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Sony: Case of Right vs Left Hand

Masem writes "Wired has an interesting article that explains the problem facing several of the megacorporations that have both content and technology divisions, as specifically in the case of Sony. The tech divisons want to offer the consumer all the possible options, while the media divisions are very concerned on DRM. While the two groups are trying to meet somewhere in the middle, they are still at odds about it, and also finding that that middle is becoming rapidly populated by other competitors (including Microsoft) in just how to empower consumers without sacrificing their copyrighted materials. Both divisions are trying to adopt to just changes in the landscape and hoping to find something that will work."

216 comments

  1. Split up by bsharitt · · Score: 3, Insightful

    In the current enviornment, Sony may be better off spinning off their music division.

    1. Re:Split up by JudgeFurious · · Score: 5, Insightful

      I know if I were Sony I would certainly consider it. A slice of a 20 billion dollar industry in conflict with your own 40+ billion dollar electronics business would make a pretty clear decision for me.

      --
      Appended to the end of comments you post. 120 chars.
    2. Re:Split up by Trevelyan · · Score: 1

      I was thinking similar.
      If the greate 5 music empires realy are sinking ships, I'd think Sony should be carefull not to flush the rest (or large part) of its business down with its music division.

      I realy dont think it possible for them to get us to buy music at such steap prices ever again.

    3. Re:Split up by Anonymous Coward · · Score: 0

      "Do not dangle the mouse by its cable or throw the mouse at co-workers." - From a manual for an SGI computer.

    4. Re:Split up by zhevek · · Score: 2, Interesting


      The idea of splitting a company just isn't part of the current corporate thinking. Article after article in business magizines are devoted to merging companies, but nary a one devoted to intelligently unmerging.

      Though we may see that very soon when Time Warner decides it has had enough of AOL losing money ;)

    5. Re:Split up by godzilla808 · · Score: 1

      Having a stake in both sides of the fence would allow Sony to have say in what shape content delivery would take in the future. Spinning off the musak division would leave them in a position where they would just have to take what is handed to them from whoever is providing content.

      --
      ...///...
    6. Re:Split up by KGIS · · Score: 2, Insightful

      I disagree, if I was in their position I would be looking at changing the business model so that one side of the company could leverage the other. If it would work they would be the only company in their market. Once their compatitors would figure out how to compete again they would already be learning from their mistakes and ready for round two.

    7. Re:Split up by Anonymous Coward · · Score: 0

      They might just make more money on balence by giving away the music to spur sales of the hardware!

    8. Re:Split up by JebusIsLord · · Score: 1

      I'll consider paying $20 a disc for groin-grabbingly good albums that rip to MP3 without hassle. Hell thats usually what I end up paying right now for old, relatively hard to find artists.

      --
      Jeremy
    9. Re:Split up by shakuni · · Score: 1

      This is dramatic but wrong. Just like its a slice of 20b industry its a portion of the incremental electronics business that sony is trying to balance which is nowhere close to 40b +.

      Imagine me selling apples and the total market being $100 and me selling $20 out of that. Now oranges come (strictly the analogy is wrong but will suffice to make the point)in. Obviously if oranges come in then growth in orange market (because if new varities) may decrease. But the decrease would still be less than the new orange market. Also remember you dont want to squash (no pun intended) orange market because it is contributing to the increase in fruit eating habits of people resulting in an increase in apple market. So what do you do you participate in the orange market while being aware that you may lose some of the apple market but all in all you still have more money coming in. all in all its not as simple as you are stating it to be. Maybe your conclusion is the right one but its not obvious.

      my char anna (an indian quarter)

    10. Re:Split up by TXG1112 · · Score: 1

      If you read the article:

      "Without entertainment, which provided 30 percent of the company's revenue and nearly all its profits, Sony would be as bad off as Matsushita, NEC, and Toshiba, its traditional Japanese rivals."

      So, if Sony didn't keep its' content producing divisions it would go broke.

      --
      I will not be pushed, filed, stamped, indexed, briefed, debriefed, or numbered. My life is my own.
    11. Re:Split up by JudgeFurious · · Score: 1

      Well the figures may indeed be wrong. I am quoting them from a commentary that figured into an article that was posted on Slashdot yesterday.

      It's located here: http://www.wired.com/wired/archive/11.02/dirge.htm l

      In it the writer stated the following: "Last year, the Big Five together sold about $20 billion worth of music. Meanwhile, Sony alone saw about $42 billion in electronics and computer sales. If Sony wants to sell MP3-capable cell phones - a big thing in Japan and potentially worldwide - how much attention will it pay to Sony Music's protests?"

      Now certainly the numbers I used are only as accurate as the information he used in putting together his article and I'll admit that right up front. That's not to say that I'm debating you or questioning your meaning in your apples analogy. That made complete sense to me. I do think though that if this man is correct in his numbers that Sony would not let the priorities of their music division (and I'm not talking about all content here, merely their music label holdings) get in the way of their larger cash maker.

      Like another person who replied to my post said though I could see them making an attempt at changing their way of doing business to leverage their music content to better push their electronics. That would be sensible of them and probably a better plan than simply cutting Sony Music loose like I stated.

      --
      Appended to the end of comments you post. 120 chars.
    12. Re:Split up by Anti-HanzoSan · · Score: 0

      So what do you do you participate in the orange market while being aware that you may lose some of the apple market but all in all you still have more money coming in.

      Sure. I expect eventually the music industry will become a loss-leader for the electronics and communications industries. The companies will break even or even take a loss on producing the music in order to sell the bandwidth and the devieces to play it on.

      That isn't really a surprise. The original recording companies in the early 20th century were the manufacturers of phonographs, such as Edison, Victor and Columbia. They originaly went into the recording business to create the demand for their primary products. Only later did independent recording companies begin producing music as their primary product.

      Of course, under that arrangement the artists themselves didn't get rich selling phonograph records. Originally they'd only get paid for the performance which was recorded, they didn't get royalties from record sales. They still earned most of their money from live performances. In fact, Edison was so cheap that when he introduced Diamond Disks in 1912, he would make the masters for his cylinder records, which were still popular, from the masters for the Diamond Disks. That way he'd only have to pay the artist for one performance, and unfortunately the quality of cylinder records suffered from the result of this technique.

      I think you're going to see a return to an arrangement like that. Artists will mostly issue recordings to get publicity, and the equipment/bandwidth providers will subsidize the cost of recording to push their primary products. But it won't be a primary product for either the artist or the recording companies. The windfall profits on recordings, which were mostly a byproduct of 20th century recording technologies, are pretty much over.

    13. Re:Split up by tempest303 · · Score: 1

      I love you, Anti-Hanzosan.

      I don't know who you are, and I didn't think much of the posts I read in your posting history. But that doesn't matter! I love you because I, too, share your dream of destroying the obnoxious evil that is HanzoSan! I, too, suffer under his ill informed, unfounded Pollyanna optimism! Let me join your quest to stop the HanzoSan in his tracks!

  2. How about... by Anonvmous+Coward · · Score: 5, Insightful

    ...trusting your customers?

    If something's fairly priced, nobody's going to take the time to copy off something to somebody who doesn't wanna pay. "Go buy your own."

    1. Re:How about... by Anonvmous+Coward · · Score: 4, Insightful

      "... the proper price for something is free, even when paying for something gives you moral happiness and gets you a better product..."

      Sorry, not true. If price was the motivator behind music trading, then we'd also have more games/apps/other warez available on places like Kazaa. Surprisingly, it's not that well populated with anything but music.

      Games cost $50. Think about it. I think the main reason games aren't so popular there is that game demos are widely available and are free to download. That's enough to make a purchasing decision right there. You don't get that type of service with music.

    2. Re:How about... by axlrosen · · Score: 1

      The problem with your theory is that it has to be true for every single person for it to work, and I'm willing to bet that that's not the case. If it only holds for 999 out of 1000 people, then everything will get shared.

    3. Re:How about... by salesgeek · · Score: 4, Insightful
      If something's fairly priced, nobody's going to take the time to copy

      Amen to that. 99.9% of the problem with the movie and the music business is that their stuff just isn't worth what they charge. They've overproduced (there's more music and movies at the average wal-mart than I could listen to or watch in a lifetime), overhyped and finally overpriced their product. Result? People would rather go out of their way to copy than to buy JUST TO SPITE THEM!

      How about ink jet cartridges? Ever wonder why a store like Staples has to put them behind the counter? Because their customers will take them because they aren't worth paying for (I personally refill, the penalty for refilling is an occasional ink-stain)!

      I'm sick of the fscking razor blade business model. I'm tired of 80% marketing expense product cost. Now I will go wander back out in the desert from whence I came...

      $G
      --
      -- $G
    4. Re:How about... by Anonymous Coward · · Score: 3, Interesting

      (1) You can preview music from almost any album on Amazon. (True, the quality's not great...)

      (2) Music has a much broader appeal (to the non-geek public) than games, etc., so it no surprise that it's traded more.

      (3) Napster was for music only, and Kazaa is mostly about music. (The UI is very music-centric.) Most people probably have no idea that you can upload or search for anything else.

      (4) People go where the stuff is. There was an infrastructure for geeks trading warez long before Napster or Kazaa, so that's where people look.

      (5) It doesn't matter if it's on Kazaa or a warez site, the fact that people share games etc. means that people like getting stuff for free that they normally have to pay for. I think it's delusional to think that people are mostly download music to preview it, and then they'll go and pay for the stuff they like.

    5. Re:How about... by Anonvmous+Coward · · Score: 1

      "(1) You can preview music from almost any album on Amazon. (True, the quality's not great...)"

      You can preview selected tracks of music, you don't get a chance to preview the whole cd. Plus, if you don't like it, tough shit you own it anyway.

      "(2) Music has a much broader appeal (to the non-geek public) than games, etc., so it no surprise that it's traded more."

      Games are harder to buy than music CDs are, especially for college students. It's not a matter of MP3s being more broadly distrubted, it's a matter of need. Warez are all over the web. Strangely enough, P2P hasn't been a big conduit of that. You'd think the warez kiddies would be all over that.

      "I think it's delusional to think that people are mostly download music to preview it, and then they'll go and pay for the stuff they like."

      I think it's delusional to think that people flock to P2P because the music's free, yet the RIAA hasn't had a bite taken out of it's revenue stream. The only real concsequences the RIAA has faced with P2P is a severe dropoff in the sales of singles. Color me stunned.

    6. Re:How about... by Anonymous Coward · · Score: 0

      The main reason that games aren't popular is that games are multiple GB whereas a song is a few MB. There are free previews of movies available on TV, and yet they're still popular on Kazaa.

    7. Re:How about... by Chris+Carollo · · Score: 1
      Games cost $50. Think about it. I think the main reason games aren't so popular there is that game demos are widely available and are free to download.
      Or maybe that they're an order of magnitude larger to download and bandwidth isn't infinite.

      Or maybe that they take much longer to use than music, so the demand for a game "collection" is much less. I buy more games than I have time to play. Same is true for almost all my peers (mid-twenties).
    8. Re:How about... by rgmoore · · Score: 4, Insightful

      Wrong. As the software industry shows, it's quite possible for a company to make money selling originals even when there's a whole industry devoted to making illicit copies. So long as a reasonable percentage of people prefer to buy legitimate versions, the creator can continue to do fine. There just has to be some incentive for people to pay for legitimate versions of whatever- software, music, or movies- rather than illegitimate copies. In the software business that comes in the form of tech support and legal threats against businesses that use illegal copies. In the movie and music business it's likely to be in the form of guaranteed quality of the copy. People who use file sharing networks constantly complain about the large percentage of poor quality files. Legitimate providers could very easily make money by charging a decent amount for the promise that the technical quality of the recording will be high.

      --

      There's no point in questioning authority if you aren't going to listen to the answers.

    9. Re:How about... by axlrosen · · Score: 3, Insightful

      Actually I was talking about the poster's theory that nobody would upload songs if they could be bought inexpensively, not whether a company could make money in the face of song swapping.

      People who use file sharing networks constantly complain about the large percentage of poor quality files. Legitimate providers could very easily make money by charging a decent amount for the promise that the technical quality of the recording will be high.

      If they did start to sell high-quality, unrestricted song files, then I imagine the quality of the files on the file-sharing networks would go up too, right? (They'd be the same files.)

    10. Re:How about... by Anonymous Coward · · Score: 3, Interesting

      > If something's fairly priced,

      It would be an improvement if the music industry gave better value. Lower prices may reflect that for current products, but the basic music CD has not changed for quite some time.

      The production end needs to stop complaining that consumer technology has cought up and needs to move on to better products. Either put out smaller disks, or use much higher densities to give added values.

      For example a multilayer CD that could be played on most current CD players but also contained video clips, session video or film of the concert. Perhaps just bundle a CD and a DVD for current CD prices and offer the CD only at a lower price.

      Sure, they could copy the music for playing in the car or on a walkman, but you would need to buy the product to get the full value.

      This would help both industries: new players required for multi-layer CDs or new markets for DVD players.

      Cassette tape added value over vinyl by being portable and less destructable. Records were dubbed to tape but this lost quality compared to buying new tapes.

      When CDs first came out they could be dubbed to cassette tape for walkmans and car players (and probably still are), but the CD added value by being better quality so people bought CDs rather than just copying borrowed ones to tape.

      Now there is no difference between bought product and copied product the music industry needs to introduce that difference.

      Of course DVD or mini-CD copiers will eventually catch up and the electronics industry will make much money selling these, so the next step by the music indutry should then be to some other way of adding even more value.

    11. Re:How about... by Anonymous Coward · · Score: 0

      Yeah right, once someone codes a P2P app for the XBox watchout!

    12. Re:How about... by tx_mgm · · Score: 1

      If something's fairly priced, nobody's going to take the time to copy...

      and here's the funny part:
      what explanation would you be likely to hear from a suit in the recording industry about how freakishly expensive cds are considering the content? offsetting their bastard consumers who pirate the music and cost them sales!

      and what would a someone who pirates say is their reason for it? because cds are so freakishly expensive!

      yes, folks. we have ourselves a nice little delimma here...

      --
      Gentlemen...BEHOLD!
      -Dr. Weird
    13. Re:How about... by LoudMusic · · Score: 1

      I can back that up. If CDs were $8 and had a couple more songs on them I'd buy a lot more. If DVDs were $12 and were consistant with their features (alternat languages, sub-caps, etc ...) I'd buy a lot more.

      In addition to purchasing more media we'd be buying high end (Sony) electronics to play them on.

      As it is, we use old junky hardware and steal the media.

      --
      No sig for you. YOU GET NO SIG!
    14. Re:How about... by Anonymous Coward · · Score: 0

      Wow, that ink cartridges analogy is dead on. Excellent.

