03.12.2001 - Keynote Address
Michael Hirschorn
This morning Michael Hirschorn, former editor of SPIN
magazine, discussed his view of the direction of the Internet and audio and video content.
After being fired from SPIN magazine, he started Inside.com using his knowledge and
experience from the arts & entertainment magazine industry.
He believes that with the recent FCC approval of new
encoding for copyright protection of digital content, we will see the growth of
proprietary devices and subscription sites. With these devices, businesses can control the
distribution of their material more completely. He believes that all but the most
determined hackers and tech-heads will be the only ones able (or willing) to go through
the trouble required to share music and video files illegally.
His perception is that this will fundamentally change the
nature and culture of the Internet. We will have to choose the sites and portals for our
entertainment content carefully because it will require real fees and subscriptions. As
profitability and cash flow business models start to influence the development of Internet
business, we will see this trend accelerate.
When asked about his business model, he was candid and said
he used a very traditional plan of advertising and subscriptions to create his economic
model. His content model appeared to be developed from traditional roles of investigative
editorial reporting.
He apologized for his somewhat pessimistic view of Internet
growth, but that he just called them as he saw them.
Rick McCauley
