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94 N.Y.U. L. Rev. 1555 (2019)
The Second Digital Disruption: Streaming and the Dawn of Data-Driven Creativity

handle is hein.journals/nylr94 and id is 1581 raw text is: 











      THE SECOND DIGITAL DISRUPTION:
   STREAMING AND THE DAWN OF DATA-

                    DRIVEN CREATIVITY

          KAL RAUSTIALAt & CHRISTOPHER JON SPRIGMAN*

    This Article explores how the explosive growth of online streaming is transforming
    the market for creative content. Two decades ago, the popularization of the internet
    led to what we refer to here as the first digital disruption: Napster, file-sharing, and
    the re-ordering of numerous content industries, from music to film to news. The
    advent of mass streaming has led us to a second digital disruption, one driven by
    the ability of streaming platforms to harvest massive amounts of data about con-
    sumer preferences and consumption patterns. Coupled to powerful computing, the
    data that firms like Netflix, Spotify, and Apple collect allows those firms to know
    what consumers want in incredible detail. This knowledge has long shaped adver-
    tising; now it is beginning to shape the content streaming firms purchase or even
    produce, a phenomenon we call data-driven creativity. This Article explores these
    phenomena across a range of firms and content industries. In particular, we take a
    close look at the firm that is perhaps farthest along in its use of data-driven crea-
    tivity. We show how MindGeek, the little-known parent company of Pornhub and
    a leader in the market for adult entertainment, has leveraged streaming data not
    only to organize and suggest content to consumers but even to shape creative deci-
    sions. MindGeek is itself the product of the same forces the shift to digital distri-
    bution and the accompanying explosion of free content that transformed
    mainstream creative industries and paved the way for the rise of streaming. We first
    show how the adult industry adapted to the first digital disruption; that story aligns
    with similar accounts of how creative industries adapt to a loss of control over
    intellectual property. We then show how MindGeek and other streaming firms such

    f Professor, UCLA Law School & UCLA International Institute.
    * Professor, New York University School of Law and Co-Director, Engelberg Center
on Innovation Law and Policy. Note that this author has provided legal advice to Spotify.
All discussion in this article of Spotify and its business is based on publicly available infor-
mation and not on anything learned while serving as Spotify's counsel. The authors wish to
thank Feras Antoon, Kate Darling, Shira Tarrant, Colin Rowntree, Max Baptiste, Adam
Grayson, Brian Gross, Chauntelle Tibbels, Lina Misitzis, Kate Miller, and Kevin Moore for
insights into the adult entertainment industry. Thanks also to Amy Adler, Shyam
Balganesh, Jeanne Fromer, Brian Frye, Ethan Gurwitz, Viva Iemanja Harris, Scott
Hemphill, Matthew Sag, Pam Samuelson, Andrew Selbst, Michael Weinberg, Andrew
Keane Woods, Christopher Yoo, participants in workshops at the New York University
School of Law, at the University of Kentucky College of Law, at the 2018 Intellectual
Property Scholars Conference at Berkeley Law School, and at a conference at the
University of Pennsylvania Law School sponsored by the Center for Technology,
Innovation and Competition for helpful comments and conversations, and to Eugene
Volokh for inviting us to blog about this research on the Volokh Conspiracy. Please note
that our gratitude to those who have engaged with this project should not be taken to
suggest their endorsement of anything we have written here. A special thanks is due to
Stephen Gray, Ari Lipsitz, Omarr Rambert, and Tommy Tsao for excellent research assis-
tance, and to the Filomen D'Agostino and Max E. Greenberg Research Fund and the
University of California Faculty Senate for grants that supported this work. Copyright ©
2019 by Kal Raustiala & Christopher Jon Sprigman.

                                      1555


Imaged with Permission of N.Y.U. Law Review

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