    15. Re:How about... by Anonymous Coward · · Score: 0
      Games are harder to buy than music CDs are, especially for college students. It's not a matter of MP3s being more broadly distrubted, it's a matter of need.
      No, you are just out of touch with the average college student. Yes, many people enjoy video games on a regular basis. Is it most people? No way! I am a semi-geek among decidedly non-techie friends. I don't play video games, and neither do any of my friends. We all listen to music all the time every day. All of the many, many people I am friends with at college listen to music all the time. Some of them I see playing games, but most of them don't own any game that is much more than the level of Snood.

      You are grossly overestimating the appeal of video games.

      Sure, if you sat me down in front of a PS2 with a cool soccer game or whatever I'd probably play it, but I would never go through the effort of going onto Kazaa or Gnutella and finding some game to download. And I'm certain that goes for most of the people I know. And I bet at least half of them don't realize that you can download things other than songs.
    16. Re:How about... by joshsisk · · Score: 1

      Games aren't popular? You do know that GT : Vice City sold more copies in just DECEMBER '02 than all but the top 2 CDs released that year?

      That's right : in one month, it outsold all but the top 2 music cds of the year - something like 4 million copies.

      That's pretty popular sounding to me.

    17. Re:How about... by MSZ · · Score: 1

      Why all this talk seems to me to be "We only want to rape the customers halfway, so they won't see they're fucked"?

      --
      The moon is not fully subjugated. I demand a second assault wave preceded by a massive nuclear bombardment.
    18. Re:How about... by CTho9305 · · Score: 1

      Absolutely not. I would NEVER steal an ink refill, because it cost someone something (time and money) to manufacture it. Stealing this incurs extra costs. When someone downloads an MP3, the only cost incurred is bandwidth - specifically, that of the server and the client. The artist isn't actually hurt directly.

    19. Re:How about... by seaan · · Score: 3, Insightful

      ...trusting your customers?

      But that is not really what DRM is about. Protecting against illegal copies is just an excuse, what they really want shows up in this quote from page 4 of the Wired article:

      A digital rights management system isn't just a traffic cop; it's a powerful tool that gathers all kinds of information about consumers, from credit card numbers to listening habits, and dictates which devices can talk to the PC and how.

      What Sony entertainment, and the other publishers are really afraid of is "money left on the table". A lot of that money comes from things consumers used to do for free, but they are in business of making money, not running a charity. If they have to buy a few laws to get extra control, they don't care if it hurts society in the long run. Let's close this post with another quote from page 4:

      "If you're looking for logic in this situation - hey, it's the music business," says Launch founder Dave Goldberg. "There's not a lot of logic in what they do." But to Ehrlich, the logic is in not letting another company play music gratis when it could be paying. Precedents matter: If broadcast radio hadn't been exempted from royalty payments decades ago, for reasons hardly anyone can remember, the music industry could be collecting an extra $2 billion or so a year. "It's hard to change the old world," Ehrlich declares.

    20. Re:How about... by broter · · Score: 2, Insightful

      "...You are grossly overestimating the appeal of video games..."

      I think you're wrong. The way I see it, it's more a matter of variety. Most video games are the same. FPS, empire, and a few others. The rules change subtly, but they act about the same.

      Music, OTOH, has an incredable variety outside of the mainstream radio world. Even in a given genre, artists can have a completely different sound. Then there are the artists that don't fall into any genre except the catch-all "alternative-electronica-whatever."

      So, it only takes a few games to give me a good sampling of the industry - civIII, OFP, solitaire, and a MUD. But even if I spent my entire day listening to music - Radiohead, Cabaret Voltaire, Pearl Jam, Beethoven, Mozart, F/C kahuna, whatever - I wouldn't scratch the surface. ...So I think you're a bit off.

      --
      "One man can change the world with a bullet in the right place."
      - Mick Travis, "If..."
    21. Re:How about... by Canean · · Score: 1

      I think it has a lot to do with rentals. How many people even consider downloading a movie see for $5? Or a game they can try out for $5?

    22. Re:How about... by lubricated · · Score: 1

      (1) you can preview selected parts of selected songs with shitty quality of selected cd's on amazon. Relying on this I have bought shitters in the past.

      (2) Games are also more desired because they are more expensive.

      (3) I disagree, about kazaa but that's ok.

      (4) there was also an infrastructrure for trading music, but Kazaa makes games and music trading easy.

      (5) I certainly have been downloading stuff to preview it. It's caused me to be frustrated when I can't find something but happy when I don't buy crap cd's.

      I have purchased over 300 cd's in the past. That would make me the customer that the RIAA should cater to if they knew what was good for them. Recently I have been buying older cd's. Going all the way back to the 60's. Slowly crap has pervaded everywhere. Although there's still some shining stars.

      --
      It has been statistically shown that helmets increase the risk of head injury.
    23. Re:How about... by shotfeel · · Score: 1

      Or maybe some of us lamers can't get past the first level anyway, so the free demo is all we'll ever need.

    24. Re:How about... by salesgeek · · Score: 2, Insightful

      I agree that stealing is wrong. I think the problem with the record business (or the ink cartridge business) is that we have the victim and thief backwards. BTW - stealing ink cartridges isn't a good idea. We don't need shoplifters making the $40 cartridge for my $35 printer more expensive!

      --
      -- $G
    25. Re:How about... by PetWolverine · · Score: 3, Insightful

      I'm posting this using a computer running Mac OS X Server. Do you think I paid for it? I'm a college student (==broke). Of course I didn't throw away $1000 on some OS just so i could serve my music (on Louise) more easily (ah, the irony). I found Server on LimeWire (a Gnutella client)...along with MS Office X, Adobe Photoshop, and countless other pieces of software.

      It's not that I haven't ever paid for software, it's that the software I've paid for cost what it was worth: $7-10. So much for cost not being a motivating factor behind file sharing. Bigger apps are obviously worth more, but $400 for Office is exhorbitant. The one normally priced piece of software I've bought was a $90 disk utility called Data Rescue X that seemed to be the only thing that would get my music back after one of my hard drives crashed. But you'd better believe I tried the software first.

      Games cost $50. Think about it. I think the main reason games aren't so popular there is that game demos are widely available and are free to download.

      This would be more accurate:

      Games cost $50. Think about it. I think the main reason games are so popular there is that game demos are widely available and are free to download.

      I don't buy something I can't try first. I buy shareware, I buy music I've already downloaded, etc. If I were in the market to buy a car, I would want to take it for a test drive; this is no different.

      Incidentally, I think if more people would take this shop-around attitude to purchases, more people would have Macs...but I'll stop there before the moderators shout, "Off-topic!"

      --
      I found the meaning of life the other day, but I had write-only access.
    26. Re:How about... by Poeir · · Score: 1

      Forgive me, I kind of lost my train of thought about halfway through, but I'm posting this anyway.

      I think the whole situation boils down to this: "Sony's electronics side needs to let customers move files around effortlessly, but its entertainment side wants to build in restraints, because it sees every customer as a potential thief." A more successful paradigm would be to see every thief as a potential customer. Let people rip, mix, burn, all they like. If people find value in purchasing something, they will buy it. Basic economics. There is a sense of guilt in getting something for free that is not being offered for free. The primary rationalization for doing so is that one is stealing from thieves; however, if there is value, people will buy it out of a sense of justice. Conversely, if there's no value, people won't buy it. Either way, it doesn't matter if people can get it for free or not, legitimatly or not.

      As a real-world example, one of my favorite bands provides all their tracks online (in RealPlayer format) for a slight hassle in banner advertisements. I question how much bandwidth this sucks up on their end, and how the economics of it work out, but because of the tracks provided, I bought my first CD in several years (I watch TV and play video games instead of listen to the radio or CDs, typically). And I can't find Nuclearblast (the label's) name on this list, so no guilt on my end.

      Also, I just helped someone out with buzzword bingo in that second paragraph. Oh, well.

      --
      Sigs are like bumper stickers.
    27. Re:How about... by ShawnDoc · · Score: 1

      No. Currently most songs you can download on P2P networks are perfect CD rips. The problem is that most of the P2P programs are pretty stupid and will "share" a song that was only partially downloaded. So you end up having to download the file from 3 or 4 different sources to actually end up with a recording that is the full song. While file size is a good indicator of whether you get the full song or not, due to different encoding/compression its not fool proof. Also, a lot of the files are mislabeled which is I think (Just based on what I've seen) often done by fans to encourage you to listen to the bands they like. (Ie. Posting a song by their favorit indie band with the name of Eminem's new song)

    28. Re:How about... by Anonvmous+Coward · · Score: 1

      "Or maybe that they're an order of magnitude larger to download and bandwidth isn't infinite."

      If that were the case, 700 meg DVD rips wouldn't be in abundance on kazaa.

    29. Re:How about... by Anonvmous+Coward · · Score: 2, Interesting

      "A more successful paradigm would be to see every thief as a potential customer."

      I was telling a friend of mine at lunch today that the SonicBlue court case is retarded. There are shows he likes, there are shows I like, there are very few shows we both like. It occured to me that if I had a VCR setup, I could tape one of my favorite episodes of my favorite show and convince him to watch it, perhaps give that show a chance it never had with him before. Either he'll like it and keep watching on his own (I aint supplying the episodes for him...) or he'll hate it and move on.

      P2P offers a kick ass opportunity to give people better accesss to shows they never liked before. I *hated* Austin Powers until I watched it with my cousin. He was able to show me what the appeal was of that show. The internet with P2P provides a really nice solution to that problem. They could be using it to increase exposure! Why don't they do it? If they reward me by letting me keep the content if I convince other people to watch it, then they've got a virtually free advertising systme.

      Oh well. Aint gonna happen because they think everybody who downloads it would normally have bought it.

    30. Re:How about... by JudgeDredd · · Score: 1

      Here's where I think the difference is:

      People will rip CDs to mp3 so they can listen to them on the computer. They will do this even if they have no intention of sharing them. It takes no effort to make your existing mp3 directory your Kazaa shared directory.

      But it takes special effort to rip your existing game cd to a sharable iso (or whatever) format for sharing. People don't usually rip to .iso for their own use.

    31. Re:How about... by fishbowl · · Score: 1

      >I'd buy a lot more.

      More than twice as much, if the price were half,
      in my case. It's not the price for me, but the
      perception of value.

      --
      -fb Everything not expressly forbidden is now mandatory.
    32. Re:How about... by geekee · · Score: 1

      What bs. How do you explain all the song sharing on p2p networks then? There's no relationship between the price of the cd and whether or not it's available on p2p networks. Claiming that p2p song swapping wouldn't exist if a cd cost is $5 instead of $20 is silly. Instead of just making up stuff to get karma points, why don't you actually find out what's really going on?

      --
      Vote for Pedro
    33. Re:How about... by geekee · · Score: 1

      For the average teenager, will a lot of free time and a small allowance, the file swapping method is more attractive. You can even argue that it's still faster than driving to the record store and buying a cd. Evidence has also shown that legitimate online music services can't compete with kazaa.

      --
      Vote for Pedro
    34. Re:How about... by Anonvmous+Coward · · Score: 1

      "Claiming that p2p song swapping wouldn't exist if a cd cost is $5 instead of $20 is silly."

      I didn't claim that. I was talking about 'true piracy'. I.e. copying it off to somebody because they don't want to pay for it. P2P doesn't exist so people can save money on CDs, so I don't believe lowering the prices would make it go away. If prices were lower, though, people'd rely less on P2P to find what they want. That's what disturbs the RIAA.

      "Instead of just making up stuff to get karma points, why don't you actually find out what's really going on?"

      I'd suggest you take your own advice. You didn't understand my point (even though othere people did, as hinted at by the moderations I've recieved), so you errored by making assumptions about what I meant instead of trying to get some clarification. So please, don't start rock-slinging, you're living in a glass house.

    35. Re:How about... by MadAhab · · Score: 1

      and taping (or now, making a CD-R) from a friend is also arguably just as easy. so if you were right on the money, the music industry should have died 15 years ago.

      --
      Expanding a vast wasteland since 1996.
    36. Re:How about... by mrs+clear+plastic · · Score: 1

      I have to say that if I were offered about 95
      percent of the movies and music offered by the
      RIAA and MPAA member companies for free, I would
      still walk right past it.

      I went to the movies the other day. They had
      trailers for upcomming features. All of them,
      I was almost embarassed enough to get up and
      walk out, forgoing my admission ticket. I am
      embarassed to be living in the same country that
      has produced this stuff!

      You guys cannot pay me enough to copy this stuff
      off the net! Uggh!!

      MCP

      --
      Cleara
    37. Re:How about... by perkr · · Score: 1

      True, I believe you have a point. It's probably peoples' lazyness that has caused this effect, that and my suspicion that there are far more people interested in music than in computer games. I may be wrong there though.

    38. Re:How about... by ealar+dlanvuli · · Score: 1

      You sir are a pirate, not a "sampler".

      Don't delude yourself.

      --
      I live in a giant bucket.
    39. Re:How about... by DoctorRad · · Score: 1
      Thing is, you've either got to have 80% marketing expense product cost, or pay the same amount in taxes to keep all those out-of-work marketing staff on welfare. Welcome to the post-industrial economy.

      Dr. Matt...

    40. Re:How about... by hondo77 · · Score: 1

      You are grossly overestimating the appeal of video games.

      Sony makes much more off its video games than it does its movies. Nobody doubts the appeal of movies.

      --
      I live ze unknown. I love ze unknown. I am ze unknown.
  3. It would be a mistake to focus too closely on this by PhysicsGenius · · Score: 5, Insightful

    While it's interesting that these companies have internal conflict over which way they want to swing, I'd like to remind everyone that we really don't care what they eventually decide. Corporations do not run the country (yet). We need to decide what's right first and then companies have to adapt to that. Crossing our fingers and hoping that "they make the right decision" is worse than useless, as it puts the decision into the hands of the capitalists.

  4. But what about... by Khakionion · · Score: 4, Interesting

    ...releasing quality products? If the new music rack is populated by the likes of Eminem, Missy Elliot, Dixie Chicks, etcetera, I think I'll try the good ol 'net for my music infusion.

    --
    OMG! Wau!
    1. Re:But what about... by Anonymous Coward · · Score: 0

      I agree here. I'm not buying CD's because there is nothing new out there that I like. Dave Matthews Band is the *newest* thing i'm into. I've got almost all his cd's. I've got almost all of Sublime's cd's, then add on all my hendrix, doors, floyd etc etc. I don't listen to the radio because its the same crap as on MTV, which I also don't watch. It irritates the hell out of me that radio stations pick like 2 songs from some artists and only play those ( and i'm talking about people who have LOTS of good songs.) its fucking b.s, and its all hooked up to the RIAA and the station owners and the fucking money, and I could give a fuck. I'm never purchasing CD's again. I'll d/l the album and send the BAND 20 bucks. That is where I'm at, and I think the bands should support that, and make it easy for us to support them in that way. IMO, bands should just tell recording companies to fuck off, start a website, and charge for access. I *would* pay for that. But I will do anything in my power to NOT add to the wealth of already rich record execs. They are parasites..getting rich off someone elses talent. Hillary Rosen is a leech. Someone do voodoo on her bitch ass.

