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Will Legal P2P Music Distribution Succeed?

SnowWolf2003 writes "It looks like a couple of people are trying to find a way to distribute music legally over P2P networks. The latest is Mercora (with more information here). Also Napster 2.0 is due for release sometime next week. Can any of these Windows alternatives to Apple's iTunes compete though with the inherent restrictions built into the wma format? Note MusicMatch has just launched a windows based service with fewer restrictions equivalent to the iTunes policy. More importantly, can these P2P services lure enough people away from restriction free Kazaa to make themselves successful, where P2P networks rely on a large user base?"

32 of 260 comments (clear)

  1. Legal P2P Won't Succeed by Luigi30 · · Score: 4, Insightful

    It won't. As long as there is a free alternative, no matter what the chances are of getting sued, some people will use it. Why? Because they don't want to pay for that kind of stuff. Some people are too cheap to pay a dollar per song, or something like that, and want to just get loads of music, illegally or legally.

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    1. Re:Legal P2P Won't Succeed by UnuMondo · · Score: 4, Insightful

      I don't understand why this was modded down, and it was going to be my response as well. The era of paying for music is over. People are already getting used to the idea of music and movies being free through P2P services. Sure, you might get a better experience if you buy the album with its art and CD-quality sound, and seeing a film in the theatre is a much more enjoyable experience than DiVX, but these new legal services don't offer anything that P2P doesn't. Their restrictions and the idea of paying for music seem unacceptable, and they cannot compete.

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    2. Re:Legal P2P Won't Succeed by Anonymous Coward · · Score: 2, Insightful

      I agree completely. As long as I can steal the music, why should I pay? I may not have any morals, but I have plenty of music!

      The music industry is different from the movie industry in that music videos and songs are played over the airwaves for free (except that I have to listen to and watch commercials). Then, they expect me to purchase a license to those songs. Bollocks!

      The movie industry at least gives me a little taste with trailers. If I'd like, I can go see the feature in a theatre, or wait until it is available for rental or purchase. If I decide to purchase the movie, it generally costs about $15.00 --- the same amount I'm expected to pay for an audio CD!!!

      I believe the music industry's biggest problem is that the typical song is less than 4MB in size. No matter how cheap they make their CDs, the inconvenience of d/l the "good songs" on an album costs far less. They can't sue everyone.

    3. Re:Legal P2P Won't Succeed by kfg · · Score: 4, Insightful

      You're right. I'm too "cheap" to pay a dollar a song to download.

      I've got two copies of John Hartford's "Aereo Plain" here. That's right, I've purchased it. Twice. It appears I'm not simply cheap. There must be more to it.

      There are 16 songs on the album. I payed ten bucks for the vinyl. Ya know, that stuff that's quite a bit more expensive to manufacture and distribute than CDs? For that ten bucks I got a large, "officially licensed" physical object. With cover art, liner notes and because it's an actual object I've been able to enhance it's value, both monetarily and to myself as a keepsake, by having the entire band autograph the disc itself. I can help preserve the disc by taping it (or making a digital file of it) and playing that, as a right guarunteed me by law.

      I also have the CD. Rather smaller, so the cover art is less impressive. In at least one respect I'm thus getting less for my money, but they've at least made up for it with moderately extended liner notes and really nifty painted disc.The disc itself is actually pressed, not burned. I could have the entire band autograph this as well if John hadn't just died a while ago.

      This too I can preserve as a master and make a digital file of to listen to if I wish. Legally. Play that file on any computer or portable player I wish to as well.

      $14.99 at Amazon. I've now spent twentyfive bucks on this album. I'm not cheap.

      A buck a song would be sixteen bucks ( and remember this was originally an LP. Some CDs have more songs than that) for which I would get. . . some crappy rip of a propriatary file format that restricts what I can even do with it and where I can play it. Maybe I can't even burn it. If I can it's a CD-R, not a pressing.

      Didn't we just have a story on the shitty lifespan of burned discs?

      I'm not cheap, but yeah, I'm too "cheap" to pay a buck a song for a DRMed crappy download.

      About a quarter a song seems right. Five bucks an album.

      Oddly enough, since I'm not "cheap," if I really like it I'll end up wanting to buy a professionally pressed and packaged CD (a REAL CD) for ten bucks later on.

