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Would You Pay 5 Cents For a Song?

irikar writes "An academic at McGill University has a simple plan to stop the plague of unauthorized music downloads on the Internet. But it entails changing the entire music industry as we know it, and Apple Computers, which may have the power to make the change, is listening."

129 of 905 comments (clear)

  1. No matter what free will always win... by garcia · · Score: 3, Insightful

    Yet, Pearlman went further. He said that since this plan puts the onus on a massive Internet presence to distribute all the music in the world, why not have such computer companies as Apple and such major Internet companies as Yahoo simply buy up the world's four major record labels? Pearlman was careful to add, though, that he doesn't see his plan killing off demand for CDs.

    And somehow this isn't a pie-in-the-sky idea? Oh give me a break! So what? Apple, Yahoo, Google, Foo buy up the companies and what happens? Their bean-counters decide that well if we can make billions selling songs for .05/download we could make 10x as much if we sell them for .50/download and 20x as much if we sell them for .99/download.

    Pearlman said that Pfohl misunderstood the idea. Then again, another record-industry type, casually speaking to Pearlman after the talk, had perhaps the most succinct counter suggestion. Why not charge 10 cents, instead of 5, and double the revenue?

    Thank you so very much for proving my point.

    It would also obliterate musicians' choices on how their music could be sold by conscripting them into a 5-cents-a-song system. And it would destroy record companies' incentive to invest in new acts, Pfohl said.

    Somehow I doubt that most of the musicians that are under the current cartel's contracts care how their music is distributed as long as they get paid. Those that don't give a shit already allow their music to be distributed for free on the Internet.

    Let's stop with the whining and bitching about the artists you sleazy fuckers and start talking from your own business perspective. Everyone and their grandmothers know that you don't give one iota of a shit about the musicians unless they are filling your ever greedier pockets with money that you can throw at more shitty musicians and sympathetic lawmakers that will kowtow to your bullshit. Someday you will lose but I'm certain that this plan won't do it to you...

    It amazes me that no one looks at the successful bands that have been distributing their music for free for years and says, "hmm, why is this still working for them and we are continuing to put out class acts like Ashlee Lipsynchson and we are hemorrhaging money?"

    Some of the more recent big bands that allow their music to be distributed include Wilco and Los Lonely Boys. Wilco won the best alternative album this year. Hmm and yet they allow me to download their shows. Guess what RIAA? I would buy their album ANY DAY over someone like Ashlee who lip synchs her live crap and refuses to let us hear it for nothing. I mean, it's not even her doing anything why shouldn't it be free?

    Just a FYI Apple, no matter how cheap something is it is NEVER as cheap as free. Free will always win out.

    1. Re:No matter what free will always win... by Cerberus911 · · Score: 2, Interesting

      Seems like a very far-fetched idea that the computer giants could buy the four major music labels. Would they even have enough money to do that?

    2. Re:No matter what free will always win... by Henry+V+.009 · · Score: 5, Insightful

      Their bean-counters decide that well if we can make billions selling songs for .05/download we could make 10x as much if we sell them for .50/download and 20x as much if we sell them for .99/download. Unless their bean-counters have taken Econ 101 and know the most basic things about supply and demand. As you increase price, you decrease volume. There is always a sweet spot that maximizes profit.

    3. Re:No matter what free will always win... by Liselle · · Score: 3, Insightful

      I didn't see anywhere in the article that answered the "who is going to pay for this?" question. Based on what it costs Apple to run the iTMS, somehow I don't see five cents doing much more than covering overhead, if that. If you're just ignoring copyright law and distributing illegally, like a certain site oft-mentioned here, you could make a profit out of it. But if everyone does it, say hello to less new music... right?

      --
      Auto-reply to ACs: "Truly, you have a dizzying intellect."
    4. Re:No matter what free will always win... by Migrant+Programmer · · Score: 5, Insightful

      Their bean-counters decide that well if we can make billions selling songs for .05/download we could make 10x as much if we sell them for .50/download and 20x as much if we sell them for .99/download.

      Please look up the term "elasticity" in your friendly neighbourhood economics textbook.

    5. Re:No matter what free will always win... by geekoid · · Score: 2, Interesting

      "Pearlman said that Pfohl misunderstood the idea. Then again, another record-industry type, casually speaking to Pearlman after the talk, had perhaps the most succinct counter suggestion. Why not charge 10 cents, instead of 5, and double the revenue?

      Thank you so very much for proving my point."

      it doesn't not prove your point, it mearly states that it is a counter point, to which I say the market would decide. The market will drive the price down, if that price is below cost, the business will cease. Unless it's a value add. I could see the portable music marketing heating up where you get a full music catalog when you buy a player. Much like the U2 edition iPod.

