-
Essay / How the press and music industry has changed...
The Internet has become more and more present in daily life. The expansion of social networks like Twitter or Facebook has revolutionized the way people interact with family and friends. The Internet has made communication and exchanges easier: we can now send an e-mail to the other side of the world in less than a second. The number of users is growing rapidly: the International Telecommunications Union estimates that more than 2.7 billion people have access to the Internet in 2013. These changes have not only affected privacy. The “Net” is becoming more and more important in the business world today: it is now used as a professional tool in almost all existing companies. Some businesses are even entirely Internet-based: they are commonly called “dot-com companies.” A new industry has also been created: the electronic commerce (or e-commerce) industry: the buying and selling of products (or services) takes place entirely on the Internet. McKinsey & Company, one of the world's most prestigious consulting firms, estimates that nearly $8 trillion was traded in 2011 through e-commerce. But the Internet hasn't just created new industries. For McKnight et al. (2001), the Internet has also led to a process of creative destruction (defined by Schumpeter in the 20th century as the destruction of existing technologies and production methods through innovation): "clearly defined industrial boundaries, barriers to entry and market positions within the industry. The telecommunications industry has been replaced, perhaps permanently, by blurred and fluid industry boundaries, rapidly evolving inter-company alliances, and the relentless introduction of cost-reducing product and process innovations. Indeed, the Internet has brought drastic changes to the world of paper. In the last section, we studied the effects of the Internet on the economic model of supply and demand, through a comparison with an e-commerce environment, and concluded that the costs for both consumers and businesses producers are reduced thanks to the Internet, while Information asymmetry is increasingly less likely to occur, thanks to the amount of information readily available on the 'Net. To conclude, I would say that the Internet has had a great impact on traditional industries, mainly positive for consumers and producers. Even if certain negative effects can be pointed out (such as piracy or the destruction of jobs in printing companies for example), we can assume that the current situation is the most favorable for everyone. However, the Internet is evolving rapidly and we are still at the beginning of this process: we can expect even more changes in the near future..