November 21, 2008
The music industry loses billions of dollars each year because of unauthorized downloads and file sharing. In 2007, the value of unlicensed music trafficked on P2P networks was pegged at $69 billion. Many industry insiders see this as having a massively negative impact on the music industry.
However, Mike Masnick of Techdirt, and Michael Arrington of TechCrunch both disagree. "If anything, you could flip this around and use it to show how much goodwill and free publicity provided by fans the industry squandered by trying to turn those fans into criminals, rather than learning to embrace that free labor in a business model that took advantage of all of that free promotion," writes Masnick.
Comments | 13 Total
November 21, 2008 at 11:24am by Siddharth Bhatt
The music industry is going through a tough turf for some time. Invasion of mp3 players and p2p applications is making music industry vulnerable against piracy. I wonder how long the music files can be keep away from free share. Now that real player allows any official video on yahoo music or any online music site to record in real player format. This can eventually converted to mp3 by using various tools.
Isn’t it time to accept free music concept for the industry. Of course not completely free there can be site that allows users to share the music files for free within user community. Users can download such “free” mp3 for there players. These files are of course added with advertisement in the form of creative media that is viewable while ipod or mp3 player with LCD is running. Or there can be an advert before the song starts just like online music video sites eg. Yahoo music! At the end of the day there is nothing free, free has its own cost! These are few ideas in thin air, but music industry has to find someway to allow users to share music, but maintain a way of advertisement that allows them to make green!
November 21, 2008 at 11:31am by Rip Empson
I doubt the music industry is going to embrace unauthorized file-sharing as a form of marketing. Does that really make sense? I don't think so. What I do agree with is Masnick's concluding line: "so many folks in and around the industry view [the movement towards free] as a problem rather than a huge opportunity." What has frustrated me so much has been the resistance the music industry has shown since day 1 to free music and file-sharing. The industry has only recently started to do what they can to take advantage of the digital revolution. It honestly reminds me of the auto industry. And perhaps we should give part of the $700 billion bailout to the music industry...? They certainly deserve it, don't they?
November 21, 2008 at 12:59pm by Christina Enciso
Free music downloads are happening everyday (via Zune, Limewire, Flickr), a counterculture to the Microsoft model, which in essence is an anti-free market. Right to exist? Why not? No harm in catering to music lovers' dreams of democracy. Perhaps musicians and big distributors might co-operate such sites, vending promos and other exclusives and offering services which compete fairly with fair openware models.
November 21, 2008 at 6:45pm by Joe Mendez
DRM, although useful at angering many, is only a way to make IP thieves more creative. Like any tech, it can be gotten around, and investing money in it is the virtual version of standing at the foot of a dam with your finger in the first crack.
November 21, 2008 at 8:55pm by Jennifer Swofford
I've agreed with this since 1999. I have been exposed to countless artists via music sharing that I never would have been exposed to otherwise, and have consequently purchased many CDs that I never would have purchased otherwise. I suppose the possibility exists that I represent a small group.
November 22, 2008 at 8:07am by Allen Laudenslager
Just go back to the way music was sold in the 50's, two songs on a 45 rpm record for about a buck! In today's market that might translate into one song for three or four bucks, but stop trying to sell just albums for $20. And make it very easy to buy on line.
November 22, 2008 at 10:27am by Manny Corrao
Do you think it is OK to copy a book, or a major software program? Music, like a book or a software program is intellectual property and the creator is entitled to protection from distribution without consideration (cash).
November 22, 2008 at 11:21am by Mike Lawrence
The more transparent you are, the more you involve everyone, the better off you are.
November 22, 2008 at 5:05pm by David Ruschinek
The problems with the Music Industry is that for too many years they have wanted to sell CD's which cost about $1 to produce at $20.
I believe in Mike's Ideas because they are an answer to several things that challenge the Music Industry:
Copyright on songs, Albums - this is usually held by the Recording Label and not the Artist.
Counterfiet - cheaper copies of the original package.
Consumers 'fair usage' rights - the ability to actually purchase a song and have freedom of where and how and with what you can listen to it with. and the right to have a "backup" copy
File Sharing - the music industry isn't really losing money, they are just not getting paid for every copy of every song.
The difference between Mike and Michael is that unlike other people "yelling" for "free", they both recommend and promote alternative business models for the music industry.
How could you not agree that.
November 24, 2008 at 10:08am by Diego Vanegas
I believe customers aren´t willing to pay such high prices for music and similars (DVD/SW/VG). I mean the market recognizes a different value for these goods. I would like to read about what the distribution companies think about lowering the price tags looking for lower margins and an increased sales volume.
November 24, 2008 at 10:15am by Seth Gray
they need to face reality: file sharing is here to stay (for a while, at least). Given that, how can they use it to their advantage? Give the music away for free as a way to energize and empower their customers. Make money on concerts & merch.
November 24, 2008 at 11:27am by Paul Maiorana
Test comment
November 24, 2008 at 2:39pm by Christian Young
I've been saying this for years. If the music industry has been losing money it's been because it took too long (by trying to control the tech) to adopt the new technologies that we're emerging back in the mid-90's. Even now, I - and others like me - am discovering more new artists (and even established artists) from music downloads than I ever was listening to the radio. As radio has became a corporate entity that plays the same music over and over again (who hasn't heard the same song on different stations playing at the same time?) these downloads provide much needed exposure that has the potential to translate into bigger concert revenues and wider artist recognition. True, that may spell the end of the CD as we know it, but back in the 90's Blockbuster took a pass at burning CD's-on-demand...why not take another pass at the idea so that folks who don't want to or have the tech to burn their own CD's can still buy music legitimately, labels still make their money per song (I'm sure they can find new avenues to milk additional dollars from in the artist management lifecyce) and the production costs of CD's are significantly reduced...plus it benefits the environment. Unauthorized downloads are only a nightmare for the lazy music exec who expects money to grow on trees, for the ambitious out there, there are plenty of opportunities to exploit - ain't this America?!?!?!?!