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A writer can die three kinds of death: natural death, painfu......

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My brother had some clever men among his friends whose writings added to the success of the newspaper. These gentlemen often visited us. Hearing their conversation, and their accounts of the approval their articles had received, I became excited and decided to write a piece of my own. But still being a boy, and suspecting that my brother would object to printing anything of mine, I wrote an article and left it unsigned. At night, I put it under the door of the printing house. It was found in the morning, and shown to his writing friends when they came to visit. They read it and gave their opinions. I had the wonderful pleasure of finding it met with their approval, and that, in their different guesses as to the author, they named men of learning and imagination. I suppose now that I was lucky in my judges, and that perhaps my writings were not as good as I then thought.
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When the leaders of media, telecommunications, IT and Internet companies congregate, as they did recently in Davos, the talk is upbeat about new accomplishments but subdued about recent ordeals: the dotcom bubble; the telecoms crash; the music industry bust; the advertising downturn; the e-publishing revenue stagnation; the PC slowdown; the wireless saturation; the semiconductor slump; the newspaper recession; the R&D retrenchment. And the question is, why do these predicaments sweep over the information sector so regularly The prevalence of these problems points to fundamental issues beyond a specific industry or short-term period. Instead, we need to recognize that the entire information sector—from music to newspapers to telecoms to Internet to semiconductors and anything in-between—has become subject to a gigantic market failure in slow motion. A market failure exists when market prices cannot reach a self-sustaining equilibrium. The market failure of the entire information sector is one of the fundamental trends of our time, with far-reaching long-term effects, and it is happening fight in front of our eyes. The basic structural reason for this problem is that information products are characterized by high fixed costs and low marginal costs. They are expensive to produce but cheap to reproduce and distribute, and therefore exhibit strong economies of scale with incentives to an over-supply. Second, more information products are continuously being offered to users. And information products and services are becoming more commodified , open, and competitive.
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