Richard,
The Noir Dude likes your magazine and decides to show all his friends, so he scans it and posts it on the internet - why should the people pay? they can read the free scan scanned copy - in fact he does it the following month as well and his friends tell their friends and so we now have a site called freebook where everybody can post all the scanned magazines which means people stop buying them in the shops - only 1 or 2 steps removed from what we are talking about here, so this is a genuine question - what are you doing in your industry to 'fit with the new commercial reality' - maybe we can learn from you.
Mike
The magzine and newspaper industry is a good parallel. It is my ex-industry now, as I was made redundant along with over 100 other people (about 30% of the workforce) as a direct result of the internet effectively doing exactly what you say. It has not been done in precisely the manner you outlined, but the result is the same.
Magazine sales have been savaged, particularly in the fairly specialised areas I used to work in, ie photo mags, motoring, motorcycling, amongst others (Emap plc as was, now Bauer Media). You can get that information and entertainment largely for free from websites just like this. You don't get a magazine of course, but with a mag what you are mostly paying for is a physical pile of paper and ink delivered to a physical shop or house. Internet sites operate to a completely different publishing model where all those print, production and delivery costs are pretty much reduced to zero.
What the magazine industry has had to do is dramatically rescale everything to the new order, where in very round numbers overall revenues have been cut in half. Simple as. And they're still falling. The transfer of magazines to internet sites simply doesn't work because in their current form websites cannot generate anything like enough revenue (advertising only) to sustain an editorial team.
I happen to believe that while old style printed magazines and newspapers might have had their day, the internet is also unsustaiable in its presently free-for-all form. The problem with 'free' is that anybody can do it, and seemingly everybody does. The result is a colossal mass of free information, but most of it is rubbish and finding those golden nuggets of valuable information is like finding a needle in a haystack.
Murdock is making the first serious push towards paid-for web content with The Times Online. It's pioneering work and he'll find it very tough but I ultimately believe that quality paid-for content on the web will win through. What I think it needs is a bit more technology in the form of things like the new iPad, coupled to new methods of micro-payment.
For example, you could access any media on your mobile iPad-style device and when you click on a page worth reading a micro-payment of 0.5p or something is instantly made and taken off your internet media subscription - just like sending a txt message really. Easy, instant, simple, painless, and compared to the cost of printed media, and absolute bargain. And this service would be availabe to billions of people internationally 24/7, not just in a few thousand newsagent shops up and down the UK. So those half pees would add up!
I think people would happily pay that for trusted and quality content from known premium brands and media suppliers, and at the end of the month you'd settle a bill for a tenner or something for all your media needs. That is workable from a business point of view, and would sit very well beside all the free stuff. It just needs a couple more steps in the evolutionary techno chain to make that possible and then the magazine world will be a great and flourishing industry once more.
Commercial photography needs to look at itself from the ground up in much the same way, and review what their business fundamentally is. And I would suggest it is first and foremost about the
creation of images - the actual taking of pictures. That's the unique and valuable service you can charge for, and trying to stop people copying and scanning and downloading stuff is not only futile, but actually misses the point.