As with most things, the Internet has made the distribution of products cheaper and easier. For most industries this is seen as a blessing; however, the ability to cheaply and quickly distribute products has taken its toll on a some industries--particularly the music and movie industries. Prior to the Digital Revolution and the Internet, music labels and movie studios had complete control of distribution, and thus had control over price. The Internet has quickly shattered this business model. Now anyone with a CD/DVD drive and an Internet connection can be a distributor and can offer the same product at often much lower prices, if not for completely free. The once almighty music labels and movie studios are now at the mercy of the masses. Even musicians and movie producers are no longer dependent on labels and studios to distribute their products.
Take for example musician/producer Derek Smith (aka Pretty Lights). Smith started out making and releasing tracks for free online in the early 2000s. He was quickly "discovered" by some big name acts and began booking shows across the country. As of this past year he has booked the largest independent artist tour ever and is headlining some of the largest music festivals in the country, all without selling a single one of his albums or signing with a record label. Smith is a prime example of how drastically the Internet has shifted power away from the traditional gatekeepers and into the hands of individuals. He is also establishing a new model for the future music industry.
While the movie industry hasn't been affected quite as drastically, parallels are starting to emerge. The movie industry still has more control over their distribution, but as technology continues to advance this control may continue to drop. Paranormal Activity is a good example. Homemade and produced on a very low budget, the only thing preventing the producer from distributing it himself is the fact movie theaters still must negotiate contracts with movie studios. Soon this may be obsolete as more and more televisions are connected directly to the Internet. It is not hard to imagine a day when individuals will be able to produce and distribute their own movies, for their own prices, directly to consumers' television sets. Theaters will ni longer be the soul source for new movies, and may eventually only show movies that are demanded by the audience, not sold to them by studios.
