Latest Threat To The Music Industry: CDs

from the lalalala dept

We've talked before about the overhyped CD swapping site LaLa, and why it seemed unlikely to succeed. Services of this nature -- there have been several other attempts at the exact same thing -- tend to get filled up with the junk that people want to get rid of, as opposed to the CDs they really like, making them as popular as the dollar bin at the CD store. But a new report from IDC is sounding the alarm bells and warning the music industry that because these CDs are DRM-free (as virtually all are), people could copy them onto their computer before trading them. In fact, the IDC analyst is probably right that people will copy the CDs before trading, but then the whole of the used CD business is a threat too. And under that logic, even retailers of new CDs are contributing to the piracy problem. But then everything is already on P2P sites, which only need one person to upload an album for it to propagate; yet another person uploading Dark Side of the Moon, whether they got it through LaLa or Amazon, does nothing. If the music industry were serious about beating piracy, there's an easy solution: stop selling music. But assuming they don't want to take this drastic measure, they should look for fresh ways of selling music, as opposed to worrying that every new distribution model might contribute to piracy.

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  1. identicon
    Jay, 3 Aug 2006 @ 9:26am

    Common sense...

    DRM doesn't matter. If you can hear it, you can copy it. No matter what new media they invent, no matter what DRM they put on it. I you can hear it, you can copy it, even if no one is working on hacking the DRM. Just record it as analogue and convert it back. The more they work on DRM the more popular they make P2P networks. If it's too hard for the average user to rip (per his fair use rights) then he will turn to the P2P networks to get his mp3's of the album he just bought. And while he's searching there he might find a few other things he's like to hear.

    And I think it should be obvious to the RIAA by now that no matter how much they prosecute P2P users and companies, all they are accomplishing is driving the networks a little further underground and making users harder and harder to track. The RIAA and MPAA are probably directly responsible for most of the inovation in P2P networks in recent years, especially in the area of privacy.

    So they are wasting money on researching DRM, and prosecuting P2P users, and driving up the costs of CD's and Movies to pay for it all. And they wonder why sales are declining. They can't possibly do anything put piss off their customers if the keep doing this. Common sense says they need to either:

    A.) Stop spending money on these things, so they can drop the cost of their product and see if that brings customers back.

    or

    B.) Spend the money on researching and developing a new buisness model that involves convenient online distribution at a reasonable price.

    Personally, I refuse to purchase CD's from major labels, because I won't help them fund a futile war on P2P technology and research on how to restrict my fair use. I'll wait for someone at the companies to grow a brain and get some common sense.

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