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File Sharing and CD Sales, Again

Posted by michael on from the dissection-and-vivisection dept.

Andrew Leonard writes "Stan Liebowitz, an economist studying the effects of file-trading on the music industry, says in an article in Salon that new numbers have convinced him that the decline in CD sales may be partially attributable to MP3 downloading. But he also argues that the decline does not justify draconian new laws."

1 of 313 comments (clear)

  1. Treat sharing as promotion and reward sales by epeus · · Score: 4, Informative

    The problem is not copying, the problem is paying the creators for their work.

    Historically, some companies have tried to solve this problem using various techniques (publishing, advances, royalty payments, advertising-supported broadcasting, pledge drives). All of these are predicated on economies of scale for large runs, and high costs of entry for competitors.

    When a new technology comes along that changes these economics, it is time to look for a new model to solve the underlying problem, not construct a technical and legislative framework to restore the old barriers.