Remember the Buggy Whip?

If you do you're older than just about everyone. The buggy whip was used to control horses. As cars replaced horse-drawn wagons the buggy whip largely dropped out of sight. Today the term refers to things that have become outmoded, particularly in cases where the manufacturer or provider doesn't see it happening until it's too late. Do you see any "buggy whips" around you?

One is the recording industry. With the advent of CDs and then iPods and iTunes, the industry was changed radically. Profits for record producers, once soaring, have tumbled.






















In his book "Appetite for Self-Destruction," author Steve Knopper asserts that the music industry erred in trying to protect a business model that no longer worked. Consumers had circumvented the traditional music distribution system thanks to file sharing technology. Rather than find ways to incorporate new technology into their businesses, producers sued their customers. The strategy failed. Consumers won.

At a time when the economy is having trouble, the story reminds us of how the marketplace continues to shape the future, often in exciting ways.

Another example is the media--specifically television and newspapers. Profits are dropping rapidly. Note these trends:

• The Tribune Company, owner of the Chicago Tribune, Los Angeles Times, and Los Angeles television station KTLA, recently filed for bankruptcy.
• The Christian Science Monitor has ceased publishing in print, relying solely on electronic publishing.
• The average number of viewers watching network TV is dropping. TV station revenues dropped 8% or more in 2008.
• Media payrolls are declining with only the biggest names earning more pay.

Quick Vue: So, what does the future hold? Here are two videos that provide some clues. The first will introduce you to a new way of reading newspapers on-line. The second video features media experts Jeff Jarvis, founder of Entertainment Weekly, and Andrew Heyward, former president of CBS News.





Sources for this post included The Wall Street Journal, article by Jeremy Philips.