CHAIN REACTIONS
End of an era, this bit of news from Microsoft:
"Microsoft's years-long-running multimedia CD-based encyclopedia product, Encarta, will be history by the end of the year. According to Ars Technica, Microsoft quietly announced the discontinuation date for Encarta to be October 31, 2009. Although the MSN press release doesn't go into too much detail on all the reasons why this decision was made, (nothing about Wikipedia
for example), they do mention that the way people look for and consume
information has changed substantially in the last few years, which
seems like a fair assessment.
It appears that all
Encarta properties will be phased out over the coming year. They will
stop selling the retail and student versions by June and the online MSN
Explorer content will be removed by the end of October. Customers
paying for a subscription to Encarta Premium will receive a pro-rated
refund around the middle of the year. Technical support, like with most
other Microsoft products, will continue for three years after the
official end of life.
As we mentioned, although Microsoft doesn't directly implicate
Wikipedia as one of the harbingers of their decision to kill Encarta,
we can only assume that it is a big part of that decision. Although
Encarta's content was carefully curated, and of course factually
accurate (which is often more than what you can say about Wikipedia),
apparently the cost and availability of instant sources of information
online has overcome the appeal of this once-novel encyclopedia."
It's a bit ironic though, since not too long ago, the world of encylopedias almost saw the end of another era, as this piece from Capitalism Magazine recalls from 2000:
"In 1768, three Scottish printers began publishing an integrated
compendium of knowledge -- the earliest and most famous encyclopedia in
the English-speaking world. They called it Encyclopedia Britannica. Since then, Britannica
has evolved through fifteen editions, and to this day it is generally
regarded as the world's most comprehensive and authoritative
encyclopedia.
In 1920, Sears, Roebuck and Company, an American mail-order
retailer, acquired Britannica and moved its headquarters from Edinburgh
to Chicago..."
"By 1990, sales of Britannica's multivolume sets had reached
an all-time peak of about $650 million. Dominant market share, steady
if unspectacular growth, generous margins, and a two-hundred-year
history all testified to an extraordinarily compelling and stable
brand. Since 1990, however, sales of Britannica, and of all printed encyclopedias in the United States, have collapsed by over 80 percent. Britannica was blown away by a product of the late-twentieth-century information revolution: the CD-ROM.
The CD-ROM came from nowhere and destroyed the printed encyclopedia business. Whereas Britannica
sells for $1,500 to $2,200 per set (depending on the quality of the
binding), CD-ROM encyclopedias, such as Encarta, Grolier, and Compton,
list for $50 to $70. But hardly anybody pays even that: the vast
majority of copies are given away to promote the sale of computers and
peripherals. With a marginal manufacturing cost of $1.50 per copy, the
CD-ROM as freebie makes good economic sense. The marginal cost of Britannica, in contrast, is about $250 for production plus about $500 to $600 for the salesperson's commission."
So what the CD-ROM did to print encylopedias, the web did to CD-ROM tomes of knowledge. At each juncture, the business models that ruled rapidly disintegrated, and new ones took their place...or not.
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