How to lose a billion? The impact of the Internet on industries
The theme throughout is the shift of power to the consumer and away from the seller, who used to control supply, distribution, and "marcom" (marketing message).
Getty Images (GYI) -- minus 33% ($1 billion) in 10 days
- supply replacement - vast online collections of photos and microstock collections serve as alternatives to traditional stock agency offerings (given a choice of thousands of rose pictures, a $1 rose picture will probably be perfectly sufficient for a buyer's needs, versus a rose picture that comes with much more complex license terms or is more costly.
- demand displacement - new use cases, better findability, greater ease of use, more flexible license terms, and lower cost shift demand away from traditional stock agency offerings; so while the number of photos that are licensed and used may skyrocket (everyone can add photos to blog posts), the dollar value of the overall market "pie" will shrink when the average price per photo approaches $0.00 (free). And market share will also scatter away from traditional dominant players to the multitude of smaller alternative players.
Blockbuster (BBI) -- minus 42% ($0.7 billion) in about 4 months
- demand displacement -- the same supply of "entertainment content" made easier to access and view by online rental services (e.g. NetFlix), on-demand cable, bite-sized downloads (e.g. Apple iTunes), and distributed sharing technology (e.g. BitTorrent).
Newspapers (Classifieds industry)
Telecom (Long distance charges)
Music (distribution of plastic discs and promotion of selected artists)
PDF eBooks - or for that matter any downloadable product including blog templates, Flash presentations, MP3 music, podcasts, video clips, digital photographs, ringtones, software utilities,.. can be sold on the web very easily through a service called PayLoadz Express.
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