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
    Tower Records, 6 Aug 2006 @ 5:50am

    Why don't they sue Tower for illegal file sharing?

    Look at this page at Tower Records! What is stopping anyone from enjoying this music without paying for it (other than personal taste?) Just click any of the tracks and sample it. The RIAA seems very selective about who they go after. The real problem here is that the music industry's model will never be able to scale with the rest of the networked culture. For that single reason they are trying to extinguish the great benefits of being connected inherited by the innovative world of people. They would be more than happy if their buddy Tower Records scaled to the size of the average dorm room deployed P2P network. They'll never make it though, and the music corporations will see their capital positions evaporate in inverse proportion to the scale of common connectivity. They had better get on the right side of this market.

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