In fact, selling cars will be an archaic concept in 20 years, said economist Jeremy Rifkin. Instead, automotive companies will retain full ownership of all their vehicles, opting instead for leasing agreements which yield far higher customer retention rates. An entirely new economic system, said Rifkin, the president of the Washington-based Foundation on Economic Trends, in his January Series address last Thursday. Rifkin's speech was striking even for the January Series, which although known for its annual lineup of provocative speakers, has seldom brought forth such a dramatic look at the changes taking place in modern life. It stays in the hands of the producers.
Businesses already are well along the way toward the transition from ownership to access.
This is the age where General Motors, with its huge physical resources, is in worse stead than Nike, which outsources manufacturing operations and owns little more than intellectual property and design studios. And Nike is the model the business world wants to emulate. These changes in business practice will force dramatic change upon society. Already, said Rifkin, the top fifth of the world's population has shifted from a paradigm of ownership to one of experience. Under this model, a consumer can purchase a one-month pass to experience all of the music and films owned by a company instead of purchasing the CD or video.