I have been thinking on this topic for a while but I think that Mark Pesce says it best.
Hey, Hollywood! Can you feel the future slipping through your fingers? Do you understand how badly you've screwed up? You took a perfectly serviceable situation - a nice, centralized system for the distribution of media, and, through your own greed and shortsightedness, are giving birth to a system of digital distribution that you'll never, ever be able to defeat. In your avarice and arrogance you ignored the obvious: you should have cut a deal with SuprNova.org.
In partnership you could have found a way to manage the disruptive change that's already well underway. Instead, you have repeated the mistakes made by the recording industry, chapter and verse. And thus you have spelled your own doom.
It's said that the best sequels are just like the original, only bigger and louder. Ladies and gentlemen, prepare yourselves for one hell of a crash. This baby is now fully out of control.
20 December 2004
Released under the Creative Commons Attribution License 2.0
The complete article can be found here.