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
    BillDivX, 3 Aug 2006 @ 1:57pm

    the reason that music companies are afraid is...

    from my example above. Companies not being needed by musicians anymore, because eventually the internet will form a model by which music can be discovered more directly. The music companies are desparately trying to hold us back, not because they couldn't come up with a viable business model to sell music on the internet, but because they know that going down that path will eventually cut them out of the loop entirely. Music publishers that are the kind protected by RIAA, are just the middle men of the music business, they buy the rights to a product and distribute it. And it's a middle-man arrangment that musicians have a long history of hating. These companies are afraid of the internet because it offers an opportunity to eventually cut the middle man entirely. It doesn't just take away their way of selling a product, it will eventually take their product away entirely. Their "product," if given an alternative, would love to do without them, and they see that such an alternative is on it's way. The only way they can slow that down is to hinder the innovation that is driving it. and the best way to do that? lawsuits and DRM on all the current music that is being used to build and establish that innovation. It has nothing to do with piracy. It has everything to do with them being a middle-man, that, until now, existed only because it was a necessary evil. The evil is no longer necessary, and it is afraid, therefore, it is becoming more evil.

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