One of the central themes of this blog is that Internet has changed many things by allowing the distribution of digital objects for virtually no cost. This has enormous knock-on consequences: the software industry is where that is most evident, but content is being hugely affected too.
I tend to write analogically, drawing on my knowledge of free software (which goes back about 13 years now) to try to understand what is happening - and will happen - in other fields. An alternative approach is to look at this from the viewpoint of economic theory.
This is something that I am hugely unqualified to do, but fortunately Techdirt's Mike Marsnick has being doing an excellent job in this respect with a series of posts examining the economics of goods when scarcity is removed. He has now posted a summary to this series, together with consolidated links to the previous posts.
It's well worth reading, as are the comments on the above post - if only to see a fine display of people's misunderstanding of what's going on here. I was also pleased to see that the main example he uses - that of the recording industry, and how it can give away music and still make money from things like concerts, merchanise etc. - is precisely the one that I have been pointing to.
I hope that Mike turns all this into a book one day, since I, for one, would welcome and even more in-depth analysis of this important and fascinating area.