What you call “mechanical socialism” is what economists call “bundling” and “cross-subsidization.” The higher-demand or higher-profit good makes the less-demanded or less-profitable one possible, because they have to be (or tend to be) purchased together. Digitization and e-commerce seem to have had this unbundling effect in a lot of con…
What you call “mechanical socialism” is what economists call “bundling” and “cross-subsidization.” The higher-demand or higher-profit good makes the less-demanded or less-profitable one possible, because they have to be (or tend to be) purchased together. Digitization and e-commerce seem to have had this unbundling effect in a lot of contexts (cable channels, “loss leaders” in grocery stores, etc.). Calling it socialism evokes “supported by the government,” which is not really what you mean, here. Though, ironically, that may be one path to better supporting the arts in the digital age…
Bundling may have been a better term. Interestingly this space has been and continues to be highly regulated by the government. Since 1908, the physical mechanical royalty rate has been set by the government rather than the market. Since the music modernization act in 2018, the mechanical system for streaming has also been controlled by the government. So in one sense it is completely government controlled.
What you call “mechanical socialism” is what economists call “bundling” and “cross-subsidization.” The higher-demand or higher-profit good makes the less-demanded or less-profitable one possible, because they have to be (or tend to be) purchased together. Digitization and e-commerce seem to have had this unbundling effect in a lot of contexts (cable channels, “loss leaders” in grocery stores, etc.). Calling it socialism evokes “supported by the government,” which is not really what you mean, here. Though, ironically, that may be one path to better supporting the arts in the digital age…
Bundling may have been a better term. Interestingly this space has been and continues to be highly regulated by the government. Since 1908, the physical mechanical royalty rate has been set by the government rather than the market. Since the music modernization act in 2018, the mechanical system for streaming has also been controlled by the government. So in one sense it is completely government controlled.
Joel Waldfogel does great, careful economics research focused on the music industry, if you want to check his work out.
I’ve actual read his book digital renaissance which is quite good