      Go figure.

      KFG

    4. Re:Legal P2P Won't Succeed by Have+Blue · · Score: 0, Insightful

      If the era of paying for music is over, the era of music is over. As long as creating music isn't free, the creators will want to sell it and try to prevent people from sharing it. And why shouldn't they? Do you have a right to free music?

    5. Re:Legal P2P Won't Succeed by Anonymous Coward · · Score: 1, Insightful

      Copyright and being paid for each copy of one's music are recent concepts. For thousands upon thousands of years musicians were not paid for each performance of their music. Nonetheless, art was produced in huge quantities. There will always be people out there who are so inspired that they will create even if they won't see a dime from their work. Artists may be happier if they receive money from each CD sale, but the idea that art will disappear if the current funding scheme does is ludicrous and entirely ignorant of history.

    6. Re:Legal P2P Won't Succeed by hkmwbz · · Score: 2, Insightful
      Artists can get money by doing concerts, appearances, and so on. Free distribution of their music could actually contribute to more fans, and as a result, more people come to their concerts.

      If the era of paying for music is over, then music will continue to exist, but the record labels will of course try anything to stop what seems to be inevitable.

      I am sure horse carriage makers were more than a little peeved off when cars took over. Too bad for them. Change your business model or go out of business.

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  2. pointless by Anonymous Coward · · Score: 3, Insightful

    no one will pay. DRM will drive us away. people want freedom, not cheapness.

    1. Re:pointless by tomstdenis · · Score: 2, Insightful

      Not only that but these DRM "solutions" often only work on Windows platforms which drives away Mac/Linux users.

      Tom

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  3. in other words,.... by smd4985 · · Score: 4, Insightful

    will people pay for something they can get for free (with no loss of quality between paid and free)? the answer is clearly YES. people do it all the time - bottled water, software, open source software, etc. most people like to support the creators of content they buy, and they also like to get perks that comes with purchasing the goods (i.e. customer support, piece of mind, etc.)

    so the RIAA - if you build it, they will come. let p2p be and stop suing your customers.

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    smd4985
    1. Re:in other words,.... by dirk · · Score: 3, Insightful

      The reason people pay for these things is that there is a perceived quality difference (whether there truly is depends on what you look at). If you ask people who drink bottled water, they think they are getting better quality water with a better taste than they can get from the tap (even though they aren't getting better quality, they think they are). Most people will take free software over pay software any day (see the number of people who pirate MS software), but they don't know enough about software to do this. They know they need MS Office, they have no clue that OpenOffice is almost as good and free. I think the legal P2P system will enjoy a huge popularity at first, and then slowly decline as people figure out that they can still get the stuff for free. Apple's iTunes, had something similar. At first they were doing gangbuster business, as people flocked to it, and now they are doing a much smaller amount of business (but still decent) as people are going back to P2P. At the same time, Kazaa didn't get hurt at all by iTunes.

      --

      "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
    2. Re:in other words,.... by bj8rn · · Score: 2, Insightful
      I'd say the grandparent post is right. Buying a CD (or a vinyl) is analogous to buying bottled water, tap water is like music downloaded from Kazaa or whatever. All those different flavours of the tap water are the analogies of different media formats (wma, mp3, ogg vorbis). And though tap water and bottled water taste differently, it doesn't change the fact that they both are H2O on the inside...

      /insightless

      --
      Hell is not other people; it is yourself. - Ludwig Wittgenstein
  4. A terrible idea for independent bands andmusicians by Schlemphfer · · Score: 4, Insightful
    The idea of using P2P for the legal distribution of music is plain stupid.

    The cost to serve a four megabyte MP3 file is pennies. If I'm a musical artist, I'm more than happy to swallow that cost if I'm getting fifty cents or a dollar per song.

    If I'm selling my own music over the Internet, I want people to come to my site and eat up my bandwidth. If I can establish some loyalty, and make my site a repeat destination for my fans, they're likely to check back regularly and see what new MP3's I've created.

    If my music gets sold by P2P networks, I've lost the ability to make my home page the primary source of purchases for my music. Sure, I'll save a few pennies in bandwidth fees for each user who downloads from P2P...but chances are I'll paying the P2P companies much more than that for administration.

