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Research: File Traders And Music Purchasing
An anonymous reader writes: "Like a TV preacher taking excerpts from the Bible to support a contrary thought, the results of research can be similarly interpreted in opposite ways. Edison Research just released a pro-record industry report stating '10.1% of 12-17s are actively downloading/not purchasing music.' Richard Menta over at MP3 Newswire noted that this also means 90% of file traders are buying music, a positive result that supports the virtues of trading. Menta then goes through the study's findings one-by-one, questioning Edison Research's conclusions. This includes their recommendation to the industry to fight the 'downloading problem.'"
I like to consider my money an investment into a band I support - the more money they have to spend, the more music I get from them in the future. And just like any investment, one must have research tools on hand to ensure that your money is going to get a good return - It just so happens that in my case, its gnutella. Its not piracy - its good business. Surely the RIAA understands that.
Another possible option is to download the songs you want, or a whole cd of you so desire... then find the band's contact address and send them a bit of cash. Perhaps it'd only be symbolic, but I know for a fact that the $2.50 you send them in the mail would be substantially more than what they'd get otherwise - plus, the band might just get that "playing music for the sake of music" feeling again. It's worth a shot *shrug*
How did the Greatful Dead do it? They made money from concert tickets, t-shirt sales (Hey, that's the sweetest pie! quoth Krusty.) and probably a little from album sales. But they never really cared about concert bootlegs. Don't know how they felt about trading actual albums.
I'm not a deadhead by any stretch of the imagination, so maybe someone can explain.
Concerts are where most bands make the vast majority of their money. The only people making real money off CD's are their labels. The only reason bands need the albums at all is to raise awareness for their concerts. So if they can use the Internet to make others aware of their existence, the labels are no longer nessecary. Excellent business model, but theres no place in it for the RIAA, and hence they'll fight it every step of the way.
Why?
Ah, such beautiful doublespeak. Would you like to hear the sad tale about the twenty-something who is actively not purchasing a new Lexus? In fact, said twentysomething actively doesn't purchase a new Lexus every single day of the year. Assuming a new Lexus costs $40,000, that adds up to nearly $15million per annum, which is a lot of lost revenue for the high-end car industry.
When questioned, this twentysmoething admits he feels no moral misgivings about accepting rides to work in his neighbor's Lexus without the company's express permission, and will probably continue to get free Lexus rides without paying in the foreseeable future.
Something needs to be done about this not-buying Lexus problem!
One model that can work has already been mentioned by someone else: to focus more on making money from live performances, a la Grateful Dead. Not everyone gets to create something and stamp out millions of copies very cheaply, making huge profit margins on each one. The music industry is actually something of an anomaly in this respect.
Providing convenient and cheap downloadable music would also help, so that it's easier and preferable to pay a small fee to download a high-quality recording than it is to copy a crappy one. No-one has yet actually done this, the middlemen are all too busy resisting the inevitable reduction in their revenue stream.
The fact that middlement are being disintermediated doesn't mean that there's no future for the industry as a whole, just that there's no future for certain kinds of middlemen.
RIAA members won't fall all over themselves to copy whatever successful model arises, because that model will not involve them at the profitability levels they currently enjoy. However, I'd bet that consumers and artists will both find the end result more congenial, on average, with the possible exception of the likes of Maddona, Britney, and the Back Street Boys.
I'm with you. I keep hearing about the "outdated business model" that the RIAA are using. Ok, I'll stipulate that, so what's a model that works?
The problem with this question is that no one will ever accept anything as the right answer. The current situation with the RIAA is like a gasoline fuel company trying to keep their profits up when everyone has switched to electric or hydrogen cars. The market is simply gone, and the best that the company can hope to do is sustain itself by changing to a new, smaller business model that serves the few customers that prefer their product. Like or not, it has become a solid fact that people now regularly trade music between each other and burn mix CDs for their friends. From here on, the RIAA can hope to keep themselves from dying by finding a newer, smaller business model, but they cannot get back the annual profits that they once had.
I'd propose a new business model for them, but I'm one of the people that just thinks that the RIAA is doomed and that the music "industry" is bound to join the art and book "industries" as small but popular businesses that offer a good product at a sane price. I believe that the days of musicians being huge superstars and their companies making billions of dollars are reaching their end, and that that is not as bad a thing as many people think it is.