Saturday, March 14, 2009

Thinking the Unthinkable: Telcos Have Done Better than Publishers

Over the course of some years I have on occasion used the airline analogy to look at structural issues faced by telecom service providers. Both are capital-intensive industries with huge economies of scale, multiple customer segments, important regulatory backdrop, and similar market entry and incumbent response patterns.

At other times I have used the analogy of how Internet Protocol is changing the telecom business to describe what is happening in the print media business, arguing that the underlying business impact is similar in both industries.

Neither the print nor the airline industries have performed as well as the telecom industry in coping with dramatic change.

Clay Shirkey's article is a provocative but largely accurate assessment of why print publishers--newspapers in this case--have failed to adapt as rapidly as telecom providers have.

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