The Beatles have come to iTunes. In one of the most insignificant events of the year, Apple hit newlines everywhere. Why is it insignificant? The Beatles were one of the most popular bands in history, but every fan already owns a CD. They can use iTunes to rip their CD for free. Even so, people are making a big deal over the new offering. Why? It's symbolic. Now that the Beatles have adopted online sales, the transition to online delivery is solidified. However, the transition won't stop with music, and it shouldn't.
Over the years, entertainment groups (TV, Movies, Music, Books) have struggled with online. How do you protect your Intellectual Property in a digital world? How do you incorporate advertising (and make money) online? How do you keep online from cannibalizing your traditional markets with higher margins?
The IT world has been back and forth on DRM issues. After the disastrous Sony DRM debacle and iTunes' more successful (but equally frustrating) 5 copy limit, online music has moved away from DRM. Ironically, music downloads have decreased: showing that the best way to combat digital piracy is universal availability and low costs.
Hulu has revolutionized online TV. It offers large selection of high-quality shows, many the day after it airs. Most surprisingly though, is that it has done this while using traditional advertising methods. Just like over-the-air broadcast, the viewer's program is interrupted 2-3 times in a 30 minute period to show advertisements. The introduction of Google TV is likely going to use and increase viewers in this online distribution.
Oddly, most groups don't like the idea of going online. While most companies have learned that if they don't put their material online, others will (in a less legitimate way), they put it online with a delay. Ten years ago, you had presented an almost free way to create a second channel for a television station, the executives would have jumped on the opportunity. Today they are hesitant to adopt, but the problem is one of perspective. Executives need to think about getting their material to the viewers in as many ways as possible- the money making opportunities will follow.
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