Move Fast and Break Things

1. Digital Monopolies Are Destroying Creative Industries

Since 1995—the last time I produced a movie (To Die For)—the digital distribution of most popular forms of art has reinforced the popularity of a small group of artists and cast almost all others into shadow.

Value shift. The digital age has caused a massive reallocation of revenue, moving economic value from content creators (musicians, journalists, filmmakers) to the owners of monopoly platforms like Google, Amazon, and Facebook. While consumption of music, movies, and news remains high, the income for most artists has plummeted.
Dramatic revenue declines. Since the early 2000s, industries like recorded music and newspapers have seen revenues fall by 60-70%. For example:

• US recorded music revenue fell from $19.8 billion (2000) to $7.2 billion (2015).
• US newspaper advertising revenue fell from $65.8 billion (2000) to $23.6 billion (2014).
• Facebook alone "sucked well over $1 billion out of print advertising budgets for US newspapers" in 2016.
  Tech giants' growth. In contrast, Google's revenue grew from $1.5 billion (2003) to $74.5 billion (2015), becoming the largest media company globally by ad spend. This stark contrast highlights how value has been captured by platforms, not creators.

2. The Internet's Roots Were Decentralized and Countercultural

The revolution began in the moral precepts of the counterculture: decentralize control and harmonize people.

Counterculture origins. The earliest networks, like the WELL, grew directly from the 1960s counterculture, influenced by figures like Stewart Brand and Ken Kesey. They envisioned a "bottom-up" network that would empower individuals and overthrow political hierarchies.
Government funding. Ironically, the foundational technology of the Internet (ARPANET, hypertext, graphical interfaces) was developed by academics and researchers, often with government funding (DARPA), who believed in open access and sharing, not profit maximization or centralized control.
Empowering individuals. Pioneers like Doug Engelbart saw the computer as a tool to "augment—not replace—human capability," enabling users to access knowledge, create content, and share it freely. This vision contrasted sharply with later models focused on surveillance and control.

3. Radical Libertarian Ideology Fueled Tech's Monopoly Power

By the late 1980s... the dominant philosophy of Silicon Valley would be based far more heavily on the radical libertarian ideology of Ayn Rand than the commune-based principles of Ken Kesey and Stewart Brand.

Shift in philosophy. A small group, notably influenced by Ayn Rand and Milton Friedman, rejected the Internet's decentralized, democratic ideals. Figures like Peter Thiel openly stated, "I no longer believe that freedom and democracy are compatible."
Monopoly as a goal. This ideology promotes the idea that government is wrong and the market is always right, leading to the belief that building monopolies is the best way to create and capture lasting value. Thiel explicitly advises, "look to build a monopoly."
"Makers and takers". This worldview often divides society into productive "makers" (entrepreneurs, scientists) and dependent "takers" (the public, welfare recipients), viewing government regulation and social safety nets as impediments to progress and individual liberty.

4. Tech Giants Benefit from Regulatory Capture and Weak Laws

But the antiregulatory religion pushed by libertarian think tanks since the Reagan era has gutted antitrust enforcement efforts in both Republican and Democratic administrations.

Lax enforcement. Tech monopolies like Google, Amazon, and Facebook have grown to unprecedented size and market dominance largely unchecked by antitrust laws, which have been weakened by decades of focus on "consumer welfare" (lower prices) rather than market concentration.
Regulatory capture. Google, in particular, has mastered "regulatory capture," embedding former employees in key government agencies (FTC, FCC, Justice Department) and spending millions on lobbying to ensure favorable policies and avoid prosecution.
Tax avoidance. Tech giants also aggressively avoid taxes through complex international accounting schemes, costing the US government billions annually. Amazon, for years, benefited from avoiding sales tax due to its lack of physical presence in many states, undermining local businesses.

5. Surveillance Marketing Commoditizes Content and Erodes Privacy

For them the difference between the supreme artistry of a Martin Scorsese short film and an amateur cat video lies only in the number of views that can be sold to advertisers.

Data as the product. The core business model of Google and Facebook is "surveillance marketing"—collecting vast amounts of personal data from users' searches, posts, and online activity to sell highly targeted advertising. If you're not paying, you are the product.
Content as commodity. In this model, all content, regardless of artistic merit or journalistic value, is treated as mere "click bait," a means to capture user attention and generate data for advertising. This devalues quality content creation.
Erosion of privacy. Users often unknowingly surrender intimate personal information. Companies like Google and Facebook push the boundaries of privacy, sometimes sharing data with government agencies (like the NSA's PRISM program), normalizing a lack of privacy as a trade-off for "free" services.

6. Piracy and the "Free" Culture Devastate Artists' Livelihoods

Before it was shut down, in July of 2001, Napster had seventy million registered users.