    No, if you're a musician, you want people to rely on your website for all downloads of your music. And you'll be thrilled to pay any bandwidth fees that are incurred by people purchasing music, as those fees are trivial.

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  5. Regulating P2P by thedillybar · · Score: 4, Insightful

    How are you going to regulate P2P? Sure, the RIAA can develop software that corresponds with them (e-mail, whatever). This server can provide a key for a given P2P server after the software logs in, kind of like Kerberos I guess. BUT, this isn't going to work very well with peers running the servers...after all, none of the P2P servers can really be trusted by the RIAA.

    It seems that within days (or hours), some sort of Kazaa Lite will be released that allows you to login to the P2P system without any correspondence with the RIAA. I guess they could require the servers to verify keys with the RIAA server too, and when someone running the lite version runs a server, sue them as they are now.

    The bottom line is this. They can't stop everyone from stealing music. Their goal should be to stop the majority. Based on the current RIAA business model, I really don't see this happening anytime soon (or maybe ever).

  6. Inherent costs make this unattractive by laigle · · Score: 4, Insightful

    The question about legal P2P is this: Why should I pay money for the songs AND provide expensive upstream bandwidth to the system, AND get chewed out by my ISP/netadmin for resource use, when I can pay for the song and only use downstream to pull it off the service's computers? This could work, but the prices would have to be marked down dramatically, and the seervices would have to get ISPs to sign on and stop labelling anyone who uses their already metered upstream as a war criminal. I don't see that happening, not until upstream bandwidth becomes much cheaper.

  7. Re:It's simple... by ajensen · · Score: 5, Insightful
    The reason why they would pay is pretty simple, too.

    When you pay for something, you're paying for both the product and the benefits it provides. For example, when you buy software, you get the peace of mind that nobody can haul you off to jail for having it, along with customer support to help you out when it doesn't work.

    If all you're interested in is the product itself, then those benefits might not sound enticing enough. But for the rest of us -- we have enough to worry about. I sure sleep better at night knowing that I don't need a license for my software (except maybe from SCO). I also know that all of my music is paid for.

    -a

  8. Ohh yes another great DRM plan by mpcooke3 · · Score: 4, Insightful

    "Individual songs may be burned or copied to CDs without restriction, although CDs with the same order of songs can only be burned five times to prevent pirates from churning out scores of full copies."

    Duh!

    I think this clearly shows how little marketing people understand DRM technology. As soon as something leaves a DRM system it can be copied freely. The first CD you burn can then be copied a million times using standard CD burning software!

    When will they give up with all the DRM annoyances. There are a lot of people that just want mp3 files (or ogg or whatever) and are happy to pay for it. At the moment we get more restrictions on music we download from their crappy sites than we do if we buy the damn CD.

    They are forcing people into using these dodgy p2p systems because they won't let people download music in the format they want. Ooh didums are people copying your music -People don't want DRM that's why! If they buy some music they expect to be able to play it on whatever OS or music system they choose.

    RIAA have to get a grip on reality ... [trails off into usual slashdot rant]

    1. Re:Ohh yes another great DRM plan by mpcooke3 · · Score: 2, Insightful

      Your dad isn't planning on burning 50,000 copies of Madonna's latest album and selling them.

      The person who is planning on doing this will know how to *cough* "bypass" the DRM by using normal CD burning software.

      In fact it is so trivial to burn copies of these DRM'd tracks it hardly seems appropriate to use the word 'bypass'.

    2. Re:Ohh yes another great DRM plan by Anonymous Coward · · Score: 1, Insightful

      > "Individual songs may be burned or copied to CDs without restriction, although CDs with the same order of songs can only be burned five times to prevent pirates from churning out scores of full copies."

      I think this clearly shows how little marketing people understand DRM technology.

      It also shows how little they understand mathematics. If an album as 10 songs, then there are 10! permutations of those songs that can each be burned 5 times. That's a total of 18 million CDs.

  9. Comment and some questions by sokk · · Score: 3, Insightful

    Windows Media. I don't like it at all.

