The debate over legislation to stop online piracy revealed not only the threat that a new generation of consumers presents to the entertainment industry's traditional business model, but the equally shaky future of the way Congress currently conducts its business. The high tech, Internet-based companies that Hollywood most fears used their clout with America's most coveted customers, young Millennials, to stop a rush to pass the Stop Online Piracy Act (SOPA) in the House and its Senate twin, Protect Intellectual Property Act (PIPA).
The success of the Wikipedia-led Internet blackout demonstrated the way Congress goes about its business is as susceptible as the entertainment industry's business model is to disruption from the energy and attitudes of a new, digitally native generation, Millennials (born 1982-2003). The film and television industry's foundation, built on the notion that content will triumph ṻber alles, was shown to be just as prone to destruction by the Napster virus as its cousin in the recording industry was a decade ago. It turns out that consumers like companies that distribute content, such as Google, Facebook, and Amazon, more than they like the companies who produce and package the content and insist on being paid for it.
But the fact that many in Congress suddenly abandoned their support of SOPA or PIPA in the face of this consumer revolt also sent a clear warning to those pushing the bills, using traditional methods of high-priced lobbying and closed-door decision making, that their way of doing business is equally in jeopardy. Wikipedia's blackout Facebook page was liked or shared around 1.2 million times on the Wednesday that the site was unavailable to potential visitors. A petition organized by Google in opposition gained over seven million signatures. When Senator Marco Rubio (R-FL) announced on Facebook that he was withdrawing his support for PIPA, his action generated 4,700 likes. Between midnight and 4 p.m. on the day of the "blackout bomb", Twitter recorded over 2.4 million tweets on the subject. The Internet community's insistence on a more open decision making process forced the Congress to ultimately abandon its confrontational, large-contributor approach to the problem. If Congress actually learns a larger lesson from this experience and adopts a process that incorporates the Millennial Generation's desire for win-win solutions derived from bottom up participation designed to forge a consensus, it might finally reverse the continuing decline in popularity with their customers -- the American electorate.
Today, all national surveys show approval of Congress at historically low levels. Since the Republic was conceived, communication technologies have evolved to reduce the time and distance that separate Congress from the public, but most of Congress's procedures and practices have remained trapped in a time warp of its own traditions. Creating a new connection between citizens and their representatives by using Millennials' favorite technologies to build a more transparent, open and participatory legislative process is the essential first step in reversing this decline in Congress's credibility
This alternative approach to the legislative process was actually utilized by Democrat Senator Ron Wyden (Oregon) and Republican U.S. Representative Darrell Issa (California) in drafting their alternative to SOPA/PIPA. The two lawmakers published a draft of their approach last year on the web at www.KeepTheWebOpen.com and asked for comments from interested parties. Based on the suggestions of those who visited the site, they proposed a bi-partisan alternative -- the Online Protection and Enforcement of Digital Trade Act, or OPEN Act -- that uses a scalpel instead of a sledgehammer to address the problem. It empowers the U.S. International Trade Commission to cut off the money supply of the several dozen foreign piracy sites that do most of the damage to content creators.
Although Internet companies and online activists liked both the process and the outcome, organizations such as the Motion Picture Association of America (MPAA) continued to insist that the danger presented by those sites to their business model is so great that they can't wait for the niceties of legalities and due process that the Wyden/Issa solution would involve. The fact that the entertainment industry's solution is perceived to be so threatening to the freedom of users of the Internet that it united libertarians on both the left and right in opposition to SOPA/PIPA has not dissuaded those wedded to the old ways of doing business in Congress that they need to change their tactics. Their stubbornness is reminiscent of the attempt by the Recording Industry Association of America (RIAA) to halt the proliferation of peer-to-peer music sharing sites by suing its teenage customers, before RIAA finally gave up and acquiesced in a new business model for the industry built around Apple's iPod.
It's time for Congressional leaders to use the learning experience of the SOPA/PIPA debate to throw off their generational blinders and find a way to concede power gracefully to a new generation with new ideas. To restore its credibility, Congress will have to use new tools to fully involve Millennials and older generations in the decision-making process. It should make a new bargain with the American people, built on an increased level of citizen participation in the process of governing, rather than upon the current trade of access and constituency service in return for campaign contributions.
Only when Congress embraces this new way of doing business will the legitimacy of the country's legislative process begin to be restored and Congress's approval ratings start to rise again. Until then the electoral fate of Senators and U.S. Representatives will be as uncertain and as subject to disruption as the future of the entertainment moguls they sought to please by backing SOPA/PIPA.
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As for the RIAA & MPAA, it's about time they decided to buck up & seriously compete in the digital download/streaming market. Every time a new technology comes out, they fight it. They fought cassettes, digital tape, CDs, DVDs, blank media & recorders, and they've been fighting the Internet for over a decade now. If it were up to them, we'd be stuck in the '50s in terms of entertainment distribution. Maybe they should quantify how much time & money they spend on the fight, & figure out if instead, it's worth their time to make changes to their business models. They no longer take risks on new/different artists/movies. They haven't made a serious effort to provide affordable digital content in a timely manner that fairly compensates actual content creators. Why in the world does a digital download of a music album cost just as much or more as a CD on so many websites? It costs far less to provide digital downloads than physical products. If I acted like the MPAA & RIAA at work or during my studies, I'd have failed at everything. They also need to think about what people can & cannot afford to pay during harsh economic times such as these. Piracy is wrong, but the MPAA & RIAA's
The media industrial complex will have to learn that there is no way to stop piracy. It can't be done. The best they can hope for is to produce a product people are willing to pay for. I still hear artists complaining about Itunes and how little they are paid for their work. You produce a product once and it can be sold forever. How much do you they think a few hours of work should be worth?
Youtube: http://www.youtube.com/watch?v=92I0hrYvdjI
Vimeo: http://vimeo.com/35405496