iTunes is a good example. The music industry itself is a fantastic example.
Their 'product' in the end is nothing more than bits in a computer. Stream of 1s and 0s. Yet they were charging $15 to $20 to buy a CD with those bits on it, despite very little of that money going to the musicians. Most of that money went to the label and the distribution network. When Napster came out, it was a complete end-around of everything the music industry was doing - an automated distribution network of 1s and 0s, and the entire industry was gutted. Most musicians weren't really impacted, in fact the revolution led to a lot easier ways for new and upcoming artists to get distributed without having to bow to the labels to get picked up, but a few big name artists took it on the chin, and all the rich record execs took it on the chin. So they passed RIAA, had the government start arresting teenagers, etc etc. And in the end, they still didn't ever get their profit stream back, because the 'new economy' gutted their old way of doing business.
So what artists do now, is distribute their music for cheap through iTunes, or cheaper through Spotify on a subscription service, and Apple farms a little off the top, or Spotify pays the artist by the play, and the big labels are less and less important, because the artist is only one step away from the listener.
Well it turns out, engineering design is also a bunch of 1s and 0s. Some kinds of engineering design will also go the way of the music industry. Yes, somebody somewhere designed a tail light cover, and that tail light cover is IP, that's owned by some big company, with corporate executives, and offices, and overhead, and all these sorts of things that have been interposed between the design engineer in his cubicle and the end-user buying the tail light cover at NAPA. But an independent engineer in a 1 man shop could also design a tail light cover in his pajamas on a saturday morning in his home office, and he could put his design up on iDesigns, or on Engineerify, and get a dollar for every time someone downloads his design. And Tail Light Cover Inc. will go the same way as Tower Records.
That's what I mean when I say "welcome to the new economy."
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