    I'd rather buy a CD. Besides actually getting something physical, it contains fewer restrictions and features better sound than it's lossy counterparts on the computer. If I were to download something, it better be compressed in Ogg Vorbis or Flac (broadband is on the rise). Why should I pay to download a song in a closed format, when I can't do with it as I want?

    I don't know what music you listen to, but I listen to music where albums often are themed or have a story -- where every song is a part of the complete. The album art is also a part of the experience - same as the quality of a pressed Compact Disc versus a home-brew one (I've heard about CD-Rs that last no longer than a year, because of the shitty quality) . I would've give that up for the one-hit wonders (tm) starred on the radio today. Never.

    Anyways; this is probably a blessing for those who actually like the one-hit wonders (tm). Because they won't have to buy the "fillers" that is so common on pop music albums today.

    When it comes to p2p networks - why should I share a 'buy2play'-file using my bandwidth? That would only earn the distributor's money in the form of having to serve less bandwidth?

    By the way. Is the MusicMatch service US only? Will the "buy2play" P2P-services be US only?

  10. Re:A terrible idea for independent bands andmusici by Ieshan · · Score: 3, Insightful

    Disagree.

    If someone would build in a tracking system (not by user, before you go nuts, by songs and discs), the system could automatically recommend free samples of upcoming artists who chose to participate in such a promotion.

    For instance, I listen to a relatively unknown band named Porcupine Tree, who sound a little bit Prog and a little bit Hard Rock, with some great harmonies and things mixed in. If a service were to suggest them to you after you downloaded the right amount of music in the right composition and then give you a free sample, Porcupine Tree's fan base might have just increased by one. Then, you might download some more of their music (which you pay for), browse around their website, or maybe you hate the stuff and never listen again. But you've listened once, and that's what matters.

    This is the type of music distribution that P2P needs. Incentives and Exposure for the artists. A working P2P model would incorporate the consumer's neophobia into give-aways and freebies designed to help out the music service (people will be downloading more music) and up-and-coming bands.

  11. There will always be cheaters by Ars-Fartsica · · Score: 5, Insightful
    Even if songs were practically free, there will always be people who can and will skirt the normal distribution methods. Look at cable TV and/or satellite. At some point the industry will concede a margin of loss and move forward - the cost of chasing the cheaters will be greater than the lost revenue.

    But of course we are nowhere near this point yet. The music industry probably needs to spend another three years with it head stuck in the sand and a near death experience on CD sales to see that it needs to change. It will at some point take the obvious route people had been recommending for years, but only when they are the brink of extinction.

    Our economy is filled with cartel-like behavior (OPEC, cable TV, media) that will be very painful to break, the record industry is no different.

  12. This is NOT P2P by ReallyTweakin · · Score: 2, Insightful

    This NOT P2P. P2P=Peer to Peer - this is client-pays-for-access-per-access-to-server.

    Get it right - it's why it won't succeed. The power of P2P is that what you have that I dont and I want I will soon have and so on, the same applying for every user of the system.

    There's no library that can be assembled like the one that we assemble when we all put all our books together on the same set of shelves.

    Any 'service' such as these, especially insofar as they incorporate any DRM/copy protection features, is simply broken.

    Speaking of broken, so is this 18th century copyright model. Which, incidentally, it isn't. Copyright as institued in its American inception would never have allowed this to happen. Lobbiests have, through the power of political peer to peer networking, mutated the copyright into a beast that protects them while they do all the evils it was designed to prevent.

    While I'm on the subject of broken things, so is the RIAA business model. We have them on the coals - lets keep them there till they burn. There was music and art long before RIAA - there will be long afterwards. Anyone who's read the recent Wired mag has probably seen the charts that illustrate the one-to-one correspondence in the decrease of new musical offerings to their CD sales. They should consider themselves fortunate its not worse than it is given the crap that they are offering for sale.

    --
    Death Dances Only With The Living
  13. Strength of iTunes by 2nd+Post! · · Score: 4, Insightful

    You get no reliable library on P2P because that's not the way it's designed. If you want rare, obscure, or reliable stuff, you need things like iTMS or MMS. If you want popular, current, modern stuff, then P2P is fine.

    So if for $1 per song I can access all of Nat King Cole or Frank Sinatra (from master even), that is just *impossible* on P2P because no one on P2P has access, likes, or owns those songs, than Apple can make mucho money.

