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For consumers, a cheaper distribution system can't come soon enough.
In fact, the whole chain of wholesalers in the second case may result in a cheaper distribution margin than in the first--whatever the first wholesaler buys from you may make it all the way to the customer for only $1.30 or so, each level only requiring a 7% margin.
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But it also wants to establish itself as a cheap distribution channel for promotional material, such as movie trailers.
Now TV, part of the Murdoch empire, provides a cheap distribution network via local internet service providers.
For one, broadcasters and publishers now have a far cheaper distribution system.
The most obvious gains come from cutting out shopfront costs and intermediaries, and from cheaper distribution.
The shift to bits promised more than just faster and cheaper distribution of the same old information and entertainment.
Although large retailers will own a lot of detailed information, many of the expensive assets they have built up may become obsolete especially as cheaper distribution channels such as the Internet gain ground.
And in France there was a national newspaper strike in April over the sale of the company that owns France-Soir, once Paris's top-selling paper, for one franc.When the Internet first engaged the attention of the newspaper industry, it looked like a new, cheap distribution medium.
For instance, easyJet, a successful British low-cost carrier, now sells 90% of its seats through its own site.Hotels are also discovering that the web can be a powerful and cheap distribution channel, and not just an online brochure.
If the remedy is a public good, as is the case in fighting a communicable disease, the value of widespread treatment will make cheap distribution a good idea.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com