  5. Re:It would be a mistake to focus too closely on t by Directrix1 · · Score: 3, Insightful

    Corporations do run the country, bud. Hate to break it to you. How often does your representative "represent" you over a large corporation? Never. They have lobbyists and lots of money to contribute. We have a voice and the innate ability to vote for whichever candidate has the most money. Either way corps. win.

    --
    Occam's razor is the blind faith in the natural selection of least resistance and in universal oversimplification. -- EF
  6. Re:It would be a mistake to focus too closely on t by rfischer · · Score: 1

    We need to decide what's right first and then companies have to adapt to that...

    Wait a minute... the way "we" will "decide" is by buying products that these companies market... capitalism, in other words.

    Putting the decision in the hands of the capitalists is exactly what we want to do.

  7. One Word by Anonymous Coward · · Score: 0

    RADIO

    it provides a free demo of many artists, and when i used to buy cds, most of my choices were made from what i heard on radio and mtv.

  8. I Wonder What Mr. Stringer Meant by Snork+Asaurus · · Score: 5, Interesting
    Last night, while doing something else, I flipped on the box for background noise - the channel was CNBC. I heard "muffle, entertainment mumble, corporate, CEO, the street, dividends, blah, blah" - the usual business garble.

    The I heard something along the lines of "What are your plans in light of the undeniable success after Napster of peer to peer file trading software such as WinMX?" The person being queried was Howard Stringer, CEO of Sony Corp. of America.

    His reply was mostly the usual babble about legal means, being proactive in providing what customers want through services such as Pressplay, etc., but the he caught my attention when he qualified the foregoing with the statement: "even though we can chase people with viruses" (and that is a verbatim quote - I wrote it down).

    I asked myself:

    1) Does he just not have a clue what he's talking about?

    2) Have recent legislative and minor legal successes given the recording industry a greater sense of omnipotence?

    3) Is he aware of some gifts that US government about to bestow on his industry

    4) Did he tip his hand?

    5) Is he on crack?

    My guess is mostly #1, a little #2 and some #3.

    --
    Sigs are bad for your health.
    1. Re:I Wonder What Mr. Stringer Meant by Spoing · · Score: 1
      It looks like he was toying with the virus idea back in early 2001. While I hate to give Ziff Davis a bit of traffic, Google came up with only one hit on this referencing an MS NBC article;
      1. Industry leaders perform autopsy on dot-com bustola ( March 11, 2001)

        "... "Sony CEO Howard Stringer, who kept the audience laughing throughout the night with a battery of quips, said, "Right now it would be possible for us, and I've often thought it would cheer me up to do it, you could dispatch a virus to anybody whose files contain us or Columbia records, and make them listen to four hours of Yanni ... but in the end we're going to have to get serious about encryption and digital-rights management and watermarking." ..."

      --
      A firewall can not protect you from yourself. Turn off what you do not need. Do not use the firewall to do your work.
    2. Re:I Wonder What Mr. Stringer Meant by Snork+Asaurus · · Score: 1
      make them listen to four hours of Yanni

      That would be cruel - isn't that how they got Noriega to surrender?

      So his ideas are possibly as little as 2 years old, rather than the more typical 10-20 for that industry - a very forward thinking man. But Stringer did not appear to be joking last night. It's difficult to convey in writing the ambiguity of his use of word "could", but it almost sounded as if he was implying that they thought they had the right to do it, with impunity, but won't. Anyway, it was probably just a little FUDding on his part.

      --
      Sigs are bad for your health.
    3. Re:I Wonder What Mr. Stringer Meant by captaincucumber · · Score: 1

      He's on crack, I think, but not the kind you think. Rather he's on the goatse.cx variety.

      Yeah, I guess that joke makes me a troll, but note that I didn't link to goatse.cx, that has to count for something.

    4. Re:I Wonder What Mr. Stringer Meant by chaddarland · · Score: 1

      Hmmm... If implanting viruses into file-sharing networks was considered a way to protect the digital rights of content owners, would that make anti-virus software illegal circumvention? Or just the relevant updates to that software?

      --
      God is dead -- Nietsche

      Nietsche is dead! - God

  9. Its money baby by soorma_bhopali · · Score: 1

    1) The tech division wants to make money 2) The Media division wants to make money >> If u wanna save money, dont buy music CDs, download free music and use linux :)

    1. Re:Its money baby by Anonymous Coward · · Score: 1
      That's actually a really good point. By putting things together yourself, you an buy from smaller companies that can get by with lower profit margins since they don't have to worry about shareholders. As long as these smaller companies work with open protocols, everything interoperates.

      For example, I'm about to buy a SonicBlue Rio mp3 player because it has open protocols and there's an open source project to support the player with Linux.

      Moreover, the digital commons are growing all the time. Searching google for the genre of music you like provides better quality stuff than you can steal through filesharing. Supporting the people that open their music to the net will provide better results than supporting those who want to manage it.

      I could go on, but clearly the future is relies on an open paradigm. You just can't compete with smaller buisnesses following open protocols who just need to generate enough money to house and feed their employees -- unless you innovate. The funny thing is that almost all the innovations mentioned in the article have already been developed by small startups, not large corporations.

  10. Fair? by samael · · Score: 1

    If something's fairly priced, nobody's going to take the time to copy

    And who decides what's "fair". Because I sure as hell know that the customer's idea of fair is a lot less than what the company's idea is.

    My fair price for the latest Britney album? Free, or even negative.

    My fair price for the next U2 album - proably up to $30.

    Your milage will almost certainly be varying like a motherfucker.

    1. Re:Fair? by PyromanFO · · Score: 2, Interesting

      " And who decides what's "fair". Because I sure as hell know that the customer's idea of fair is a lot less than what the company's idea is."

      The market decides. Hes not saying go tell Sony, "youre going to charge this, and no more!" Hes saying that Sony should give thier customers what they want, while still getting what Sony wants. Theres a balance and its called market price. The problem here is only Sony is getting what they want, the customers are getting screwed.

    2. Re:Fair? by hdparm · · Score: 1
      I'd say your U2||Britney comparison is fair. However, you're forgetting the fact that millions of pre-teenage children convince their dumb parents that ~$30 is also fair price for Britney garbagge.

      Companies know this and they make $30 a CD of you on U2 + $30 a CD of people who fall for marketing bullshit.

      Now guess, do companies lose more money on copying U2 or Britney stuff?

    3. Re:Fair? by Anonymous Coward · · Score: 0

      yup, and the muzak industry has gone for $30 a disk, and the customers disagree, but luckily for the music industry they can blame it on napster, price increases, price FIXING - I SAID FUCKING PRICE FIXING WHICH IS NOT CAPITALIST ITS CRIMINAL - and recession and deflation be damned. yup, it's all napster's fault. the RIAA is less capitalist than communist china at this point.

  11. Too slacker for my shirt? by Hubert_Shrump · · Score: 1

    Uh... Lessee...

    Agressive mega-corp finds that it has conflicting interests in its 300 year plan to become the most powerful single hive-mind on Earth.

    It's interesting in a sever-the-corpus-callosum kinda way, but really. Am I being so slack to say I don't give a @#%$ what 'problems' huge corporations have?

    --
    Keep your packets off my GNU/Girlfriend!
    1. Re:Too slacker for my shirt? by Anonymous Coward · · Score: 0

      You should care if you ever plan to live off of retirement savings, as it will inevitably be closely tied to the decisions made by corporations large and small. I'd like to retire when I'm 55, and to do so I need to understand where and what to invest in. Stock brokers are frat boys with too much personality to run a bank. No thanks.

  12. Sony Mini Disc Data by acomj · · Score: 1

    Sony has those mini-disc. They used to have computer drives for them, but supposedly the music division balked for fear of pirating. When they came out the 120 or so meg per MD at 2$ was very good price/size.

    They also released a 1.? Gig version of MD for those MD video camera, which again would have made a good floppy replacement.

    Music MDs have a very primitive digital to digital copy protection scheme.

  13. Profits by Cire · · Score: 1

    Sony's technology divisions (PSX, DVD players, etc.) account for a much larger portion of their earnings than their content (mainly sony music).

    It would seem to me that the only solution Sony would be interested in would be one that does not impact on their profits. If they were to install some kind of DRM into (for example) TV's that wouldnt let you skip commercials, they would be (rightly so) worried that people would start buying other brands.

    Cire

  14. Just wondering by Anonymous Coward · · Score: 0

    Is Wired owned by Microsoft?

  15. One casualty of this is battle is ... by jdclucidly · · Score: 4, Interesting

    One casualty of this is battle is the Sony NetMD line of MiniDisc recorders. In fact, the entire MiniDisc media has been crippled by Sony just to satisfy their DRM needs.

    The NetMD line of players/recorders allows you to record at 44kHz quality on the road. This is great for radio jounalists because you can buy a nice battery powered mic and record interviews wherever you go. The packing for the recorders fails to mention that while you can transfer 'songs' to and from your computer over the digital link, it explictly denies you the ability to import audio that you recorded from a microphone -- presumably to prevent digital bootlegging. So, to protect against the %1 of people that might use the NetMD illegally, the other 99% of us lose out.

    There are allot of people pissed about this and there's a petition to Sony to get this featured turned on via a software update here. Over 2,600 people have already signed it. Go sign it too!

    As for the MiniDisc media, if Sony would stop charging ludicrous licensing fees for players, we'd finally have a nice, caddy protected, alternative to CD-Rs.

    1. Re:One casualty of this is battle is ... by escher · · Score: 2, Interesting

      I use minidiscs to record audio for low budget films. The initial reason as to why I went MD was that I thought I'd be able to transfer the audio over to my computer digitally.

      I still have to record via analog thanks to these fuckwit decisions. I'm a content creator, you bastards! And no, I'm not going to plunk down the cash for the absurdly expensive MD recorders that have a digital out. I can't afford it. Less money for Sony, more frustration for me.

      After working for a few big companies I discovered that they are all run by monkies on crack. Depressing, really...

    2. Re:One casualty of this is battle is ... by Anonymous Coward · · Score: 0

      All but the lowest-end home MD decks have digital (SPDIF/TOSLINK) output, for example this one; no, it's not as convenient as USB would be and it's still only real-time, but these non-pro decks are inexpensive and get the job done.

    3. Re:One casualty of this is battle is ... by demonlapin · · Score: 1
      Here's my ideal scenario, the one that should have happened:

      1995-6: Sony says "dang, this isn't taking off. Time for a big marketing push and some severe price drops." MD-Data drives released (at reasonable prices) which are capable of reading and writing music discs as well (although they lack real-time recording capabilities).

      1998-9: Sony notices that MP3 is taking off like wildfire. With an eye to the future, and hoping to retain control of the next generation of lossy encoders, they adopt licensing terms that permit free use of the ATRAC and ATRAC3 codecs in non-commercial players and encoders. MDLP Walkmen announced to take immediate advantage of this, with NetMD promised down the line. MD-Data drive owners get a firmware update allowing them to write ATRAC3 as well as standard ATRAC to discs right now.

      2000: Using advances in MO technology, Sony announces next-generation "MD+" devices that store 650 MB rather than 140 MB. (Yes, this tech exists, but not much outside Sony's labs.) At the same time, they introduce the unrestricted NetMD portable devices, which function essentially like ATRAC-only hard disks.

      Really, an aggressive marketing and pricing scheme for MD-Data could have obviated the need for NetMD at all.

    4. Re:One casualty of this is battle is ... by ll1234 · · Score: 1

      Except MD Data was slow, slow, slow. 150KB/s continuous, 2.5 MB burst (from minidisc.org). I think people wanted something a little faster than a 1x CD-ROM. But hey, it makes for great security these days since almost no one can read the MDs.

    5. Re:One casualty of this is battle is ... by demonlapin · · Score: 1
      Yeah, it's slow. Ever used a parallel port ZIP disk? That's even slower, but it was pretty popular.

      It's not as though they wouldn't have seen improvements over time.

    6. Re:One casualty of this is battle is ... by Anonymous Coward · · Score: 0

      My archos recorder 20 does MP3 recording from line into MP3 directly. No DRM. It is a 20GB (hackable for larger) USB2.0 hard drive running FAT32.

    7. Re:One casualty of this is battle is ... by AnalogDiehard · · Score: 1
      As for the MiniDisc media, if Sony would stop charging ludicrous licensing fees for players

      Remember the Beta/VHS wars? Sony lost the war, largely because they charged a ludricious fee for licensing the Beta format.

      You'd think Sony would've learned that lesson by now.

      --
      Eternity: will that be smoking, or non-smoking? I Corinthians 6:9-10
    8. Re:One casualty of this is battle is ... by Sri+Lumpa · · Score: 1


      So let me get this straight. Sony sells you a device to digitally record audio data but cripples it so that you can not transfer it anywhere else and must always stay in the device where it was recorded? It sounds utterly stupid and useless. It borders to false advertising IMHO.

      --
      "The obvious mathematical breakthrough would be development of an easy way to factor large prime numbers." Bill Gates,
    9. Re:One casualty of this is battle is ... by Anonymous Coward · · Score: 0

      No, you can get the audio off, but only in real-time. They don't allow high-speed audio uploads via USB.

    10. Re:One casualty of this is battle is ... by kliment · · Score: 1

      The parallel port zip disk was filling a niche in the market. There was, for example, no other practical way to transfer a big pile of documents from an old laptop to my newer workstation several years ago. No pcmcia, no networking, no cd. It was either Zip or serial port. The zip was an obvious choice. Now, with all my machines networked and the laptop gone (I was only keeping it because of those documents, it was a 486, but it served me well) the ZIP sits in a corner of my desk. I still use it sometimes to transfer big files from a friend's machine on the other end of the city when my alternative is the guy's modem connection. The zip has reasons for its popularity. A device that works on ANY machine with a parallel port and stores a decent amount of data was then an alterantive for floppies. On a machine that cannot support a burner, this is an only option.

  16. Pron.... by oliverthered · · Score: 1

    No seriously, look at the porn industry.
    There's more free porn than you could throw a stick at, but there are still pay sites and I presume they do quite well (or not too bad).
    There's not that much porn on Kazaa and that that is is more freek show than porn!

    Porn is the uncrowned king of distributed media.
    Maybe the RIAA and MPAA should swtich to porn grove and when hary meet sally.