    It's because the two systems operate on different premises:

    iTMS: Reliable access, fixed content, diverse nature
    P2P: Free, whatever is popular

    There is *always* a chance to find Nat on P2P, but the chances are much higher you'll find Brittany Spears, Garth Brooks, or Backstreet Boys, just because of the demographic of users and the number of copies available in the first place.

  14. This already goes on by Flagbrew · · Score: 3, Insightful

    This already goes on at etree. Does the slashdot crowd turn a blind eye to this because they are looking for "pop(ular)" music? I would hope that the folks here are willing to step out of the mainstream and support bands that allow taping.

    Regards

  15. I _will_ pay. by XenonOfArcticus · · Score: 4, Insightful

    But only on reasonable terms.

    I have about 20Gb of MP3s. They're all mine. Ripped from CD's I own. Occasionally my CD was too badly damaged to get a good rip, so I've gotten a copy of a rip from a friend who owns the same album. Legal nit-picking aside, I think I have every legal right to do that.

    I've never bothered with Napster, Kazaa, Gnutella or their like. I make intellectual property for a living, and I believe artists and creators ought to get paid for their work. (A discussion as to whether they actually _do_ get paid anything by the music publishers is beyond the scope of this rant.)

    I want to buy more MP3s, legally. But I'm not going to bother with these half-assed more-expensive, more-restricted offerings. Sooner or later, they'll realize they have to offer equivalent or greater value to the consumer to win their business.

    I want to listen to my newly-purchased songs in WinAmp, right along side my existing rips that I legally own. And if I want to put them on my laptop and listen to them while traveling, so be it. And MP3 players, while cycling. And maybe burn some to a CD to listen to in my car. It's my music, I can do what I want with it. Anything less is unacceptible.

    Buying an entire album one song at a time and ending up paying _more_ than that album costs down the street at a bricks & mortar store? And getting a crippled, compressed, proprietary format that locks you to one CPU (what if it dies?) and only certain players? Who thought that was a clever idea?

    The end of insane music publishing margins and selling the same music multiple times to a consumer (vinyl, tape, CD, DVD-Audio, MP3, etc) is here. The industry needs to learn to trim the fat like everyone else, and actually deliver value. And, to treat their customers like customers, not criminals.

    I want to buy music. A lot of it. I'd probably drop $300 the first week such a reasonable system were available. And that's just the start. But lose this stupid business and operational model that they keep coming up with. Nobody wants less for more.

    --
    -- There is no truth. There is only Perception. To Percieve is to Exist.
  16. Re:Three Letters Spell FAILURE: WMA by Ieshan · · Score: 3, Insightful

    Actually, DRM is double-speak for "You can't do what you want with what you legally own that isn't legal", or it's sister-saying, "You can't do what you want with things you don't own".

    Since you don't own certain rights to what you're listening to, they have every right to restrict it. There's a really good reply to this in the capitalist system we live in: Don't buy their stuff.

    No, I'm serious. It's one of those interesting facets of capitalism that people often overlook: if something is desired by the people, people will make it and sell it. Likewise, things that aren't desired by the people simply won't sell.

    Why do you use Linux? Why do you read Slashdot? Why do browse with Firebird? Is it because you don't support the other products on the market, or because yours have certain features that they don't?

    A great example of this is the recent block on cigarette smoking in bars around the Boston Metro Area. They've passed the legislation because of workers and consumers rights - people shouldn't be exposed to a cancer causing agent. A friend of mine brought up a great point - this entire idea is absurd, if people wanted smoke-free bars, they'd exist and be doing well *without* legislation that prevents other bars from having cigarette smoke. This is the danger - Microsoft and other companies forcing this unwanted legislation down your throat. You can either a) sit in the bar and not smoke, b) quit smoking, or c) go to a bar that allows it. The same analogy stands up when dealing with Computers and Operating systems - keep using Windows if you like, stop using computers altogether, or switch to something that's more viable for your needs.

    Oh, and about the lossless music - don't bother. It's completely not economical to distribute WAV files or SHNs across the internet. If you can really hear the difference between a WAV and a good mp3, you've got quite the ear. :)

  17. It WILL succeed ... as soon as ... by fygment · · Score: 4, Insightful

    ... art is truly valued by the majority of society. Which is to say maybe never.