Copyright theft. Technologies like Napster, founded on the principle of free file sharing, initiated a massive decline in revenue for the music industry and other creative sectors by enabling widespread copyright infringement.
"Information wants to be free" myth. The libertarian-influenced idea that "information wants to be free" is a lie that benefits platforms and pirates, not creators. It ignores the significant fixed costs and labor involved in producing creative work.
DMCA safe harbor. The Digital Millennium Copyright Act (DMCA) "safe harbor" provisions, intended to protect online service providers, are exploited by platforms like YouTube and Twitter to avoid responsibility for hosting pirated or harmful content, shifting the burden of policing onto content owners.

7. Monopoly Power Increases Inequality and Threatens Jobs

Peter Orszag and Jason Furman, economic advisers to President Obama, have argued that the fortunes created by the digital revolution may have done more to increase economic inequality than almost any other factor.

Winner-takes-all economy. The digital age has exacerbated economic inequality, with a small number of tech billionaires accumulating vast wealth while wages for the average worker stagnate. This is linked to increasing market concentration across many sectors, not just tech.
Rent-seeking behavior. Dominant firms extract "rents"—profits beyond what competition would allow—from consumers and suppliers. Amazon, as a monopsonist (dominant buyer), forces down prices for authors and publishers, while Google and Facebook extract premium ad rates.
Job displacement. While tech creates some high-paying jobs, the sector employs a small percentage of the workforce. Automation, driven by AI and robots, threatens many existing jobs, potentially leading to widespread "technological unemployment" and social unrest if not addressed.

8. Social Media's Design Fosters Addiction and Divisiveness

The basic thesis of this very successful book is that in order to gain admission to the digital winner’s circle you need to get your customers addicted to your app.

Habit-forming products. Social networks are designed using psychological principles (like variable rewards) to be addictive, keeping users hooked and maximizing the time spent on the platform, which generates more data for advertising.
Anonymity and toxicity. The anonymity afforded by some platforms (like Twitter) shields users from consequences, fostering a "coliseum culture" of online harassment, racism, and misogyny, bringing out the worst in human behavior.
Echo chambers and polarization. Social media algorithms and user behavior (muting, unfollowing) create filter bubbles and echo chambers, limiting exposure to diverse viewpoints and contributing to political polarization and the spread of misinformation.

9. Concentrated Tech Power Undermines Democracy

The men who lead these monopolies believe in an oligarchy in which only the brightest and richest get to determine our future.

Influence on information. Platforms like Facebook and Google act as powerful filters for news and information, potentially influencing public opinion and election outcomes through algorithmic curation and the spread of fake news.
Political influence. Tech giants exert significant political power through lobbying, campaign contributions, and the revolving door between Silicon Valley and government, ensuring their interests are protected regardless of which party is in power.
Erosion of civic engagement. The addictive nature of social media and the trivialization of content can distract citizens from important political issues, contributing to declining civic engagement and voter turnout, fulfilling Huxley's vision of a trivial culture.

10. A Digital Renaissance Requires Challenging Monopolies

Like the historical Renaissance, this one will begin with acts of resistance against digital monopolies.

Need for resistance. Countering the negative impacts of digital monopolies requires active resistance from artists, journalists, citizens, and politicians to reclaim the Internet's original promise.
Re-decentralization. The inventor of the World Wide Web, Tim Berners-Lee, advocates for "re-decentralizing" the web to unleash innovation and prevent the concentration of power in a few platforms.
Alternative models. Exploring alternative models like producer co-ops (like Sunkist for farmers) could empower content creators to collectively bargain for fair compensation and control over distribution, bypassing monopolistic platforms.

11. Reforming Laws and Promoting Competition is Key

The DMCA “safe harbor” provisions that Google, YouTube, Twitter, and Facebook hide behind need to be changed, as Azoff suggests.

Modernizing laws. Laws governing the Internet, particularly copyright (DMCA) and antitrust, are outdated and need reform to address the realities of the digital age, including widespread piracy and the power of monopolies.
Strengthening antitrust. Antitrust enforcement should return to its historical goal of preventing excessive market concentration, not just focusing on short-term consumer prices. This could involve breaking up dominant firms or regulating them as public utilities.
Promoting broadband competition. Encouraging competition in broadband infrastructure, including supporting municipal networks, is crucial to ensure faster, cheaper Internet access and prevent monopolies in the digital pipeline.

12. Reclaiming Human Values in the Digital Age

What does it mean to be human in the age of digital addiction?

Beyond efficiency. The relentless pursuit of technological efficiency and profit maximization, often at the expense of human well-being, privacy, and creativity, needs to be re-evaluated.
Prioritizing empathy and art. Art and the humanities are crucial for fostering empathy, critical thinking, and a shared cultural understanding, serving as a necessary counterpoint to the commodification and trivialization of content online.
Conscious engagement. Citizens must become more aware of how digital platforms are designed to influence behavior and consume content critically, resisting the passive consumption and addiction that undermines individual autonomy and democratic participation.

Last updated: May 1, 2025