27 Feb 2011
The scenario under which the cable and telcos are the only survivors of the digital media wars who maintain their current profitability has been called “The Dumb Pipe Paradox.” In fact, there’s nothing paradoxical about it. Media shareholders seem to have a deep psychological need to believe that they will be rewarded for backing the right creative visionaries rather than dumb pipes. But about the only sure thing in the creativity business is that the visionaries are smart enough to keep as much of the value of what they create for themselves as the market will bear, leaving little for the shareholders. The retail end of the media business where the dumb pipe sits has always been the most resilient in the face of changes in technology and consumer demand. In between the content creation and the local distribution remain the aggregators who must continue to up their game if they are to stay ahead of the digital onslaught.
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Preface to the new paperback edition of The Curse of the Mogul, by Columbia Business School Professors Jonathan Knee and Bruce Greenwald.






