Elon University

Chapter 6: The Bit Business

The distribution of atoms is far more complex than bits and requires the force of an enormous company. Moving bits, by contrast, is far simpler and, in principle, precludes the need for these giant corporations. Almost. It was through The New York Times that I came to know and enjoy the writing of the computer and communications business reporter, John Markoff. Without The New York Times, I would never have known of his work. However, now that I do, it would be far easier for me to have an automatic method to collect any new story Markoff writes and drop it into my personalized newspaper or suggested-reading file. I would probably be willing to pay Markoff the proverbial “two cents” for each of his stories … Once somebody is established, the added value of a distributor is less and less in a digital world.

Chapter 6: The Bit Business

Maybe the bandwidth should be free, and we buy movies, long-distance health monitoring, and documents because of their value, not the channel’s. It would be unconscionable to think of buying toys based on the number of atoms in them. It is time to understand what bits and atoms mean.

Chapter 4: The Bit Police

Nobody has a clear idea who pays for what on the Internet, but it appears to be free to most users. Even if this changes in the future and some rational economic model is laid on top of the Internet, it may cost a penny or two to distribute a million bits to a million people. It certainly will not cost anything like postage or FedEx rates, which are based on moving atoms.

Chapter 4: The Bit Police

In the digital world it is not just a matter of copying being easier and copies more faithful. We will see a new kind of fraud, which may not be fraud at all. When I read something on the Internet and, like a clipping from a newspaper, wish to send it to somebody else or to a mailing list of people, this seems harmless. But, with less than a dozen keystrokes, I could redeliver the media to literally thousands of people all over the planet (unlike a newspaper clipping). Clipping bits is very different than clipping atoms.

Chapter 4: The Bit Police

Media barons of today will be grasping to hold onto their centralized empires tomorrow. I am convinced that by the year 2005 Americans will spend more hours on the Internet (or whatever it is called) than watching network television. The combined forces of technology and human nature will ultimately take a stronger hand in plurality than any laws Congress can invent. But in case I’m wrong in the long term and for the transition period in the short term, the FCC had better find some imaginative scheme to replace industrial-age cross-ownership laws with incentives and guidelines for being digital.