frequently, with no right of redress or body to enforce fairness Until consumers find the rights management and e-commerce security measures proposed by industry attractive enough to accept, the streaming media industry will struggle to attract significant participation..

EXHIBIT 8-13

The unfortunate consequence of fragmented audiences is that it puts great pressure on content producers to lower their costs of production. This can result in the proliferation of reality TV style productions, where cameras

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tems organization Don Kosanka, OC s chief information officer, explains: The IS folks that we have are really not the technical folks you find in typical IS organizations They have a really good understanding of the business processes that we operate, and their value comes in helping figure out where technology can enable each process to become more efficient, precise, or accurate We outsource the more routine technical skill sets required to operate the IT infrastructure Kosanka is an example of the shift in thinking at OC As he says, When I first joined the firm 25 years ago, fresh out of college, I thought technology was the important driver After a few years here, I shifted my view to process Now I see the equally critical importance of people Without every employee s buy-in, you can t execute the process or realize the value in the technology.

are positioned in a house, videoing how real people live together, with the result edited into a television program. If content producers always opt for the cheapest form of populist production, streaming media will be saturated with choice, but the choice will be limited to reruns, game shows, and Wayne s World wannabes. That uniformity may, in the end, drive consumers away from the medium, once the initial novelty has worn off. Paradoxically though, the low cost of entry for content producers may actually stimulate adoption of the medium as more and more producers search for an elusive hit. For a model of how this might go, surveying what is happening with independent music production online is instructive. Bands and artists already have the means to record and distribute product of a quality similar to major-label CDs. This has tended to make many more interesting bands offer their art directly to audiences rather than to spawn a million Britney Spears clones. Perhaps streaming media will breed diversity in programming rather than uniformity.

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