      I think you should know, AShly simpson is an 'entertainer' not a musician. No, I don't personaly find her entertaining. PIF, most people don't. I used to think I was just out of touch with the music scene. I've been talking to be in the industry recently and it turns out a lot of these names everyone heres about don't sell many tickets. Most people in one of there concerts are people in the industry that are there to be seen.
      wierd.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    6. Re:No matter what free will always win... by stecoop · · Score: 4, Insightful

      As you increase price, you decrease volume. There is always a sweet spot that maximizes profit.

      Well if you would take Marketing 101 you would learn a couple of other formulas too. You notice at Pizza hut that they sell pizza for $10 dollars for the first one and say $7 for the second one. There is a profit point during the transaction that you can maximize returns buy adding another one to a product that you are already going to buy. Now you have $10 for the 1st $7 for the 2nd and 5$ for the third. Well as you eat more and more pizza there becomes a point where you wont buy another no matter what the price is and then you have reached saturation at that price point. Therefore even though you have saturated the market you can still gather further funds from a fixed sale/profit point.

    7. Re:No matter what free will always win... by IronMagnus · · Score: 2, Insightful

      It really depends on the elasticity of the curve. Some things you can reduce the price on and gain revenue while others you cannot. The same goes true for raising costs. As the above poster mentioned, its all about the sweet spot.

    8. Re:No matter what free will always win... by jigoman · · Score: 5, Insightful

      While you're completely right that nothing beats free, you can't deny the number downloads iTMS has garnered since its start. While free music will always be available, don't underestimate the 'guilt-free' factor. A clean conscience for 5 cents/song is about as good a deal as you can get.

    9. Re:No matter what free will always win... by TheKubrix · · Score: 4, Insightful

      I'm not so sure about that. Granted free is better than paying even a penny, but regardless going via the "free" route is not only more difficult, but leads you down a road of problems. On the extreme end of the scale you can end up having the RIAA knock down your door. Then theres the problem of having spyware/virii ridden software (to this day I still clean/remove Kazaa from people's computer and slap them on the hand/head). Furthermore, theres the issue of not having an entirely clean track. You have to be concerned about having the right song, having the entire song, and then quality, AND the amount of time it takes to be in the queue and to finally download it. All that for what? To save you a few pennies? Unless you're a complete cheap bastard or simply bent on the idea of ripping off musciains, then a major drop in prices will DEFINATLY help. Essentially if they can devise a system where you are a click and a couple minutes (assuming bandwidth conex) away from getting an album for a couple bucks, then I'm positive that pirating would go down.

    10. Re:No matter what free will always win... by jbrader · · Score: 3, Insightful
      As idealistic as this sounds I don't think people get into music for the money. Think about how many bands you've seen playing clubs. Those guys don't make shit from thier music and a lot of them have to have day jobs to make a living. So would we "say hello to less music"?

      Maybe not, but if what you're saying is right, we might end up with less career musicians.

      Although, if you look at some of those old bands that are still touring (aerosmith, the stones etc.) and are just rehashing thier old stuff over and over that might not be so bad.

      --
      You are so boring that when I see you my feet go to sleep.
    11. Re:No matter what free will always win... by Anonymous Coward · · Score: 2, Interesting
      Why would you think that they have taken Econ 101?

      Most of the managers in charge in the music business are ex-musicans, drop-outs and marketing/PR-people. And some of the worst MBA folks.
      I think it's impossible to find any other semi-legal industry with lower skill level. For the last 25+ years the music/media business has cultivated bad management. Why would any sane MBA or other graduate join the music business when they could get a much better job in ANY other industry?

    12. Re:No matter what free will always win... by Neff · · Score: 2, Insightful

      There is always a sweet spot that maximizes profit.

      And yet, when will Economists & corps finally realize that to turn the maximum profit now, means destroying future "brand loyalty" and ends up being detrimental to your product in the long run?

      Yes, to maximumize profit is the goal, but that kind of single mindedness will eventually kill a company. Why don't they understand this??!?!?

    13. Re:No matter what free will always win... by magictongue · · Score: 2, Insightful

      Quote: In addition, a 1 per cent sales tax would be placed on Internet services and new computers -- two industries that many argue have profited enormously from rampant file-sharing, but haven't had to compensate artists. This is where the money is. You take it from law abiding citizens to pay record companies for the potential loses due to illegally pirated music.

      Am I the only one alarmed at giving the government the power to punish the law abiding to subsides those that steal? Even worse, the government now is directly responsible for subsidizing another industry. Who's next, the movie industry, the art industry, the book industry, the software industry? This is a terrible idea. Lets face it everyone is going to want a piece of the action. In a few year Bill Gates, the richest man, in the world will be getting government checks based on the potential someone pirated his software.

    14. Re:No matter what free will always win... by tdemark · · Score: 2, Insightful

      Is fifteen minutes worth a nickel? Hell yeah.

      I think many people would argue that fifteen minutes is worth $.99, hence iTMS.