    --
    thank God the internet isn't a human right.
    1. Re:Pron.... by rednaxel · · Score: 1
      No seriously, look at the porn industry.
      There's more free porn than you could throw a stick at, but there are still pay sites and I presume they do quite well (or not too bad).
      There's not that much porn on Kazaa and that that is is more freek show than porn!

      Porn is the uncrowned king of distributed media.
      Maybe the RIAA and MPAA should swtich to porn grove and when hary meet sally.

      I would say it's a lot easier to produce porn than music (or games). All you need to do is to hire a couple of chicks (and maybe one guy - if you can't find one willing to work for free), a digital camera and a web site. Get them fscking once a day (1-2 hours of work) and have new content daily. Increase your staff and get even more new content every single day!

      --
      If you can read this, thank an english teacher.
    2. Re:Pron.... by oliverthered · · Score: 1

      If that's all you had to do there would be millions of geeks out there who would never look at porn again.

      All I have to do to produce music is get an empty cake tin, and a microphone for my PC and record hiting the cake tin.

      Seriously, there's a lot of porn done with studio lighting etc... a bit more than a digital camera and a couple of chicks.

      --
      thank God the internet isn't a human right.
  17. you're not seeing the shades of grey by PCBman! · · Score: 5, Insightful

    Actually he's not delusional, I guess you missed the slashdotted article about the RIAA report that only saw 10% of people NOT buying CD's AND downloading. I would assume that 90% of the people surveyed were either not buying CDs or downloading, or they were downloading AND buying CDs.

    I don't want to JUST preview music, I want to buy it, albeit, one track at a time, if they sold me an mp3 in 320kbps for $1, I'd buy it--even before napster, they were lucky to get one CD out of me per year. It's all about selling a product with a value people will pay for.

    I'm not saying people don't like getting stuff for free, they do, but you're even more of a pessimist than me if you believe people will steal from you at EVERY opportunity. People are generally willing to pay a fair price for a fair product. Of course, if you try to fleece people out of their money, they'll strike back, and they don't need to do so in a legal manner. Remember, if you're too busy watching for the knife in your back, you'll just find it in your chest one day.

    --
    So, when's lunch?
  18. Two Words by Anonymous Coward · · Score: 0

    RADIO SUCKS

    1. Re:Two Words by Qrlx · · Score: 0, Offtopic

      Commercial-free, listener-sponsored radio ROCKS. The regular kind does indeed suck.

      WFMU for example will rock your socks off.

    2. Re:Two Words by Anonymous Coward · · Score: 0

      Video really did kill the radio star.

      Just look at the hotness of artists now compared to the 60s and 70s. Then look at the quality of music now compared to the 60s and 70s.

      Frankly, I'm not pleased with the tradeoff.

  19. Comming to theonion soon ... by ReidMaynard · · Score: 4, Funny

    Sony sues Sony; Sony couter-sues (AP) ....

    --
    -- www.globaltics.net

    Political discussion for a new world

    1. Re:Comming to theonion soon ... by Anonymous Coward · · Score: 0

      No wonder why Sony product are such high price piece of junk.

  20. This is happening more and more... by Anonymous Coward · · Score: 0

    Why can't they get it straight?

    Hey when you are done slashdotting, check out the chics at Pajonet.com

  21. even though... by PCBman! · · Score: 1

    Even though the only real decision makers are the executives and board of directors?

    --
    So, when's lunch?
  22. Re:That sounds fair to me by glesga_kiss · · Score: 3, Insightful
    I'm only one person while a corporation is composed of hundreds or thousands of people.

    Corporations are not people, they are a corporate entity. They do not have the same rights as people. When was the last time you saw Microsoft walking down to the polling booth to place their vote?

    Of course they should get a bigger say, this is a democracy.

    This has to be a troll, a) because they shouldn't have any say, and b) because we don't live in a democracy. Voting once every five years for one of two viable candidates based on information fed to you by publicications and media who have interests in one or the other is certainly not a democracy.

    "Will of the people" my arse!

  23. What about Palm? by los+furtive · · Score: 2, Interesting

    Remember how 3Com split Palm into it's own company, I can't think of any other examples, but this one fits perfectly.

    --

    I'm a writer, a poet, a genius, I know it. I don't buy software, I grow it.

    1. Re:What about Palm? by questionlp · · Score: 1

      Which they acquired when they bought USRobotics (which has spun-off again, no?).

      HP spun off Agilent. Lucent spun-off Agere and maybe another one.

      Then you have AT&T trying to break itself up into three, but then AT&T Broadband got eaten up by Comcast.

    2. Re:What about Palm? by 2short · · Score: 1

      I remember that they issued a tracking stock representing 10% of Palm. As far as I can tell 3Com still owns the other 90%.

      I found it particularly amusing during the dot-com days that Palms market cap was several times 3-Coms.

  24. temporary problems will disolve by visionsofmcskill · · Score: 5, Insightful
    While this issue is certainly a bone of contention in the midst of mega-conglomerations, it is only a temprary issue that will be reolved quickly. The main point on the agenda is profitability.

    If the Sony corporate heads can't find a resolution to deal with DRM within the company in such a manner as to remain profitable, it will remove the un-profitable segment.

    While the music industry (RIAA, MPAA, etc..) is attempting to bring the cross to bear against IP infringments onto tech comapnies, evryone knows that DRM is ultimatly impossible. Not in that you cant make it hard for copiers to copy and distribute them, but in that if someone can hear/see what you have to show them, they can ultimatly record it, or re-create it.

    Given that fact, most mega-conglomerates with .02 cents of knowledge will tell their music arm to re-adjust it's buisness model and become profitable, mainly because the fault does not lie with the technological arm.

    It's highly unlikely any major company is going to tell it's profitable tech arm "stop making computers consumers like and buy" because they dont support their less profitable media arm.

    something has got to go, the inherent un-balence between arming consumers with weapons that will hurt your own sales of other items has placed the mega-corps into a situation in which whey WILL have to choose what to drop.

    DRM is not gonna cut it, file-sharering software will just incorporate DRM crackers or other such means to turn Copy Protected media files into standard media files (that seem to be non-commercialy owned).

    Consumers will rebel against measures that are any more intrusive than behind the scenes protection, so you can forget about selling completely crippled systems..

    As such, you can choose between forcing your tech arm to stop making computers that ultimatly can hurt sales in your media arm. Or you can tell your media arm to shape up or ship out.

    Lastly, when you look at the nature of music and video, in that the average home user is now able to make their own easily distributed movies and music with relative high quality, you can see that the RIAA and MPAA are under attack from more than just piraters, but by home users making music themselves. The average joe (like me) can record his band for under a grand. If im not a "aucoustic" band, or musician, then my expenses vs. quality improve ten fold.

    producing high quality music (without Microphones and other analog/acoustic gear) is CHEAP, and even live sounding music isnt too much more

    As such i think we may be going full circle back into an era that resembles the times when local acts were the biggest shabangs, And THIS is what is ultimatly the killer of the music industry.

    the film industry may not be too far behind. Although the average Joe is NOT gonna leatn maya or other film and 3d software at the drop of a hat, nor have those fields improved Enough to make their use quick and easy, they are on the road to becoming quick and easy. I dont see holo-deck style easy of creation in our near futures... but it isnt THAT far off (im talking about the ability to make chracters and render them interactivly with chracteristics almost on the fly, not about creating a full 3d environment around you)

    once people can start making their own stories &or imaginations take shape with ease... the film industry will be having some serious problems.

    ultimatly the buisness aspect to selling OTHER peoples content creations will suffer... and it should... the only reason these industries are so enormous and powerfull is due to the in-accesibility of the equipment they use to the average joe. I've been in several LOW-budget films and the expense for high-quality is greatly reduced from what it was due to tech. and this is only going to continue. As smaller firms (even individuals) become increasingly capable of creating competing quality products, the big guns will find themselves being shredded by hosts of little pirhanna's.

    It's gonna take a while before these changes sweep through, and the old fuckers will fight it to the end, but ultimatly tech HAS been bringing increasing power to the end user. Go pick up ProTools Free from www.protools.com , or iMovie from apple to see the beginings.

    now if you were a mega-corp... what would you choose?

    --Enter the sig--

    --
    --Idiots, Every single one of YOU, A flaming mass of conglomerated morons, hey wait a second, isnt that how RAID works?
    1. Re:temporary problems will disolve by acedtect · · Score: 1

      I agree it's a temporary problem but I differ in how it will dissolve.

      I think watching how Sony manages this deal will indicate somewhat reliably how the whole issue will play out in general. At Sony you have a microcsm of the the whole issue but it's contained within the corporate structure which will force the issue to get resolved much faster than in the public where governments and their ignorant (non-pejorative use there, just a fact) representatives slow things down while they try to understand what the hell is going on.

      BOTH sides of the business are profitable and Sony will want to maximise them both, so you'll see them figure out how to deal with the localisation of media production into small hands and the ease of copying of digital media. They may do it stupidly but that's sort of what I expect from the public battle as well.

    2. Re:temporary problems will disolve by Sloppy · · Score: 1
      evryone knows that DRM is ultimatly impossible. Not in that you cant make it hard for copiers to copy and distribute them, but in that if someone can hear/see what you have to show them, they can ultimatly record it, or re-create it.
      I used to think that. But then I read about a DRM system that worked.

      ;-)

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  25. Question for Sony: by Ty · · Score: 0, Redundant

    Am I in trouble if I'm copying Celine Dion's newest album (courtesy of the l33t marker DRM-breaking technology), on my SONY CD-burner, using SONY blank CD-R media?

  26. Quote from the article... by sdo1 · · Score: 1
    So pressplay subscribers haven't even topped the 50,000 mark, while Kazaa, the leading file-sharing service, has 60 million users.

    That seems to imply that Pressplay subscriber numbers is at least in the tens of thousands. Quite frankly, I'm shocked that it's even that high given the restrictions they put on the use of the content.

    -S

    --
    --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
    1. Re:Quote from the article... by Anonymous Coward · · Score: 0

      It's not just their content restrictions, but the fact that noone outside of the US can even sign up.

      Oh, and on top of the content restrictions, they seem to only offer "portable downloads" at 128 bit. Heck, the first time I ripped my collection years ago I used 160, then I redid it at 192 when I got a bigger hard drive that could hold it... I hate downloading songs at 128, so why would I want to pay for them at 128?

  27. It boils down to... by loteck · · Score: 4, Insightful

    Once again, as seems to be the case with so many of these kind of problems that involve the digital world, i believe the real problem is summed up on the last line of his (excellent) article:

    If only it didn't depend on a bunch of music men who've yet to wean themselves from shiny plastic discs.

    I think the real underlying issue that confronts us is simply a lack of understanding of the technology that is becoming available. These men have grown up in a "shiny disk" world, and judging by their actions i cannot help but think that they are fundamentally (and by no fault of their own) incapable of understanding the kind of societal and logical changes that are taking place as technology allows us to manage content more freely.

    In short, i would predict that these problems wont really find resolution until the next generation that has grown up with this technology takes over the big businesses and is able and willing to do what they known needs to be done.

    I just hope we can survive until then.

  28. Anyone else? by rzbx · · Score: 4, Interesting

    Has anyone else thought about the fact that maybe we would be better off without copyright? Seriously, one moment please, don't mod me down so fast. Sure, we've lived with copyright laws for a while now, but what would it be like without them? Have you ever REALLY thought about it? I've done a lot of thinking and a lot of reading (I do mean a lot). I know most people don't even question it, they just question one thing, the work put into it. Yet ask yourselves this, do the construction workers, road builders, etc. get payed royalties everytime you drive down the road or use your house? How come we treat information like this?

    --
    Question everything.
    1. Re:Anyone else? by The+Only+Druid · · Score: 2, Interesting

      Yes, we've thought about it, and anyone who's somewhat rational has realized that everyone loses without copyrights.

      Consider, first, the Marxist system of communism. Therein, no one profits: they are all given the same [insert thing of value here, i.e. food, money, etc.] no matter how they perform. As a [proven] result, the culture stagnates economically, socially, artistically and scientifically.

      The elimination of copyrights is tantamount to instituting a Marxist model of economics of intellectual property. If I'm a producer of intellectual property, all my money comes from one of the following, Wages, Royalties and Contractual fees.

      Wages refers to the idea that I may be simply receiving an hourly fee for my work. This is like a company code-writer. They're already shown to feel less motivated than when they have a stake in their creations.
      Contractual Fees are akin to wages, and are a lump-sum payment for a peice of intellectual property.
      Royalties are repeating payments each time a peice of intellectual property is employed. This is the best way to attach value to intellectual property, as you receive payment directly in correspondance to value of a product. Thus, the incentive to create new intellectual property is the greatest in a royalty system.
      The ability to negotiate these fees is key for producers of intellectual property, as they can only negotiate the value of that property based on their ability to control the use/reproduction of it. If you cannot contorl that use/reproduction, then why should anyone pay for what you created? They can just use it for free.

      --
      "Stumble before you crawl"
    2. Re:Anyone else? by demastri · · Score: 1

      This is ridiculous.

      In your examples, the carpenters or construction workers don't get royalties, being paid fairly for their labor according to their appropriate contract, but the OWNERS of the property being discussed (home developer/builder through purchase price, and gov't for roads through taxes - this is actually more complex, but sufficient for this discussion) who you likely meant to reference, absolutely get paid for their capital investments and risks of allocation.

      There's a fundamental difference between IP and real property. The ownership of real property can be managed and transferred easily through the use of titles, physical possession, etc. The ownership of IP, control and use of which belogs to the original owner - just like in the cases you cite - cannot be managed this way. Copyright law (in this sense, of ownership and use) for IP is a perfect analog to contract law for real property.

      In this light, your statement is equal to "Why not get rid of contract law, and let everyone own everything they want?" and is just as ridiculous.

      - John

    3. Re:Anyone else? by swisener · · Score: 1

      Because information is easy to copy and distribute. What incentive would a novelist have to write if there were no copyrights? They'd be better off as a construction worker, and the world would be worse off. Seems pretty cut and dried to me...

      --Steven

    4. Re:Anyone else? by Rick.C · · Score: 1

      Presumably you paid lots of moola for your house and you expect to have exclusive rights to it. (If you don't expect exclusive rights to your house, you might just find Cowboy Neal at your door with his suitcase...)

      As for the roads and bridges, those were built at public cost by the lowest bidder. Would you like to have your music produced under these same terms?

      Rick.C

      --
      You were 80% angel, 10% demon. The rest was hard to explain. - Over The Rhine
      "Math in a song is good."-Linford
    5. Re:Anyone else? by MamasGun · · Score: 1

      Yes, but copyrights, in turn, must be rational. It is a pity that the Founders trusted the guh'mint enough to not codify into law what they meant by "limited times" in the Constitution. They had much more faith in human rationality than was warranted.

