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
    BillGod, 3 Aug 2006 @ 9:48am

    Holy crap a lot of comments

    I never understood the "used" cd industry. To me this is a bigger threat to the RIAA than mp3's. I have tons of freinds that only buy used. This goes for games too. Can some one explain this to me?

    (new) person buys a cd/game and pays the clerk at the store. The store makes $$ and so does the company that produced the cd/game

    (used) person buys a cd/game and pays the clerk at the counter. The store makes $$ but the company that produced the cd/game never sees a dime.

    I am not positive but I dont think the used stores have to pay royalties on anything do they?

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