The real story in nonphysical goods is one of deflation. Value in once-scarce — well, once-controlled — commodities like news, information, and advertising decline as the internet explodes creation and competition. The internet also destroys the ability of many to control distribution and thus value. But at the same time, the internet drastically increases efficiency thanks to platforms and open distribution and the ability — no, the need — to specialize and collaborate. The bottom line in many of these enterprises — as we tried to show in our New Business Models for News — is that they may be profitable, only smaller. Both sides of the ledger deflate.
This is why the old controllers of scarcity have such trouble rethinking and remaking themselves for the economy of abundance. Their reflex is to control more, when that only decreases value.
So stop selling scarcity. Scarcity has no value. Results and efficiency do.