      Copyright was not meant to last forever. Up until the extensions that have been rammed through Congress, Copyright lasted about a generation. Just enough to reward the Copyright owner for their efforts, not enough to keep Copyrighted works out of the Public Domain after a reasonable time. As it is, I will not live long enough to see "Rhapsody In Blue," "Brave New World" and "Little Caesar" enter the Public Domain. :P

      Then again, you've probably heard this all before so I'll shut up.

      --
      "But you've already got a DVD. It lasts forever....In the digital world, we don't need back-ups..."
      -- Jack Valenti
    6. Re:Anyone else? by argoff · · Score: 1

      I totally agree with you,
      first if getting rid of copyrights causes an artist to loose say 10K worth of 'ip' but gains them access to over a billion from everyone else - then that is a net gain for everyone. And that's the whole problem - information doesn't have natural limits in supply and demand like comodoties do, to treat it like is does is just stupid and maybe even fradulent. If the govt gave ford a monopoly on making cars, and then called it free market because they could license that right to other people - people would call it a fraud. Information should be less regulated than comodities, not more regulated.

      second, another thing is that 'incentive' is just an outright terrible foundation for a property right. The moral and historical foundation of property derives from the fact that property has natural physical limits in supply and demand. I may not have an incentive to grow strawberries unless I can plant them in your yard. You may not have an incentive to produce cottin without owning slaves on the plantation. And it is biased because it ignores the other side, I may not have an incentive to manage networks unless I can freely copy information. This attitude that artists are gods and everyone else who has a need or desire to copy is a piece of shit is just dishonest.

      which brings up the third issue. Copyrights don't help artists or creators. For every one that makes it big, 9999 artists who are just as good are living in near dirt poverty. and the overwhelming number of copyrights are held not by artists but large companies.

      Also, look at all the effects related to copyright. the failures of hollywood culture, the price gouging of college text books that would be cheaper to xerox, all the anti-trust microsoft issues, the stunning and often unpredicted success of technologies like Linux, apache, if not tcp/ip and the internet itself.

      Finally, things are changing fast. Information is just too easy to copy or manipulate, in order to effective controll any of it - they will half to try and controll all of it.

      I advise that you read up on the civil war and all the arguments they used to support slavery as a false property right, the incentive argument, the I put money and effort into getting them argument, the you are a thief if you steal one argument, the look at the great financial success of the plantation system argument, the it's a form of property - not a form of controll argument, the it's legal and therefore moral arguent. It is amazing how history repeats itself, even down to the stock fallout of 1850, even down to the plantations trying to microregulate all the other industries and states, Just as it hit the fan then, it is hitting the fan now - watch out.

    7. Re:Anyone else? by Paul+Fernhout · · Score: 3, Insightful
      On the issue you raise of motivation, two points.

      First, the law of large numbers over the internet (like with GNU/Linux) shows people will create without direct financial incentive.

      Second, this article:
      http://www.isi.salford.ac.uk/staff/ab/motivation.h tml discusses how scientific studies find that for creative intellectual work, reward is often no motivator, and can in fact have negative effects on performance.

      From the article: "The recognition that rewards can have counter-productive effects is based on a variety of studies, which have come up with such findings as these: Young children who are rewarded for drawing are less likely to draw on their own that are children who draw just for the fun of it. Teenagers offered rewards for playing word games enjoy the games less and do not do as well as those who play with no rewards. Employees who are praised for meeting a manager's expectations suffer a drop in motivation."

      So, while what you say is essentially the "conventional wisdom" of our age, it may well not be correct as regards creative works.

      Also, note that in order to enforce copyright in the internet age, we will need something equivalent to scope in the "War on Drugs" as a "War on Sharing". The War on Drugs effort keeps about a million U.S. citizens behind bars at a direct cost of 20-40 billion dollars a year. And before you laugh and say it is not possible for a million people to be locked up for using Napster and Kaaza, consider that people in the 1960s would have laughed at the notion of a million americans behind bars for non-violent drug offenses in the 1990s -- but it happened.

      For the same amount of money, the U.S. could provide grants of $100K a year to around 400,000 artist, musicians, and writers who make their work freely available.

      So, you choose which society you want to live in, however you label some part of it. And by the way, copyrights are monopolies, and monopolies are generally considered anti-capitalist.

      --
      A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
    8. Re:Anyone else? by The+Only+Druid · · Score: 1

      There's an erroneous comparison to be made between imprisoning people for drugs (a criminal violation currently) and for violating copyright (a civil violation). You cannot be imprisoned for violation of civil law, only criminal law.

      I'll grant you that many people, myself included, believe drugs should be regulated under civil and not criminal law, but that's besides the point.

      Moreover, I have a strong disagreement with the article you link to. While its clearly true that children engage in activities more due to personal interest than reward, it is _not_ shown to be the case with professional artists. Again, your example about the internet and open-coding is an erroneous one. If GNU/Linux was producing music, that would be one thing. You'll notice, its not, and neither is its community. Part of that is the membership: there may be fewer artists, etc. Another part is the distribution system: it may be too difficult for any such musicians to be getting proper attention. The final part though is that creative goods which have no practical result (thus excluding programming which is often pragmatic, and thus including onyl aesthetic arts such as music or painting) are not at all demonstrated to be negatively affected by rewards. All the contrary, our everyday experience indicates that the more you pay an artist, the more they are enabled to craft.

      --
      "Stumble before you crawl"
    9. Re:Anyone else? by FredGray · · Score: 1
      There's an erroneous comparison to be made between imprisoning people for drugs (a criminal violation currently) and for violating copyright (a civil violation). You cannot be imprisoned for violation of civil law, only criminal law.

      Until a few years ago, you were right about this. However, with the advent of the NET (No Electronic Theft) Act, copyright violation is under many circumstances a criminal act as well.

    10. Re:Anyone else? by zsau · · Score: 1

      Anyone can build something according to a design. Not anyone can make that design.

      --
      Look out!
    11. Re:Anyone else? by Paul+Fernhout · · Score: 1
      As another reply pointed out, copyright violation is now a criminal act, starting for around copying $1000 of retail valued materials (say, 100 CDs, or distributing 1 CD to 100 people). So, there are already millions of such criminals in the U.S. The statute of limitations is a few years. These people can be put in prison for several years and directly exposed to the risk of death from prison rape by those with AIDS. So, essentially, you risk execution by using Kaaza, just as you risk execution for marijuana use. Consider that RIAA just won a suit forcing Verizon to disclose the identity of a Kaaza user.

      In any case, whether copyright violation was currently criminal or not, my point is that copyright will need a huge enforcement similar to the scope of the war on drugs given the ease of making copies on the internet. That enforcement effort will have a high cost which someone will need to pay. If it is the average tax payer, then it is a subsidy to copyright holders.

      As far as the motivation of artists, you do point out a limitation in the studies referenced in that article in that they were mainly not about professionals but about average human subjects in lab studies. Sounds like a good place to do more research -- although it is always hard to do academic style research on professionals.

      Still, if what you argued was true, why are so many artists not financially successful in life but keep doing it anyway? I'm not saying this is the way it should be, but it points to the fact that artists create for other reasons than financial rewards (even if financial rewards also have an effect good or bad).

      Consider that 99%+ of artists and writers and musicians and photographers in the U.S. do not earn a living at it (novels in drawers, singing at a cafe or with friends, making digital paintings for home display, photographic retouching for home use) and so these artists lose out on a rich public domain which might make their spare time art more enjoyable and productive. Consider how the serious threats implicit in recent copyright criminalization combined with broad interpretation of copyright (covering even similar works) may have a chilling effect on these 99%+ of artists sharing their work, growing in creative expression building on inspiration from media they see around themselves, and in general on people sharing with each other.

      Also, there are people giving away their own music for free on the internet -- poke around at: http://www.mp3.com/

      However, consider this: frequently an artist's creativity is stifled by being rewarded. That is, publishers and fans generally want more of the same and are willing to pay for it. It takes a very disciplined person to turn this cash down and move into a new area and take creative risks -- but being a good artist often requires this sort of reinvention to keep fresh and growing.

      --
      A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
    12. Re:Anyone else? by rzbx · · Score: 1

      "Anyone can build something according to a design."

      Are you sure about that? I'm not very sure I could look at a processor design and build it. For that matter, I can't play a song by looking at the notes or build a skyscraper looking at the blueprints or any number of other things I neither learned how to do and/or have no equipment and tools for.

      --
      Question everything.
  29. We must heed principle; let them heed profit by SnakeStu · · Score: 4, Insightful
    It's important to realize that the balance between the benefits to the public and the benefits to the copyright owner will not be achieved by allowing the copyright owner to decide what balance is best for their bottom line. We cannot sit idly by and hope that Sony et al decide on a balance that will be acceptable to us; instead, we must focus on convincing the government to abandon their imbalanced support of such corporations and start doing what is right to achieve a balance for all concerned. (I didn't say this would be easy, so don't bother with the "too late" comments.)

    It's sad to see that some replies in this topic have shown obvious confusion regarding the role of corporations versus the role of government. In the US, the Constitution was not written by corporations, nor should amendments (codified or de facto) be done so. That corporations have more sway than Joe Public is a given at this time, but times change and so do governments, for good or ill. The more apathetic the public, the more "oh, it's too late, they're already in power anyway" responses, the more things will decay in favor of the corporations. The more motivated the public, the more politicians will put the input of corporations in a subordinate (or at least equal) position compared to the input of their voters. Corporate money can only buy an election when the public is apathetic and detached from the political process, and thus open to glitzy ads. If there is a strong sentiment in the public to reduce or eliminate the effect of those ads, then the role of corporate money is also reduced or eliminated. In the end, the vote counts, not the advertising.

  30. Worthless ... by ultraslide · · Score: 1

    All your media are belong to us ...

    I've said this before and I'll say it again, the only media companies to succeed in the coming years are the ones who either:
    a)Have a government sanctioned monopoly.
    b)Accept that media is worthless and move on.

    People will copy ,steal ,and distribute your media no matter how hard you try to lock it up.
    Get over it and offer products, not control mechanisms.
    TV is free, but people pay for Cable/Satellite.
    Radio is free but people pay for XM.
    Mp3s are free but people will still pay for CDs if they are fairly priced ($20 aint fair for 10 year old technology).
    In addition, people would pay for an online music service but the record companies have fucked music publishing to the point that no-one will play ball for fear of betting screwed , again.

    the 'slide :-)

    --
    "Corporate rock still sucks. What are you gonna do about it?"
  31. Problem??? by Ty · · Score: 2, Funny
    I only see profit!!

    1. Sell customers CD-Burners to copy copyrighted material.
    2. Upgrade DRM technology on media to prevent media copying.
    3. Sell customers NEW CD-Burners to bypass DRM technology (try harder than markers...)
    4. Go to step 2....

  32. Ambidextrous? by autocracy · · Score: 1

    The left hand washes the right hand, but only because it doesn't know what the right hand has been doing...

    --
    SIG: HUP
  33. Better idea by ShatteredDream · · Score: 3, Insightful

    How about offering a complete end-to-end production setup that is streamlined to be able to produce small quantities of merchandise, records, etc for artists who aren't signed? How about investing in companies like PropellerHead so that they can guide the development of production tools so that they can reduce studio costs and eventually build "micro studios" that can be fit inside a garage. Imagine say..... TimeWarner buying PowerMacs, installing a lot of great production software and building quality, low-cost "studios" for artists they sign. That'd be a hell of a lot less expensive than plunking down $250K-$1M for studio time. All they'd have to do is get the band's best cut, send it to the techs to clean it up and press it. They could probably save as much as $800K per record or maybe even more doing that.

    The first big label to say, "no no, technology is ou--my--friend" is the going to be the one that owns the industry. I'm surprised that one of these labels hasn't already contact Steve Jobs and asked him to help them "get with it" technologically. You'd think that at least one of the bean counters in accounting would realize that personal computers could greatly cut down on their cost. DRM isn't good for labels, versatile PCs which can hold lots of cheap digital music are. They should be offering free 64-96k oggs as samples and downloads for say.... $.75 a song for a 350K VBR Ogg or MP3. I give my friends music occassionally to sample, but if the labels did that, I'd just tell them to stop being a cheap mofo and buy the damn downloads.

    1. Re:Better idea by joshsisk · · Score: 2, Informative

      Imagine say..... TimeWarner buying PowerMacs, installing a lot of great production software and building quality, low-cost "studios" for artists they sign. That'd be a hell of a lot less expensive than plunking down $250K-$1M for studio time. All they'd have to do is get the band's best cut, send it to the techs to clean it up and press it. They could probably save as much as $800K per record or maybe even more doing that.

      The problem with this idea is that, under the current system, the recording costs come out of the band's share of income from the record. In fact, all expenses do, including marketing. Thus, the label has no incentive to save money, since their cut is unchanged.

    2. Re:Better idea by Ben+Hutchings · · Score: 1

      This is true for the money-making bands. The majority of signed bands never make enough money to put the label or themselves in profit. By cutting the recording costs the label can cut their losses on these bands. (Also, by selling individual songs at a fair price, they might increase sales for bands that produce the occasional popular song but not enough to make popular albums.)

    3. Re:Better idea by Superfarstucker · · Score: 1

      people seem to think that everything but mega pop production records have like no time involved in the actual mixdowns and stuff?? wrong, except your most raw albums there is tons of production work done on the album before its released, and quite frankly, most bands dont have the competence to set up and manage their studio.. thus the audio engineer fits right in with the current pop/alternative market... the problem arises for these guys when it comes to electronic music, because recording and production is all done by the *SAME* person, thus cutting out all that time youd normally have to pay an audio engineer for, there are exceptions but not many. You would be amazed by the vastness of the electronic music market, because its *not* expensive at all to produce... contrast this by pop records.. no substance, but expensive as HELL to produce...

    4. Re:Better idea by miu · · Score: 2
      I give my friends music occassionally to sample, but if the labels did that, I'd just tell them to stop being a cheap mofo and buy the damn downloads.

      The problem remains that you need to trust all participants to play by the rules. One person violates that trust and your content becomes valueless.

      --

      [Set Cain on fire and steal his lute.]
    5. Re:Better idea by Piquan · · Score: 1
      I'm surprised that one of these labels hasn't already contact Steve Jobs and asked him to help them "get with it" technologically.

      I don't know whether or not Apple can do that... they've got a non-compete agreement keeping them out of the music production industry. (This is one reason why one of their first sound samples was called "sosumi", aka "So sue me".)

    6. Re:Better idea by joshsisk · · Score: 1

      True, but losses on one band's record can be deducted from the tax owed on a money-maker.

      I do agree they should sell individual songs, or at least singles. If I recall, the single market died around the time Vanilla Ice's label pulled the Ice Ice Baby single from the shelves, because they realized that people would buy the full album just for that song. I miss singles.

