Of Free Markets And Competition In The Recording Industry
from the does-it-exist dept
The folks at Cato have put out a new report on copy protection and file sharing, suggesting that competition will take care of all of the problems. Ed Felten quickly responds by pointing out this only makes sense if the industry is really competitive and suggesting that the launch of MP3Tunes might be a good test case. If the market is truly competitive, Felten argues, then the labels will license content to MP3Tunes in an un-copy protected format. After all, all of their tracks are already available as MP3s on file sharing systems, so there’s no reasonable argument that they lose anything by doing so. All they really do is offer customers more choice. However, since the industry appears to act more like an oligopoly, then it’s less likely they’ll agree to do this. Felten follows this up with another post, noting that competition doesn’t seem to be driving interoperability in copy protection, and wonders why the Cato report doesn’t seem to actually delve into the questions that are the logical next step of the points they make.