by Mike Masnick

File Traders Moving Further Underground

from the pushing-them-down dept

This shouldn't be a surprise to, well, anyone, but the more the RIAA fights back against file sharing, the further underground file sharing goes. The latest efforts include building in more anonymity to file sharing services, and also designing systems to make it easier to figure out which files were legitimate, and which were fakes, viruses or spyware. This is only going to continue until the recording industry stops the current self-destructive campaign and realizes it's time to embrace file sharing and figure out ways to build real business models based on file sharing. Either that, or they can wait and let others do it for them - which is what appears to be happening.

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(Flattened / Threaded)

  1. identicon
    Ian R Scott, Jan 16th, 2004 @ 2:06pm

    Are you kidding?

    Do you honestly think that a large corporation is going to "embrace" file sharing? No! They are not going to embrace it because the public does not want to pay for something that it can get for free. A business model for file sharing? That doesn't make any sense. Would you pay $10 to borrow a CD from a friend? No, you wouldn't, because that isn't sharing, that is purchasing. To say that file sharing programs are becoming more anonymous for any other reason then to avoid prosecution is false. They are trying to get around loopholes in the legistation passed or proposed because of Napster, Morpheus, and all the other file sharing companies that have been prosecuted or are going to be. If you think digital media sharing is going to become commmonplace with any cooperation from big business is ignorant. Everyone involved (the artist, execs, consumers) are going to be hurt by either having to take a pay cut, lost jobs, or having to pay more for a legitimate copy of the music or movie. So who wins in this situation? The ignorant man that thinks getting a couple albums off the internet for free is fun. One man can't do any damage, but a couple million can. That is what the record companies are getting upset about.

    reply to this | link to this | view in thread ]

  2. icon
    Mike (profile), Jan 16th, 2004 @ 2:28pm

    Re: Are you kidding?

    No, I'm not kidding. We've discussed this plenty of times before, but I'm guessing you're new around here.

    The trick is to realize that music is a promotional item, not a good by itself. Once you realize that, plenty of business models fall into place for companies to embrace.

    If you want to promote something, what better way to promote it then to use something that (a) people want and (b) doesn't cost you anything? It's FREE ADVERTISING.

    The obvious question, then, is "for what?" Well... there's some evidence that file sharing does actually increase CD sales, but not everyone agrees with that. So, why not figure out something else. Already, some big stars are making more of their money through endorsements anyway... so maybe you use file sharing to make yourself popular enough to endorse Pepsi.

    Or, you use it to sell more concert tickets. Or get more people to join a fan club. Or sell more t-shirts. Or... whatever creative idea a smart business can come up with.

    The problem with people who say there's no possible business model surrounding free music is that they're missing the point. The music already IS free - and that's not going to go away. So, a smart business looks at that fact and tries to take advantage of it.

    Your recipe is one where an industry tries to keep its head in the sand and deny the market. You can try that, but you'll fail.

    reply to this | link to this | view in thread ]

  3. identicon
    PhuzzyLogic, Jan 16th, 2004 @ 2:42pm

    A Phuzzy brain bubble

    I still, to this day, find it very interesting.

    So in the view of the Digi-age, it could be stated as follows:

    I go to the store and buy a book, only to find out that I own the paper and backing, but not the ink that is on the pages.

    I go to the dealership to buy a car, I find that own the metal, plastic and rubber, but the steering wheel is on loan, you will have to pay a monthly fee to use that. (opps, my contract expired, guess I need to stop using the steering wheel... where did I put those vise-grips)

    I go to the grocery store and buy some food, only to find it is on lease.....I think I will leave this one clean, don't want Mike breaking out the Phuzz Buster.


    reply to this | link to this | view in thread ]

  4. identicon
    Anymouse, Jan 16th, 2004 @ 8:58pm

    Re: A Phuzzy brain bubble

    How come more people do not read (and post comments on) what's up with that?

    reply to this | link to this | view in thread ]

  5. identicon
    MuzicLover, Jan 17th, 2004 @ 7:27am

    Re: Are you kidding?

    As far as going underground and being anonymous, I've just starting using rippers.  Can get over 2000 songs in a day with this one.  And no way to really track it, from what I can see...

    reply to this | link to this | view in thread ]

  6. identicon
    Indie Anna, Jan 18th, 2004 @ 5:17am

    Re: Are you kidding?

    Music is a promotional item and not a good in itself? Tell that to the artist or the investor!

    Yes record companies have to change their business models and get more share of the artist revenue not just record sales but you will never make the equivalent from sponsorship, advertising etc, ergo reduced investment, reduced filtering, reduced promotion.

    Thanks, but I don't want my music driven by revenues from Coca Cola and Pespi

    reply to this | link to this | view in thread ]

  7. icon
    Mike (profile), Jan 18th, 2004 @ 10:06am

    Re: Are you kidding?

    The artist, in most cases, seems to agree with me. They *want* more people listening to their music.

    If you talk to most musicians these days, they'll admit that they make most of their money from live shows, not from CD sales. In that case, the more people who hear their music, the more likely they are to come out and see them. Most musicians already understand this.

    Anyway, everyone who says they'll never make the same with alternate business models is ignoring the history of new entertainment delivery devices. It's the same complaint everyone always makes - and what they miss is that the new business model always opens up many many more ways of making money.

    reply to this | link to this | view in thread ]

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