    7. Re:Better idea by Ben+Hutchings · · Score: 1

      I think the production and distribution cost of singles is just too expensive for them to sell in the masses they used to. If they were sold online in a readily usable format at a fair price I dare say the singles market would gradually recover to its former size. At the moment the major labels are probably scared to make such a change.

    8. Re:Better idea by joshsisk · · Score: 1

      I sell vinyl singles, and can wholesale them for $2.25 and make a small profit. (And this is with a print run of just 1000.) I think they could definitely make money of singles if they wanted - the issue is if you have a full-length with only one good song, you do not want to be selling that song on a single.

    9. Re:Better idea by Ben+Hutchings · · Score: 1

      You surely know that the retail price has to be rather higher than the wholesale price in order for the retailer to break even.

      the issue is if you have a full-length with only one good song, you do not want to be selling that song on a single

      Surely an album with one good song would sell far fewer copies than a single? Do people really buy many albums like that?

    10. Re:Better idea by joshsisk · · Score: 1

      You surely know that the retail price has to be rather higher than the wholesale price in order for the retailer to break even.

      Uh, yes, I run a record label. I deal with distributors.

      My point was, I sell vinyl, which is generally more expensive than CDs to manufacture. And I can sell my vinyl to distributors, who sell to stores. I can sell a vinyl single for $2.25 wholesale and make a small profit. And I'm only doing it in the 1000s, not the 10,000s or 100,000s like the big labels are, so my per unit costs are WAY higher than theirs.

      Thus, your comment that "the production and distribution cost of singles is just too expensive" is a bit off, I think. In my experience marketing and selling singles, you can definitely make money at it.

      Surely an album with one good song would sell far fewer copies than a single? Do people really buy many albums like that?

      Which would _you_ rather sell : 1,000,000 $5 singles or 500,000 $15 albums? That's $5 million versus $7.5 million, and albums have a greater profit margin than singles right now, since they are heavily over-priced (as evidenced by labels like Dischord who can sell their CDs for $10, even with high production values, good packaging and advertisements in prominent music magazines).

      Look at it this way. A single or a cd has the same distribution, marketing and pressing costs. A album does have more recording costs, but that's negligable if you're selling 100,000s of copies.

      Like I said, Vanilla Ice's label pulled his single when his song got big, so they could sell copies of the $15 cd instead of the $5 single. They figured this out, and this was the beginning of the end of the single in the US.

      This worked great in the short term, except that customers started to get disillusioned by the fact that labels were still basically making singles, just charging more for them.

  34. IBM All Over Again by Royster · · Score: 4, Insightful

    IBM used to be Microsoft.

    They had an effective monopoly in computer equpiment. Sure there were competitors, but they ate the crumbs that IBM couldn't be bothered to bend over to reach. They had been the subject of a long standing antitrust investigation by the Justice Department which was dropped by the Reagan Administration.

    Along comes the microcomputer which IBM names the PC. But, IBM wants to protect it's mainframe business, so they try to deliberately hobble the nacent PC so that it won't take away desktops holding a 3270 terminal. They don't build PCs with Intel's new 80386 chip.

    The result, competitors fill the markets which IBM's internal politics won't let them fill. Compaq sells 386s hand over fist and IBM loses the market they made.

    Now Sony makes the same mistake.

    Those who forget the past are doomed to repeat it -- Satayana

    --
    I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
    1. Re:IBM All Over Again by demastri · · Score: 1

      while the IBM=Microsoft angle is reasonably accurate in terms of relative monopoly, the "ibm hobbles pc with bad processor" paranoia is just fabricated out of whole cloth.

      The original PC shipped with the 8088 because that was all that was the best that available from Intel at the time (discussion of the 8/16 bit data bus that distinguished it from the 8086 aside...). The AT had a '286 because (again) that was the best available from Intel at the time. The '386 came even later than that.

      I'd look up the actual timeline, but slack prevents me, because it's such an obvious case. It was a few years between processor releases, so this can't really resemble their actual business thinking...

      Yes, I'm old. Old enough to remember this firsthand.

      - John

    2. Re:IBM All Over Again by glenrm · · Score: 1

      And Microsoft (Media2Go) wins again, by giving the customer what they want and not calling them bad names!

    3. Re:IBM All Over Again by Royster · · Score: 1

      When the 80386 came out, IBM did not make any systems with it for several years. They continued to ship 80286-based IBM ATs. Compaq shipped the first 386 systems.

      In '87, IBM shipped their first 386 based systems hobbled with the Microchannel Bus, but by then, the ship had sailed and Compaq and others were selling 386 besed systems.

      I remember it first hand as well. I guess at our age, some memories begin to fog over.

      --
      I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
    4. Re:IBM All Over Again by demastri · · Score: 1

      Thanks for clarifying what you meant. Your original post was easily misread (by me, at least) into thinking that the original PC could have been a '386, which we both agree was not the case.

      Your timeline of IBM's later releases is more accurate, but the time gap between Compaq and IBMs releases wasn't really that great - 9 months. It was ultimately the incompatibility of the MicroChannel, compared to the commoditized hardware available for use with the Compaq, that killed IBMs PS/2 line more than anything else...

      - John

  35. Hello? by jaaron · · Score: 1

    We need to decide what's right first and then companies have to adapt to that.

    What?

    Umm, if you don't like what a particular company is doing, then simply don't support them (i.e.- don't buy their products). Unless they're doing something illegal, which in the case of Sony is no, then why do we need to set policy for them? I mean really, who died and made you God? How about I decide what I think is right for your personal life first and then you have to adopt to that.

    Regulation has a place. Law is important. But you can't regulate and legistate things to suite your case, especially if there is no crime being committed. We're talking about music here, and not that great of music at that. The only crime Sony and related companies have committed is providing really horrible service and treating customers like criminals. So forget about them, or compete and offer better music and better service. But until you've run a multinational corporation and figured out how to do it "right," I think you should not be so quick to regulate their business according to your values.

    --
    Who said Freedom was Fair?
    1. Re:Hello? by freestyle-fiend · · Score: 1

      > But you can't regulate and legistate things to
      > suite your case, especially if there is no crime
      > being committed.

      Whether a crime has been committed depends on what we want to be illegal. That's how democracy ought to work.

      The parent post is correct.

  36. Corporations do not run the country (yet)... by simpl3x · · Score: 0, Flamebait

    snicker, snicker... and, what country do you live in? you really do need to get better informed! we are about to go to war for oil... even those who are very well informed on the subject, and feel that saddam needs to go for plenty of reasons, acknowledge this point.

    oh dear, we really are in trouble!

    1. Re:Corporations do not run the country (yet)... by geekee · · Score: 1

      If we were really going to war for oil, we'd be attacking Saudi Arabia, not Iraq, dumbass

      --
      Vote for Pedro
    2. Re:Corporations do not run the country (yet)... by Anonymous Coward · · Score: 0

      Actually, you're the dumbass. If America institutes a puppet government in Iraq, it can exert a(n even more) controlling force in the region. No longer will they have to consult with Saudi Arabia, Turkey, or Kuwait as to whether or not troops can be deployed, plains refueled, etc. Even though America could indeed win an all-out war with any country in the middle-east (or anywhere, for that matter... one set of tridents from a single nuclear sub can take down any country's capability to govern itself effectively), history has shown that war without domestic and international support is a costly, and mostly losing proposition. This is why Iraq, as opposed to Saudi Arabia, is literally under the gun.

  37. C'mon now by Anonymous Coward · · Score: 0

    You're trolling, right? I mean you can't really be that stupid, can you?

  38. Hello by Anonymous Coward · · Score: 0

    yeah, hi

    don't they get payed by your taxes?

  39. Radiohead by eherot · · Score: 3, Informative

    I was a little disturbed when this article stated that "Major acts like Radiohead have flatly refused to make their music available online." This was very much contrary to everything I knew about Radiohead. I decided to pay their web site a visit just to check. Sure enough, while their site does not contain MP3s of actual album songs, they have several music videos and dozens of bootleg mp3s. I've always thought of Radiohead of the kind of band that thinks it's really cool when they do a show and the audience already knows the words to their unreleased songs. Everything I've read suggests that they are one of the few bands that have fully embraced the online music trading trend.

    1. Re:Radiohead by josefek · · Score: 1

      I'm not sure how Radiohead, of all bands, got mentioned. I recall them providing one of their recent albums online in it's entirety (albeit at 128 kbit) temporarily prior to its 'official' release.

      peace

      --
      rev.jsfk
  40. Appomattox by T1girl · · Score: 2, Funny

    I think I'll just listen to the voices in my head until they get this thing straightened out.

    There's always one other way to do something - your way. -- Waylon Jennings (1937-2002)

  41. Re:That sounds fair to me by skinny23 · · Score: 2, Informative

    > Corporations are not people

    Umm, the Supreme Court thinks differently:

    Back in 1886 the US Supreme Court ruled during in a railbed dispute titled Santa Clara County vs. Southern Pacific Railroad. The ruling held that a private corporation was a "natural person" entitled to all the rights and privileges of a human being.

  42. Britney vs. U2? You're joking right? by Qrlx · · Score: 2, Interesting

    As I'm reading these Britney vs. U2 comparisons, I can't help but think how much I disagree with them.

    U2 is the product of marketing hype, even moreso than Britney. How many Grammys does U2 have? Realize that U2 is marketed towards thirtysomethings, Britney to teeny-boppers.

    Look, it's a matter of personal preference. Personally I'm not going to be downloading any U2 or Britney anytime soon, I'd rather listen to Skinny Puppy or Muslim Gauze. YMMV.

    But comments like $30 a CD of people who fall for marketing bullshit remind me of why we need to all boycott the MP....OMG the new LOTR movie is out I'm gonna be first in line!!!

    Okay, back to the topic:

    Sony's biggest problem is that, on both sides of the house, their (consumer-oriented) products are disposable. Or maybe that's their strength. I don't understand a civilization whose raison d-etre is the quick-flip, the economy of which has relegated works of lasting value (be it CDs that you'll want to listen to in ten years, or CD players that will still work in ten years) to a cultish minority that remembers when things were made of metal and lasted forever. Sony used to "get it", my Betamax built in 1981 outlasted four latter-day VHS machies. Not anymore.

    Perhaps, if we're lucky, Capitalism will eat itself. Certainly, the sea change brought on by lossless copying vs. crappy content has Sony et. al. burning the candle at both ends.

  43. Read the article! by debest · · Score: 1

    Given that fact, most mega-conglomerates with .02 cents of knowledge will tell their music arm to re-adjust it's buisness model and become profitable, mainly because the fault does not lie with the technological arm.

    It's highly unlikely any major company is going to tell it's profitable tech arm "stop making computers consumers like and buy" because they dont support their less profitable media arm.


    According to the article, the hardware division is barely profitable at all (like Matsushita, Hitachi, etc. not able to make things as cheaply as other Asian compititors). It said that the media arm brought in a fraction of the revenue, but virutually ALL of the profit!

    Plus, we don't know how DRM will (if ever) become reality. In a free, competitive market I would hazard a guess that it would eventually fizzle and die. But I would think that Sony would want to keep this together as long as the issue of *forcing* DRM (through legislation) is still a distinct possibility. Even if Sony splits off the media from the hardware arm, the RIAA/MPAA will still be there, still pushing for legislated DRM. If it becomes reality, then there is no more conundrum on Sony's part: their hardware and media will be perfectly suited to one another!

    --
    Look at the tomato! Isn't it sad? He can't dance! Poor tomato!
  44. Not possible by thorrbjorn · · Score: 5, Insightful

    To save its electronics business and make its dream of digital services a reality, Sony needs a system that doesn't punish consumers yet somehow satisfies the entertainment industry.

    This system is not possible. The only system that will satisfy the entertainment industry is one which punishes consumers. The industry doesn't just want to protect it's copyrights (a goal with which I agree), but restrict consumer rights, making legal practices technologically impossible.

    For example, the practice of burning a CD you legally own, so you can take that copy in your car with you leaving the original safely at home. To the consumer this is perfectly normal. To the courts, its perfectly legal. To the industry, its a perfect wasted, a lost opportunity for revenue. They want to make you buy two copies of the CD.

    For the entertainment industry, DRM isn't about protecting copyrights, its about opening up new revenue streams. The problem facing the technology industry is the fundamental fact that consumers don't want to pay more for less.

  45. Sony loosing out to the iPod? by klang · · Score: 1

    The fifties, the transistorradio .. it's a Sony
    The eighties, the walkman .. it's a Sony
    The naughties, the iPod .. it's an Apple.. ..with 30% of the mp3 player marked it seems..

    That can't but hurt the gadget part of Sony.

  46. sounds like my company by Anonymous Coward · · Score: 0
    their entire business plan (at least in the areas I am exposed to) is solely based on aquisition of contracts and shmoozing the "customer." Its like a restaraunt that has only 1 broken table with 1 chair that has tacks sticking up through the seat and yet the awning, outside lobby, parking lot and sign out front take up about 250,000 square feet. No kitchen is present, however one of the many bathrooms has a little dorm room burner available with some used crisco and a handless spatula next to it.
    Based on the system of welfare there is really no need to be trully accountable or responsible for actions much less ever spend time, money or thought on the quality of work and producing what the end user needs. Instead of a middleman (which would seem to indicate a smaller part of the whole with disproportionally large influence... we have here a situation where the non-middleman is a minority.

    I have heard many refer to the recording industry (non-artists and direct band reps/managers) as being like this. (at least they are not funded by tax dollars and add to that the added travesty of not providing the needed systems to the defense department.

    The solution as always is a form of competition. Government created monopolies definitely are not the solution.

  47. A few words... by MamasGun · · Score: 1

    CORPORATE RADIO SUCKS, try some alternatives sometime. You might be pleasantly surprised.

    --
    "But you've already got a DVD. It lasts forever....In the digital world, we don't need back-ups..."
    -- Jack Valenti
  48. Right vs Left by redtail1 · · Score: 0, Troll

    Eee gads. A quick glance at the topic and I thought this was a survey on masterbation preferences.

  49. Philips did the right thing by Incadenza · · Score: 2, Insightful

    Well, at least Philips did the right thing in 1998 when they sold of their music divison Polygram. The reason they did this were exactly the kind of problems mentioned in this article, they foresaw conflicts between their CD-recorders/copiers and their record company (so now they can focus on copiers that do read copy-protected pseudo-cd's). The time that hardware builders needed their own content providers to sell their equipment has long gone. Welcome to the 21st century, Kimura San.

  50. Re:That sounds fair to me by Anonymous Coward · · Score: 0

    Um... you do realize that we vote more than once every five years, right? Even if you only voted for the president it would be more frequent than every five years.

