Is The Recording Industry Starting To Understand?

from the not-yet dept

Russell Buckley point us to a report from a recording industry gathering where the writer clearly understands what’s at stake to the industry, and that giving away music for free online actually opens up many, many more opportunities for them to actually sell something to users. This isn’t revolutionary. It’s what plenty of us have been saying for ages. All it takes is a basic understanding of economics to understand that competition is driving the price down to zero, but that just makes the music (which the recording industry mistakenly thinks is its “product”) a cheaper input into something else that they will sell. For now it’s the CD, but there are plenty of other options going forward. However, by making the music itself free, they expand their market and expand their opportunities. It’s good to at least find out that someone who has the ear of the recording industry has realized this. Of course, it doesn’t mean the industry will listen. Instead, it’s likely they’ll keep making backwards moves, trying to protect an obsolete business model, which will only make things worse.

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Comments on “Is The Recording Industry Starting To Understand?”

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dorpus says:

Abstract Luxuries

Why do people wear rocks on their fingers, paying thousands of dollars to do so? Because there is the power of tradition, the power of peer pressure. We can easily wear artificiale gem crystals for $5 a piece, whose crystal quality is higher than natural gems anyway, but that’s not why people wear them. Luxury items have no meaning in the natural world — the sellers of them merely create a mystique. People will climb over each other to get tickets for a musician perceived to be popular, because in this culture, we have been brainwashed since birth into believing that music is a “necessity”. It’s just so many noises, and maybe our minds will be more at peace without music?

Newob says:

Unfortunately not

No Mike. The Hits Industry’s, er I mean Recording Industry’s business model can last as long as America lasts. The entrenched recordings distributors own half of politicians already. They can buy their business model into law. And it won’t matter what makes more business sense. Capitalism with ideas doesn’t make business sense, yet it still goes on.

Bryan says:

CDs sound better

May be dicussing the business side, but I will talk about the sound side. CD’s has a better sound quality than MP3’s, and that is according to audio engineers. The odd thing I notice is that a record LP that has been taken care of even sounds better. It sounds more natural, also has better dynamic sound. I think the CD is a benefit for it lasts longer if it’s taken care of. I have no intrest for MP3.

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