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Power Laws, and the Dagger in the Heart of the Recording IndustryGreat analysis on Due Diligence of what the real threat to the recording industry.  Several themes pop up — channels, radical marketers, the efficiency of the internet.  The entire analysis could equally be applied to Microsoft and it’s position in the software industry during the 1990’s.  Much of what we did in then was create hit software, and pump it out through ever expanding distribution channels.  Does anyone remember the MS-DOS 6.2 Upgrade for Dummmies?  It was a repackaging of MS-DOS 6.2 and the DOS for Dummies book designed to be sold through bookstores.  We theorized that we could add several thousand retail outlets to our channel by coopting bookstores into the computer industry.  We tried the same with rack jobbers in department stores, and even talked about wild ideas like software sold through gas stations and grocers.  It was all about developing an efficient, proprietary channel, and exploiting it to the maximum potential… and then the Internet came along.  

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