  51. Re:That sounds fair to me by XorNand · · Score: 2, Informative


    Actually, there were seven people in black robes who in 1886 wholly disagreed with you. In Santa Clara County v. Southern Pacific Railroad, The US Supreme Court ruled that corporations do actually have the same rights as "natural persons". That case was specifically about California taxing corps differently than people, but it set the precedent that corporations are people too. blech...

    --
    Entrepreneur : (noun), French for "unemployed"
  52. Re:That sounds fair to me by BryanL · · Score: 1

    I believe you meant to post this response in the Slashdot poll.

  53. Say what? by Pope · · Score: 1
    We're talking about music here, and not that great of music at that

    Sony Music Japan did the [b]excellent[/b] reissues of Miles Davis' back catalogue a few years ago, so we're not exactly talking about a few pop artists. Sony Music is HUGE.

    --
    It doesn't mean much now, it's built for the future.
  54. It's hard to compete against "free as in beer" by TFloore · · Score: 4, Interesting

    And when you are comparing the price of anything to a nearly-equivalent version of the product that is offered for free, almost any amount of money, no matter how small, will not be considered "fair" by most people.

    Most people don't copy music to spite the record companies. (Oh, a sizable percentage of /. readers might, but not most normal kazaa users.) Most people copy music, and let other people copy it, because it doesn't cost them anything, except a little bit of time. And most people don't properly value their time.

    This is one of the problems that unlimited internet access causes. (Don't get me wrong, I love unlimited internet access and would be very upset if I were charged per-megabyte fees.) I don't mind giving a friend a lift across town in my car. It doesn't cost me much at all, maybe $0.25 in gas or so, and 10 minutes of my time. I will think seriously about driving a friend from one coast of the U.S. to the other, because that is a non-trivial expense, just in terms of gas and vehicle maintenance. Time expense also becomes unreasonable.

    There should be a similar thought process with sharing music. Giving a friend a copy of a cd you bought, so they can listen to it and see if they want to get more stuff by that group, is a reasonable thing to do. Giving 2000 copies of it to people all over the world isn't.

    But with unlimited internet access... Giving 2000 copies away to total strangers costs you the same as giving one copy to a good friend. The only "cost" to you is your time to set up the client and music files on your system.

    It's hard to compete with free.

    Competing with quality or convenience? Quality won't work. It will be too easy for P2P networks to add the equivalent of karma. Add a crc value to the information transmitted in a file search. After a verified good transfer, compare the crc value. That lets you verify the other client isn't lying about contents. Then you can listen to the music, and "moderate" on quality of the rip. Not if you like the song, but if the rip is good quality. Enough "nothing but skips and cracks" votes and that client drops to the bottom of the search results. You just solved the quality problem on p2p networks. Convenience can be handled also.

    It's hard to compete with free.

    We love this when talking about Microsoft, and any other propreitary vendor competing with an open source product. But the recording industry (and the artists that want to distribute their own stuff without dealing with the Major 5 Labels) has this problem also.

    I admire the problem... and I wish I could offer a good solution. I really think it will just end up being a version of Apple's solution. An advertising campaign "Don't steal music" and almost no real limitations enforced. Because nothing else will let the industry keep the honest customers, which I like to think are the majority.

    --
    This is my sig. There are many like it but this one is... Oops. Frank, I've got your sig again! Where's mine?
    1. Re:It's hard to compete against "free as in beer" by salesgeek · · Score: 4, Insightful
      It's hard to compete with free.

      That's what happens when you make so much music, then basically give it away to consumers over FM radio (or on TV) for 30 years... The entire broadcast business is based on this model:

      Consumer: Mooches for free. Changes channels to avoid commercials.
      Customer (advertiser): Pays broadcaster for commercials that consumers change channels to avoid.
      Broadcaster: Pays for playing movies or music.
      Labels & Studios: Churn out more crap that is simmilar to the crap that sold the most commercials for the broadcasters.

      Exception: Theaters and live performances - customer pays outrageous price for tickets...

      The problem with the internet is that it's the ultimate commercial skip.
      --
      -- $G
    2. Re:It's hard to compete against "free as in beer" by Anonymous Coward · · Score: 0

      Not too many people would drive a friend across country if the friend ask. However, if I'm driving to the Left Coast, and a friend I know needs a lift to Denver, I have not a problem offering him or being asked for, a ride to Denver.

      On a larger scale, this is done in WADC. People park at park&rides. SOV drivers, wanting to drive on the express lanes, will stop and pick up "johns", so they can all go on the express lanes, which are all HOV, and drop them off. There is quite the setup and culture about doing it "right" (witness the occaisional stories that percolate out when someone gets the shit beat out of them for not doing it "right") that makes the Shotgun Rules rules seem...simplistic.

    3. Re:It's hard to compete against "free as in beer" by Indras · · Score: 1

      Most people copy music, and let other people copy it, because it doesn't cost them anything, except a little bit of time. And most people don't properly value their time.

      I think I'm gonna have to disagree with you here, Bob, er, TFloore.

      Personally, I don't share music anymore, MP3's just don't interest me (there hasn't been any new songs out worth listening to, besides maybe Stone Sour and Hoobastank, but that's another issue). But, I have no problem downloading a movie or video game, and leaving it in my shared folder for a while after it's done downloading. I use Overnet, which requires uploading in order to download (great system, by the way), so it doesn't hurt me any to share more stuff than I already am (since it automatically shares the pieces and parts of files you have finished, even if the whole file isn't done). There's none of my time involved in sharing the stuff, it's done for me. And that's where a vast majority of the stuff shared on p2p networks comes from. People sharing something they've already downloaded.

      Now, the people at the start of the chain, who use DVD2SVCD (movies) or Audiocatalyst (music) on the latest purchase and put something up online for the first time are the ones actually putting time into it. And, I can almost guarantee that they're doing it for themselves, in their free time (time outside of work, eating, sleeping, school, etc). People I know who make MP3's usually do it with a CD they've just bought, so they can have a really high quality rip that they can add to their playlist, and since it doesn't take any extra effort to drop it into a shared folder and watch it spread across the internet, they have no problems doing this. As for my friends who make SVCD's, they're usually doing it for themselves, too, because they run down to Blockbusters, rent a DVD, bring it home, copy it, and take it back. Then, they burn a copy for themselves and all their close friends for a couple bucks, and drop it in their shared folder too, because, like I said, there's no extra effort involved.

      You seem to think there are people who don't do anything else besides run around, spending fortunes for new DVDs and CDs just so they can rip them and put them online just to be nice. I'm sorry, I don't think these people really exist.

      People generally do things with their own needs in mind, and because of the nature of the internet, everyone else just lucks out and benefits from it.

      --
      The speed of time is one second per second.
    4. Re:It's hard to compete against "free as in beer" by ranchdudes · · Score: 1
      It's hard to compete with free.


      This claim seems to make sense, but think of all the products that compete with free alternatives. How do these non free products get exchanged for money? Well, they are better (in some way, to some people) than their free variant.


      Think bottled water vs. tap water, callgirl vs. girlfriend, a round of golf vs. a walk in the park, etc. Can you think of more examples?

    5. Re:It's hard to compete against "free as in beer" by Anonymous Coward · · Score: 0

      Thanks for the Stone Sour tip. Sounds okay.

    6. Re:It's hard to compete against "free as in beer" by Clan+Hanna · · Score: 1

      A friend of mine works at Cisco, developing internet telephony. One of their most pressing concerns is how they can possibly market this to investors and companies. Consumers, they know, will love it, as soon as they can get the quality to better than that of a land-line phone call. Companies won't invest in it, though, until there is some "foolproof" method of charging for it, and actually getting people to pay for it.

      Currently, the phone company is the one I really don't want to piss off. Don't pay your bill? Fine, they shut your phone off. Then you can't call the gas company to turn your gas back on, the electric company to turn the lights back on, or the water department to turn the water back on. You can't even call the phone company to turn the phone back on! But imagine if phone service was an internet commodity that was billed like mp3.com or such music services. Don't pay your bill? Okay, just switch to a different service, keep the same internet phone number (or DHCP) and keep right on living life for free.

      --
      ----------
      I'm sick and tired of being responsible for the preservation of the universe and its outlying suburbs.
  55. wishful thinking by phr2 · · Score: 1
    While the music industry (RIAA, MPAA, etc..) is attempting to bring the cross to bear against IP infringments onto tech comapnies, everyone knows that DRM is ultimatly impossible. Not in that you cant make it hard for copiers to copy and distribute them, but in that if someone can hear/see what you have to show them, they can ultimatly record it, or re-create it.
    I'm afraid that's wishful thinking. RMS explained in his Slashdot interview almost 2 years ago, discussing the then-ongoing suit against Napster:
    If they do not win using present-day law, we can expect to see the record companies purchase new laws they can use to suppress these programs in the future--and trot out famous musicians like Metallica (only famous musicians get much of their income from copyright) who will say that copying music is like killing their baby.

    We can also expect to see fierce attempts to catch individuals who use Napster and imprison them. The War on Copying will become more vicious.

    The War on Drugs has continued for some 20 years, and we see little prospect of peace, despite the fact that it has totally failed and given the US an imprisonment rate almost equal to Russia. I fear that the War on Copying could go on for decades as well. To end it, we will need to rethink the copyright system, based on the Constitution's view that it is meant to benefit the public, not the copyright owners. Today, one of the benefits the public wants is the use of computers to share copies.

    I'm afraid the MPAA is not going to give up as easily as we'd wish, and we're in for a long period of increasing suckage.
  56. The best way to put it... by holygoat · · Score: 1

    "people don't photocopy newspapers".

    I was going to write more, about how there is an optimum price, la di da, but I think that sums it up if you think about it.

  57. I have to nitpick... by TFloore · · Score: 1

    I'll take a U.S.-centric view, because, hey, that's where I live.

    The U.S. is not a democracy. It's a republic. Do some reading, learn the difference. It was made that way 200+ years ago on purpose.

    Yes, the Founding Fathers that we respect so much didn't really fully trust the unwashed masses. And the more I see, the more I think they were right. :(

    --
    This is my sig. There are many like it but this one is... Oops. Frank, I've got your sig again! Where's mine?
  58. Re:It would be a mistake to focus too closely on t by billtom · · Score: 1

    Ah, but you're missing a point. Our control over companies is as consumers, not as citizens. If enough people disagree with a company (and exercise that disagreement by not buying the company's products), then the company will change.

    But, you might argue, the record company's aren't changing, even through lots of people aren't buying their products. To which I would point out, that the slashot/tech savvy crowd isn't really indicative of the general population. Enough people are still buying CDs to make the record companies think that there might be hope for their existing business model. Record sales are dropping, but not really by that much. If record sales dropped by, say, 60% in a year, you can bet your ass that the big five would turn on a dime.

  59. What Mr. Stringer Meant by PetWolverine · · Score: 1

    Maybe he'll overdose on #5 and we won't have to worry about it.

    --
    I found the meaning of life the other day, but I had write-only access.
  60. The Trouble with DRM by ronfar · · Score: 2, Interesting
    Most ordinary people object to DRM because in some way the companies using DRM are deliberately screwing them. Usually, it's someone who ran into some wall somehwere, for example, "If you own a (IBM-clone) PC, and you want to watch movies on it, you will have to have Windows on it. Sorry if you think Windows is a waste of space, and technologically there is no real difficulting in playing DVDs on Linux. We've decided that you aren't going to be allowed to play movies on Linux. Sorry if you were looking forward to watching movies on a long plane trip on your Linux Laptop, but that's just the way it is." or "So you are American and you want to play Rockman 3 on your Sony Playstation(tm)? Sorry, but that's not allowed. Too bad you aren't a Japanese citizen." or "Oh, you want to watch the pilot for Twin Peaks? Sorry, but you're American, the rights are all screwed up there. Now if you lived in Europe, maybe..." or "Oh, you bought an MP3 player? Sorry, that's a more or less useless piece of technology. We certainly aren't going to allow you to copy tracks from your own CDs to play on it, and we also aren't going to let you legally download those tracks. You may as well toss it in the trash, since even if we come out with something like it, someday in the far future, it will be a nice DRM enabled product."

    Now, if the companies that loved DRM would stop deliberately screwing people, they'd probably let most ordinary people come to accept DRM. Then in the future, when they clamped down, people would be more used to DRM. Sure, people like me would still worry about how DRM could be used, but if it were not being used in objectionable ways, we'd be stuck with theoretical arguments. A lot of these people will look at me like I'm a wild eyed fanatic if I start up with doomsday scenarios based on theoretical abuses of DRM. However, if I can tell my sister that her favorite old TV series won't play on her DVD player because of it, she immediately starts to care.

    Personally, it makes me happy when DRM loving companies turn the screws in a way that ordinary consumers get screwed. It is music to my ears when a large number of CD players can't play DRM "enabled" (i.e. disabled) CDs. Because it irritates people, and if enough people are irritated, you might get enough public support to take on the plutocrats (who still depend on consumer good will at the end of the day, no matter how much they may hate them.) and get rid of DRM. It won't happen if they manage to keep the vast majority happy, though.

    --
    All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
  61. Re:It would be a mistake to focus too closely on t by jazman_777 · · Score: 1
    Corporations do run the country, bud. Hate to break it to you. How often does your representative "represent" you over a large corporation? Never. They have lobbyists and lots of money to contribute. We have a voice and the innate ability to vote for whichever candidate has the most money. Either way corps. win.

    And where do corps get all their money? From all _your_ contributions (aka "shopping").

    --
    Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
  62. Other problems... by decep · · Score: 1

    I think Sony has other problems too. For instance, the Playstation2 as a game console is nice, but is severely limited as a "home entertainment system." Also with the PS2, the sony memory stick was around long before PS2 was introduced, but instead they decided to use a proprietary memory card and they charge you $25 USD for 8MB of RAM on the slowest possible interface.

    I do not mind a company trying to make money, but milking their target audience for everything they are worth goes a little too far in my opinion.

  63. Re:That sounds fair to me by jazman_777 · · Score: 1
    That case was specifically about California taxing corps differently than people, but it set the precedent that corporations are people too. blech...

    Next the court will be telling us that dogs are people too.

    --
    Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
  64. Re:Britney vs. U2? You're joking right? by hdparm · · Score: 1
    You're joking right?

    No, I'm not.

    U2/Britney comparison seemed handy, since already mentioned in parent's post. Judging as objectivelly as possible, U2 produced music of immensly better quality than Britney ever will. I personally stopped listening U2 stuff released after Rattle&Hum but that's another story.

    What I was trying to say and obviously failed to do, was the fact that there is much greater possibility someone will copy quality stuff (in this case U2) over trash. People whose preference is U2 are not likely to buy/download any of Britney's crap but kids who buy Britney would probably want U2, as well, moreso due to the fact that U2, as you correctly pointed out, is overhyped, too.

    Now, that's only 'content' part of the whole story. You are absolutely right about the 'technology' part. Somehow, I just can't see us getting lucky anytime soon.

