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Open Source Internet Debate Paves Way for Change

Apple's battle in France over the country's proposed mandate to open up its iTunes music store to distribute other forms of content could result in radical long-term changes in the economics of content distribution, writes Diane Mermigas of The Hollywood Reporter. Meanwhile, in the U.S., the so-called "Net Neutrality" bill would effectively force network operators to keep their pipes open to any and all content providers on the Web, regardless of how much bandwidth they require. In an interesting twist, regulation is aiming to open up or keep open the Internet markets. Ironically, the steady increase in direct downloads, which would be aided even further by forcing content providers to open their standards to competition, will place demands on more bandwidth, forcing Internet network providers to do something, to recover the cost of constantly upgrading their networks. Mermigas says that if the past has told us anything about "walled gardens" and proprietary platforms, "their initial success can be limited." The digital future is all about choice, and soon these and other walls will come tumbling down like they have in the past. The way to distinguish yourself from competition will be pricing, packaging, services and content quality. Of course, opening DRM standards leads to another problem--piracy, which will need to be addressed--but the future of media will march toward its intended end nevertheless.

Read the whole story at The Hollywood Reporter »

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