The Destruction of Creative Industries in the Digital Age

The rise of the internet has led to the widespread destruction of traditional creative industries, including journalism, music, and publishing. While proponents of the digital revolution often celebrate this as a form of "creative destruction," the reality is that the value that was once captured by these industries has not been replaced, but rather transferred to a small number of large technology companies.

The Case of Journalism

The advertising-based business model that supported journalism for decades has been decimated by the rise of Google and Facebook, who now capture the vast majority of online advertising revenue. This has led to a crisis in the newspaper industry, with widespread layoffs and a decline in the quality and availability of local news.

The Case of the Music Industry

As discussed in The Devaluation of Music in the Digital Age, the music industry has been similarly upended. The shift from physical sales to streaming has resulted in a massive transfer of wealth from artists and record labels to streaming platforms and their parent companies.

This pattern of value extraction, rather than value creation, is a recurring theme in the digital economy. While consumers may benefit from lower prices and greater convenience, the long-term consequences for the creative arts and the professionals who work in them are dire.

The Great Disruption
The Centralization of the Internet and its Impact on Creative Arts