: Eli Noam, professor of economics and finance at Columbia University, writing in FT, looks at the structural and endemic problems in the digital content market: “The basic structural reason for this problem is that information products are characterised by high fixed costs and low marginal costs. Second, more information products are continuously being offered to users. And information products and services are becoming more “commodified”, open, and competitive.
The main result of these factors is that prices for content, network distribution and equipment are collapsing across a broad front. It seems to have become difficult to charge anything for information products and services.” Read this one carefully… [PaidContent.org]