Watch Out Hollywood!

The entertainment industry's real threat isn't piracy, it's backyard Spielbergs armed with digital moviemaking gear. "According to analyst Chris Chute of IDC, a market research firm, sales of camcorders and editing software have exploded: 4.7 million digital camcorders were sold in the United States in 2004, and 11 million units were sold worldwide. The latest trend is toward high-definition cameras. Sony's HDR-FX1, which sells for $3700, is as popular with pros as it is with amateurs.

It's the death of a thousand cuts for the entertainment industry, and it's showing in slumping big-label music sales and this year's dismal box office returns. What's more, the amateurs are in it as much for fun as for money. Tech guru Jonathan Peterson says the problem is that the Big Media companies still see audiences strictly as consumers. They don't realize that many members of their audience want to create as well as consume.

Under Grokster, sites that are promoted purely as ways for people to share their own work are safe; it's sites that are promoted as carrying pirated works that are vulnerable. I think this will encourage the growth of truly independent Internet distribution. And it is happening just as the technology gets good enough to support the big files needed for movies. Amazon.com is getting involved by streaming short films and by acquiring DVD-on-demand manufacturer CustomFlix. Then there's AtomFilms.com, ifilm.com and thelonelyisland.com, all of which distribute films directly, online." This article is more of utopian than I personally experienced, but there's no question that there are more options and choices for creative minds and inquistive audiences who long for more than standard mainstream fair. The real question is this: show me the money. Where's the business model/infrastructure beyond showcasing your stuff for free? Recent iTune Video library is a strong contender. Judging from the online porn industry, oh yes, there won't be a blockbuster, but you will make a living out of it.

The biggest change is that it became much easier for good stories to find its audience. It's the best any storyteller can hope for, besides making a living out of it.