    How about this as a theory. How often have you heard an artist explain that they can't help doing what they do? That it's a spiritual fulfillment? Well then, isn't that the reward in and of itself? And maybe subconciously sensing this, society feels that it doesn't need art per se but that if someone feels good about producing it, well then it can be appreciated. But should society pay for it? Historically, it seems the answer is no. It isn't as if, except in relatively rare occasions, that art is asked for on commision (think big picture here e.g. were musicians approached for hire to invent "punk" music as a useful contribution to society or we hire bands for concerts or entertainment but not to create specific songs for us).

    So maybe musicians produce music because it satisfies something inside of them. And maybe that's the payback i.e. feeling good about expressing yourself and connecting, perhaps, with others.

    Now the music industry is about making money and their M.O. is ostensibly peddling other people's art. But if most of society doesn't really feel the need to pay for it, then what hope is there for any selling scheme if a free source exists?

    It seems that the preceding reasoning would mean the music industry should focus on those circumstances where music is readily payed for i.e. the concerts, film scores, etc. The production of CD's would then be viewed as a form of advertising and hence an expense, not a profit making venture. In that light, you would conclude that the music industry should embrace P2P since advertising doesn't get much cheaper.

    Funny world ... but not ha-ha.

    --
    "Consensus" in science is _always_ a political construct.
  18. P2P versus paid for TCO by benwaggoner · · Score: 2, Insightful

    Actually, there are a lot of things a paid service can offer that pirate P2P can't:

    Guaranteed quality
    Much better browsing
    No spoofing or hoax downloads

    legal P2P can offer those, but you're still left with:

    Download speed

    Most P2P systems don't offer very reliable download speeds. I suppose a BitTorrent system could work, but I question how well it could scale up to hundreds or thousands of different songs for each user. The number of users who are logged in at any given time who have the correct song might not be that high. Also, most users has asymmetric download.

    If you're doing a paid service for relatively small files like music, it seems to make more sense to just own your own servers and pay for your own bandwidth. Much more straightforward to users, and not that expensive in context.

    1. Re:P2P versus paid for TCO by Simonetta · · Score: 2, Insightful

      The essesential core of the MP3-RIAA debate is the economic assumption that each buyer-seller transaction of music is an exchange of 40 to 60 minutes of recorded music for the financial equivalent of two to three hours of minimum wage work, and that this exchange will be done by the swapping of compact disks for money. It has always been assumed that the seller would be a music corporation and buyer an individual.
      This model has worked for about 60-80 years. The sale of songs for $0.99 US each is the same model facilitated by smaller and more precise transactions.
      Technology has blown this model out of the water and revealed the extent that abhored by millions of buyers. The industry needs to completely rethink its economic model to fit the new technology.
      The music industry needs to realize that they aren't in the recorded sound business, they're in the business of linking isolated individuals together through the use of music. They have done this by mass-marketing sound-encoded disks and tapes. By retooling their ability to manipulate the 'marketability of cool', to paraphrase Lester Banks, they can return to their previous position of profitablily and respectablity without relying on the sales of units of recorded sounds.
      I could go on and on. But it's sunny out....

  19. P2P? yay for semantics... by Diamondback · · Score: 4, Insightful

    How is downloading your music from iTunes/Musicmatch/Napster 2.0/whatever P2P? there's no 'peer to peer'... you're downloading it all from a central server like you would any other data. It's not coming from someone else's personal computer that's sharing the data.

  20. [rolling eyes] by Anonymous Coward · · Score: 1, Insightful

    " ... art is truly valued by the majority of society. Which is to say maybe never"

    Art is valued; it generates billions of dollars a year.

    However, I'd point out that the bulk of what's downloaded is probably not art in the sense of being original, beautiful, touching people's lives, etc etc. Its pop-pablum designed to be like toilet paper; you use it once throw it in cold water, and flush it away.

    But people are paying for it, so its hard to say people don't *value* it, you're asking for a kind of freudian respect where people *feel* the value of art.

    They probably do, but not in the context of a Brittany album. No offense to Brittany, who has a billion dollars and a nice ass.