The celebrity economy.
The last of this century's great trends was noted by acute observers in 1996, yet somehow most people failed to appreciate it. Although business gurus were proclaiming the predominance of creativity and innovation over mere routine production, in fact the growing ease with which information could be transmitted and reproduced was making it ever harder for creators to profit from their creations. Today, if you develop a marvelous piece of software, by tomorrow everyone will have downloaded a free copy from the Net. If you record a magnificent concert, next week bootleg CDs will be selling in Shanghai. If you produce a wonderful film, next month high-quality videos will be available in Mexico City.
How, then, can creativity be made to pay? The answer was already becoming apparent a century ago: creations must make money indirectly, by promoting sales of something else. Just as auto companies used to sponsor Grand Prix racers to spice up the image of their cars, computer manufacturers now sponsor hotshot software designers to build brand recognition for their hardware. And the same is true for individuals. The royalties the Four Sopranos earn from their recordings are surprisingly small; mainly the recordings serve as advertisements for their arena concerts. The fans, of course, go to these concerts not to appreciate the music (they can do that far better at home) but for the experience of seeing their idols in person. Technology forecaster Esther Dyson got it precisely right in 1996: "Free copies of content are going to be what you use to establish your fame. Then you go out and milk it". In short, instead of becoming a Knowledge Economy we have become a Celebrity Economy.
Luckily, the same technology that has made it impossible to capitalize directly on knowledge has also created many more opportunities for celebrity. The 500-channel world is a place of many subcultures, each with its own culture heroes; there are people who will pay for the thrill of live encounters not only with divas but with journalists, poets, mathematicians, and even economists. When Andy Warhol predicted a world in which everyone would be famous for 15 minutes, he was wrong: if there are indeed an astonishing number of people who have experienced celebrity, it is not because fame is fleeting but because there are many ways to be famous in a society that has become incredibly diverse.
This was an excerpt from Paul Krugman's book, "The Accidental Theorist."
To read the complete article, click HERE.
The last of this century's great trends was noted by acute observers in 1996, yet somehow most people failed to appreciate it. Although business gurus were proclaiming the predominance of creativity and innovation over mere routine production, in fact the growing ease with which information could be transmitted and reproduced was making it ever harder for creators to profit from their creations. Today, if you develop a marvelous piece of software, by tomorrow everyone will have downloaded a free copy from the Net. If you record a magnificent concert, next week bootleg CDs will be selling in Shanghai. If you produce a wonderful film, next month high-quality videos will be available in Mexico City.
How, then, can creativity be made to pay? The answer was already becoming apparent a century ago: creations must make money indirectly, by promoting sales of something else. Just as auto companies used to sponsor Grand Prix racers to spice up the image of their cars, computer manufacturers now sponsor hotshot software designers to build brand recognition for their hardware. And the same is true for individuals. The royalties the Four Sopranos earn from their recordings are surprisingly small; mainly the recordings serve as advertisements for their arena concerts. The fans, of course, go to these concerts not to appreciate the music (they can do that far better at home) but for the experience of seeing their idols in person. Technology forecaster Esther Dyson got it precisely right in 1996: "Free copies of content are going to be what you use to establish your fame. Then you go out and milk it". In short, instead of becoming a Knowledge Economy we have become a Celebrity Economy.
Luckily, the same technology that has made it impossible to capitalize directly on knowledge has also created many more opportunities for celebrity. The 500-channel world is a place of many subcultures, each with its own culture heroes; there are people who will pay for the thrill of live encounters not only with divas but with journalists, poets, mathematicians, and even economists. When Andy Warhol predicted a world in which everyone would be famous for 15 minutes, he was wrong: if there are indeed an astonishing number of people who have experienced celebrity, it is not because fame is fleeting but because there are many ways to be famous in a society that has become incredibly diverse.
This was an excerpt from Paul Krugman's book, "The Accidental Theorist."
To read the complete article, click HERE.
