With PM, there is the division of labor, and the rewards are distributed via formal and informal compensation. With individualized information, a worker's efforts drive revenue, so the workers' efforts get more reward as the reward (the value that people will give for the information as measured by whatever they are willing to pay for it in exchange) of the data will be higher. It happens that the value people will give for free information (can be thought of as the marginal utility of the information, or how useful the information is to the individual) is greater than the value people are forced to pay for it, hence, the information should be free. (For example, you pay your ISP to get to websites. Now, if a person wasn't paying your ISP, they could just as easily go directly to the website, and getting the info from you is worth more than if they just go to the website. So you decide to charge. Now profit is making the bulk of your income off one person's transaction, so you need to raise your prices to keep yourself profitable)
The boggling amount of loss in the information sector over time may be related to a large part of the problem being that this was an attempt to replicate an existing business model by doing the same thing as another-by imposing a cost structure that produces the same results, a lo-fi leap of faith. Less than a decade later, everyone is just trying to leverage an already-existing way of doing things, and now, in a high-stakes environment. Much as with the mortgage industry, the fractionalization of what was once a massive industry is creating a huge pile of cash in the hands of the minnows. The benefit part of the value chain can and has already been'squished'.
The dividends of that are immense. The labor involved in creating the information value is shifting from the people who are creating it to those disposing of it, thus focusing manufacturing and distributing resources on value lower trees and goods and away from value creation. That is creating a bad scenario for the stability of the economy as a whole. We already see it in the distribution of wealth. d2c66b5586