  65. Web pages on shortening or eliminating copyright by Anonymous Coward · · Score: 0
    For support for elimitating copyrights or greatly reducing their terms, see Richard Stallman, especially here:
    http://www.memes.net/index.php3?request=displaypag e&NodeID=650

    and also Brian Martin's essay "Against intellectual property" (part of a large book -- _Information Liberation_)
    http://www.uow.edu.au/arts/sts/bmartin/pubs/98il/i l03.html

    You can also see lots of ongoing discussion on Lawrence Lessig's blog http://cyberlaw.stanford.edu/lessig/blog/ which I have been posting at specifically in this Doc's diagnosis topic comments section here: http://cyberlaw.stanford.edu/mt/mt-comments.cgi?en try_id=889

  66. Copyrights let people make their living making IP. by gottabeme · · Score: 1

    It's simple. Copyrights allow people to make their living making intellectual property by giving them ownership of their work so they can control it. If copyright did not exist, no one could charge for it. If no one could charge for it, no one could make their living making it. If no one could make their living at it, they'd have to make their living doing something else, like building bridges, so they wouldn't have enough time to devote to making good IP. If there were no people who had enough time to spend all day writing songs or stories, then all we would have is campfire songs and legends. No one would have time to learn the skills, or time to use them.

    --
    "Those who consume the bulk of goods are those who make them. We must never forget this secret of our prosperity."
  67. Non-event.... by benjiboo · · Score: 1

    These conflicts of interest should be a non-event, in that even if a company such as Sony didn't have to think about it's media arm, they shouldn't release devices which blatantly encourage piracy. This is not least because of some desire for the general good, but also to help the rapidly converging entertainment and consumer technology industries. And this convergance is happening towards the same goal. Us, as consumers will eventually win in our desire of freedom over our digital media. The gadgets will facilitate this freedom at just the right time. Monolithic companies who refuse these freedoms will eventually lose out - don't forget they are now operating in an industry with significantly reduced barriers to entry to what there was only ten years ago..... Apple occupy an interesting position, in a niche for people who like to be creative with their machines - home video, audio, DTP. I think Apple are the only firm with a small chance of justifiying their device....

    --
    Vacancy for signature. Apply within.
  68. The Economics of selling shit by t0ny · · Score: 2, Interesting
    I don't want to JUST preview music, I want to buy it, albeit, one track at a time, if they sold me an mp3 in 320kbps for $1, I'd buy it--even before napster, they were lucky to get one CD out of me per year. It's all about selling a product with a value people will pay for.

    thats the problem the music industry now faces- how will they continue to make gobs of money off very bad 'artists' who put out a bland product, and often only have one good song per album?

    I will admit that the downside to being able to buy per-track will be that, in many cases, certain artist's songs needed to grow on me (which generally happened because I was too lazy to turn off the CD player and replace it with something else).

    Back to the point, however, is that MOST of the music that comes out now is very bad and/or very derivative. How many from-the-grave best sellers did Biggie Smalls and Tupac have? I think they do more work dead than they did alive.

    But when you are selling to a discriminating customer, who actually wants to hear something good, it makes the whole process a lot more difficult; you have to actually hire people with talent! Gone will be the days when Billy Idol or Puff Daddy can make money, because instead of paying ~$15 for the album, you will pay $1 for the digital single, which is the only good song ON that album. Net loss to the record industy= $14.

    --

    Manipulate the moderator system! Mod someone as "overrated" today.

    1. Re:The Economics of selling shit by NeMon'ess · · Score: 1

      When rotten bands have one good song I'll buy fifteen good songs from fifteen rotten bands and be happy. The bands will be happy too because they'll have actually gotten my money. I would never have bought their albums otherwise. Billy Idol is good enough that I'll still buy the entire album, or enough of it that Billy will get plenty of royalties. I will not buy a Prince album, but if the day comes when I can buy select songs, he'll be getting some of my money.

  69. Web pages on shortening or eliminating copyright by Paul+Fernhout · · Score: 2, Informative
    [Accidentally posted this as A.C. -- reposting as me...]

    For support for elimitating copyrights or greatly reducing their terms, see Richard Stallman, especially here:
    http://www.memes.net/index.php3?request=displaypag e&NodeID=650

    and also Brian Martin's essay "Against intellectual property" (part of a large book -- _Information Liberation_)
    http://www.uow.edu.au/arts/sts/bmartin/pubs/98il/i l03.html

    You can also see lots of ongoing discussion on Lawrence Lessig's blog http://cyberlaw.stanford.edu/lessig/blog/ which I have been posting at specifically in this Doc's diagnosis topic comments section here: http://cyberlaw.stanford.edu/mt/mt-comments.cgi?en try_id=889

    --
    A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
  70. Split Up = No Profits by wbm6k · · Score: 1

    The article makes clear that the hardware side of the company is actually losing money; the content stuff (music, movies, Playstation) is funding the whole thing.

    Basically, the profits from the music is what allows them to invest in developing new hardware products.

  71. Re:To all supporters by rzbx · · Score: 1

    This is to all the posts that support copyright. I understand the way you see things, I used to think the same when I was a little kid. When I entered high school the subject really caught my interest and I began to read into it. I thought about it every single day and still do to this day, but fortunately now I take a break every once in a while. I ask you all, please, do some reading on the opposing side. Also, for just one moment, seriously consider the option of no IP laws.

    Btw. almost everyone defending IP mentioned the fact that without compensation, intellectuals would produce no works of art or new ideas. I first must ask, are you an artist? writer? music composer?
    Art and technology advances are fueled by interest, passion, wants, needs, and pleasure. Yes, money can be linked directly to this and even without IP laws money can be made (do some reading to find out how). I could go on forever stating all your defenses for IP with counter arguments against them, but this isn't the place.

    --
    Question everything.
  72. Take the Money, Sony by Anonymous Coward · · Score: 0
    The two interests are not opposed, they just think they are.

    All they have to do is give up on DRM, and then take everyone's money.

    Tape trading and copying was around in the 1980s. Last I heard, the music industry didn't disappear. VHS tapes, like audio cassettes, were easy to copy. Last I heard, the home movie industry didn't disappear. Most software isn't copy-protected. Last I heard, the software industry is still around, and actually doing ok if you ignore the ex-dot-commers.

    If you publish enough crap, they will buy it. The zombie horde of consumers will relentlessly pursue you and when they catch you they will mindlessly moan and shove money down your throat. You will gasp and choke and then another wad of bills will be shoved into your mouth as you desperately try to get a breath. You can try to run, but then you'll trip and the zombies will surround you, burying you in money until you can't move and are crushed beneath the weight. What a horrible death for Sony: to be drowned in cash.

    The push for DRM is just the gasping and choking. Eventually Sony will learn to tolerate the taste of money being thrown at them, and decide it isn't so bad. Or they won't get over it, and somebody else will get the money instead.

    Sony stockholders, tell Sony you don't like the mismanagement in the media division. Tell them that instead of running away from money, they need to accept. Sony needs to be reminded that their goal is to mercilessly and amorally make as much profit as possible, and saying no to customers isn't the way to do it. Sell the people what they want.

  73. Problems by No+Such+Agency · · Score: 1

    You should care about their problems, because they tend to become your problems if the big corps are left to solve them by their preferred means. "Preferred means" = passing costs on to the customer, limiting customer choice, cutting jobs to boost share price, suppressing criticism with SLAPP suits, etc.

    Note, I'm not advocating we sympathize with them. But the gov't and citizenry have no obligation, and often no material interest, in helping corporations out of holes they dug themselves. Nor should we allow them to compound their mistakes to the detriment of the greater good. This especially goes for "industries" like the recorded music companies, who victimize both their resource base (the artists, via usurious contracts) and their customers (by predatory pricing and anticompetitive actions).

    --
    Freedom: "I won't!"
  74. Probably not... by 2nd+Post! · · Score: 1

    If I paid for my music, I would probably share it with my friends... possibly, but I wouldn't make it available to the masses because then it would feel like, rather than stealing from Sony or something, like stealing from me.

    Of course, my friends who borrow these musics might not feel like this, but I have to expect my friends would feel similarly and share their music with me, and wouldn't be sharing their bought music with the world, so they wouldn't share my bought music either.

    That's just how I see it though.

  75. Re:Britney vs. U2? You're joking right? by Qrlx · · Score: 1

    Well, since I love arguing...

    It's likely that the people who are most into napster et.al. are the "kiddies" who have more of an interest in Britney than U2. People who are past college age are probably not so well represented on napster.

    Also, people who are older (and thus more likely to be U2 fans) are probably more likely to buy the CD:

    1. they can afford it since they're not poor college or high school kids
    2. they are more mature and might think that "stealing music" was okay when in college but wouldnt do it now
    3. they would like to be able to listen to the music in their (new) car (with CD player), something they didnt even own when in HS/college

    Just my thought. But i bet that both U2 and Britney are HEAVILY traded on P2P, because they're both quite popular.

    I wonder if there's some study/survey of like the 100 most popular P2P files being shared (this month). Kinda like google's zeitgeist. That would be kewl.

  76. The other problem megacorporations have.. by Anonymous Coward · · Score: 0

    ...Is they all have media divisions that are too big, too unimaginative (one has only to watch television, check out the latest "hit" records, or look for the current showings at the local cinema to see how bad it's gotten), and too full of lawyers.

  77. Re:It would be a mistake to focus too closely on t by Directrix1 · · Score: 1

    As consumers, the intelligent elite are severely outnumbered by the ignorant masses. The peons oppinion is the only thing corps care about anymore (thanks Wal-Mart). Therefore, our oppinion will never be sufficiently conveyed to the corps. That coupled with the US's severely flawed IP division (which the world is using as a model for their own flawed IP division) gives us very little choice indeed, and further proves that we are truly powerless.

    --
    Occam's razor is the blind faith in the natural selection of least resistance and in universal oversimplification. -- EF
  78. Re:It would be a mistake to focus too closely on t by Directrix1 · · Score: 1

    Read my reply to billtom above.

    --
    Occam's razor is the blind faith in the natural selection of least resistance and in universal oversimplification. -- EF
  79. A conflict between East and West by Anonymous Coward · · Score: 0

    This is a very interesting conundrum for Sony. The Eastern philosophy of business seems to implore Sony to ensure that all members of the corporate family are healthy. In this way, the Sony media division would be compensated for any loses by the money made in the Sony hardware division. They can charge a premium on themselves of, say, two dollars on every media device with a hard drive. This can be shared in the entire "family", with a neutral revenue impact.

    On the other hand, the Western philosophy demands that Sony sell everything but the MOST profitable, SHORT TERM solution. Then they can lobby the government for protection from competition.

    I think that Sony could do quite well by subsidising themselves.

  80. Thanks by Hubert_Shrump · · Score: 1

    Really. Hadn't thought (obviously) about it.

    And here I thought me and /. had a failure to communicate. ;)

    Drink the coffee before posting;
    Read the books before burning.

    --
    Keep your packets off my GNU/Girlfriend!
  81. "The tech divisons want to offer the consumer all the possible options, while the media divisions are very concerned on DRM. While the two groups are trying to meet somewhere in the middle, they are still at odds about it, and also finding that that middle is becoming rapidly populated by other competitors (including Microsoft)"

    I think an appropriate analogy of the situation would be this:

    If the current situation at Sony were represented by a hand, the tech division's wants and needs would be represented by the pinky and ring finger. The media division's wants and needs would be represented by the thumb and the pointer finger. If you put those divisions' wants and needs at odds with one another, you would only have just one finger left. The big ol' bird pointing right at the consumer.

    --


    --"The perfect example of the man of action is the suicide." - William Carlos Williams
  82. The effect might be the exact opposite by perkr · · Score: 1

    Consider this: Not all people are talented/motivated enough to create all kinds of content. Now some people might consider releasing their song etc for free just to entertain people but what about those who don't? They are probably going to figure out a way to illegally have secret societys that only the selected ones are invited too (cash). There this valueable content will be provided, while the common marked is flooded with crap. Also, a lot of potential great content might never be produced since without copyright, creating content equals no money whatsoever. Given that we are not living in a socialistic/communist society very little time-consuming quality content may see the light of day. Not saying it's gonna be that way, just a thought. Also, personally I dislike the thought of forcing people to give away their creations for free. Isn't that a sign of a truly totalitarian state? Pardon the English, not my native language.

  83. Buy American by Anonymous Coward · · Score: 0

    I'm glad that an American company (Apple) is beating a Japanese company (Sony) on the quality of their product. Personally I'm not hoping that Sony gets over this problem of their's. The more profit for corporations here in the USA, the less for foreign owned companies, the better.

  84. That's because you are an Elitist. by ArcSecond · · Score: 1

    Congratulations! You have been correctly indoctrinated into the North American Liberal Intelligensia(TM)! This involves accepting that institutions should concentrate power in the hands of the Better People on behalf of the Average Person, because (of course! why question it?) the Average Person is incapable of understanding anything or contributing to governance in any meaningful way. In fact, they just get in the way, always taking about injustice and how tough it is. Whiners.

    So, hurrah for the self-serving, privileged, elitist upper-middle-class! If you feel bad about the way things are going, just move into a gated community and buy a new Benz.

    (I find this as anti-democratic an attitude as "one person can't do anything... that's why I don't vote". Either you are for MORE democracy or less, and most people I talk to are for less. And you seem to be, too.)

    --

    I've got a bad attitude and karma to burn. Go ahead. Mod me down.

    1. Re:That's because you are an Elitist. by ChaoticLimbs · · Score: 1

      The purpose of a representative republic isn't to satisfy elitism. It's to balance the needs of the rural people with those of the cities. If this was a pure democracy, whatever NY and CA wanted to do, the rest of the country (flyover territory) would be yanked around with no say in the matter. The reason for our electoral college system, our House and Senate is to balance the states so that each can have its own culture and a more balanced say in governmental affairs. I am sorry you are so cynical about it. In a pure democracy, if every white person decided that it should be taxed to be Black or Jewish or Latino, then they, with their larger numbers, could make it so. We have a republic because republics have laws and limitations. Pure democracy is mob rule. Count me out of that pure democracy crap, OK?

  85. The solution, but no marketing by fulldecent · · Score: 1
    Minidisc was the solution to all the RI problems we've been having.

    I bought one of these things (the MD pkg 5) with a deck and portable player. It featured the ability to copy CD to MD but not CD to MD to MD. And the media was cheap $9 for a disc when CD's were $17.

    Problem is: they never marketed it, ever. I saw like 2 magazine ads and that's it. Even now, when someone sees my MD player, they're like "what's that", "minidisc" "what's minidisc". So the solution was there, then they never marketed it, and noone bought it and the prices rose.

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    -- I was raised on the command line, bitch