upon a time,
but content‘s value today is being driven towards zero.
In the eyes of consumers, content is becoming a commodity
more of acommoner than a king.In contrast, consider Silicon Valley. Like Los Angeles, thisre
gion is, in the terminology of economic geography, a ―cluster‖—
thatis, an area with a concentration of one industry.
This particularregion is, of course, the preeminent home of Internet and computertechnology, including Web 2.0
distribution and search technologiesof
fered by YouTube, IMDb, Apple‘s iTunes, Facebook, Twitter, Google,
and the like. Many of these companies are thriving (or at least theywere prior to the recent economic turmoil). Distribution used to be theexclusive province of Hollywood
movie theaters, television networks,home video, among others
but no longer. Instead, NorthernCalifornia is the locus
of many of the new distribution technologies,and the ascendancy of those technologies has come at the expense of content.Naturally, no one can ignore the effects of the greater economiccrisis on both the content and technology industries. Today, credit isdifficult or impossible to obtain and equity capital is equally scarce.These phenomena affect both content and technology. Consumerspending on electronics and appliances dropped 27 percent for the
note 1 (―Content may no longer be king in the entertainmentbusiness, as distribution giants Apple and Google seem to prove again and again.‖) (quoting
Lehman Brothers analyst Anthony DiClemente).
. Chris Anderson,
Free! Why $0.00 Is the Future of Business
, Feb. 25,2008, http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all.
. Harvard Business School, Institute for Strategy and Competitiveness,http://www.isc.hbs.edu/econ-clusters.htm (last visited Mar. 26, 2009).
―Web 2.0‖ is a term used to refer to social networking sites, video sharing sites,
wikis, blogs, and other sites and services that emphasize creation and sharing of user-generated content, as opposed to a one-way transmission of professional content.
What Is Web 2.0: Design Patterns and Business Models for the Next Generation of Software
Sept. 30, 2005, http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html (last visited Mar. 26, 2009).
. Los Angeles is not without new media companies, of course, so the contrastbetween Northern and Southern California is not absolute. Nor, for that matter, are motionpicture companies completely absent from the Bay Area, with Lucasfilm and Pixar beingthe most prominent examples.
Lucasfilm, http://www.lucasfilm.com/inside/faq/ (lastvisited Mar. 26, 2009) (item #1) (specifying address in San Francisco); Pixar,http://www.pixar.com/companyinfo/about_us/contactus.html (last visited Mar. 26, 2009)(specifying address in San Francisco Bay Area city of Emeryville, California). Nonetheless,venture capital activity in Los Angeles is about one-tenth of that of Silicon Valley.
Seattle Venture-Capital Activity Is Among the Fastest Growing
, Mar. 11, 2008, http://seattletimes.nwsource.com/html/businesstechnology/2004273736_venturecapital110.html (noting a difference of $1.1 billion in financing versus$10.4 billion in 2007). Thus, the respective concentrations of content in Los Angeles andtechnology in the Bay Area, and the relative absence of the reverse, are great enough thatthe geographic implications are significant.