    15. Re:No matter what free will always win... by Sj0 · · Score: 4, Funny

      Fast Food is an interesting one because the more calories you can give to your customers cheaper, the better chance that they'll return soon to consume more. :)

      --
      It's been a long time.
    16. Re:No matter what free will always win... by JPriest · · Score: 2, Insightful
      As idealistic as this sounds I don't think people get into music for the money.

      And I am pretty sure professional athletes are not in it for the money either.

      --
      Saying Java is nice because it works on all OS's is like saying that anal sex is nice because it works on all genders.
    17. Re:No matter what free will always win... by wild_berry · · Score: 2, Funny

      There would also be questions of anti-trust involved. We wouldn't want them to become monopolists.

      To answer the question that the OP states, a low legal price point that is convenient for people to buy much and which also compensates the people who worked so you could get the music is good for the industry. If so many people buy the music, there won't be free online places to download it from and so people will say "five pennies, no problem".

      The suggestion that it's a good idea that the computer companies buy up record companies and become media conglomerates fills me with dread.

    18. Re:No matter what free will always win... by rainman_bc · · Score: 3, Insightful

      Unless their bean-counters have taken Econ 101

      Obviously you never took economics 101 either.

      Now true the cheaper you go, the more a person will download. The trick, however is to maximize profits. They are in business to make money. Period.

      They feel that 99 cents / song maximizes their reveues. Their choice - it's their product, and if you don't like it, move on and listen to the radio.

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    19. Re:No matter what free will always win... by joeljkp · · Score: 2, Informative

      I agree. I don't buy from iTMS now because I'm somewhat broke and $.99 adds up fast. I also don't download, because I can't stand the ethics of it.

      But if songs were $0.05 each, not only would I not feel bad for buying a few, I would probably listen to (and buy) more music period.

      --
      WeRelate.org - wiki-based genealogy
    20. Re:No matter what free will always win... by tigersha · · Score: 3, Insightful

      Sigh. Always this /. crap about eliminating the middle men.

      Same this morning about free academic publication. You have any idea how much time and cost it takes to produce an album? Not play and record it, but to produce the final product? You also know that the musicians themselves do not always do this?

      You also know that it takes some rather expensive equipment to produce a professional album, equipment that is, in effect, shared by the people to are signed to a label?

      --
      The dangers of excessive individualism are nothing compared to the oppressiveness of excessive collectivism
    21. Re:No matter what free will always win... by mikeplokta · · Score: 4, Insightful

      No, free won't always win. Convenience will always win, and free is part of convenient. But I would rather (for example) pay US$1 to download an episode of a TV show instead of messing around with BitTorrent, as long as they genuinely make it more convenient -- which means a big fat pipe and a choice of unDRMed video formats.

      The big mistake that the music industry is making, and the TV and movie industries are stumbling into, is to make their products less convenient on other grounds as well as more expensive -- region codes, release windows, DRM, etc. Once something is released to the public, it needs to be released to the public -- TV shows and movies need to be available for download on the day that they're first shown.

    22. Re:No matter what free will always win... by nagora · · Score: 3, Interesting
      Unless their bean-counters have taken Econ 101 and know the most basic things about supply and demand.

      However, in Econ 301 they learned that running a cartel to fix prices is the best system of all, so that's what they did. Supply and demand have nothing to do with the record industry's prices.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    23. Re:No matter what free will always win... by stecoop · · Score: 3, Informative

      I was going to reply to the block pricing above but you asked a legitimate question so let me reply to yours:

      First block pricing: is the first stage of the theory but it doesn't account for other hard to analyze costs. It takes a stab at how many pencils can I sell at a given price and make a few bucks instead of analyzing returns on customer transactions. If I have a widget that sells for $100 and you have the same widget for $60 dollars, the consumer may see my product as superior one because of price alone. That is why I think CDs cost more than DVDs; the music industry is trying to appear as a superior product but they are loosing their death grip.

      Now your questions on profit/price curve in law of supply and demand:
      Any product you sell will have a fixed cost on every transaction. If you can analyze the transaction and while you have them ready to commit to fork over money than anything you extract above that price/cost curve for that transaction is more profit. Back to the Pizza Hut thing; why shouldn't they sell pizza for $5? Well the customer already want the product and they are willing to pay $10. I have increased the price on both single point & total transaction sales and didn't impact demand by actually raising the price but reducing the price for the next pizza. I have extracted further returns from the transaction that already covered the fixed costs. These few little paragraphs can't cover 9 hours of college credit but I hope it enlightens a few on cost theory.

    24. Re:No matter what free will always win... by Vicsun · · Score: 2, Informative

      You beat me to the punch but I also have a helpful wikipedia link.

    25. Re:No matter what free will always win... by beakerMeep · · Score: 5, Funny

      Well if you would take Pizza Eating 101 you would learn that I can eat many, MANY pizzas.

      --
      meep
    26. Re:No matter what free will always win... by prgrmr · · Score: 4, Insightful

      There would also be questions of anti-trust involved. We wouldn't want them to become monopolists.

      With only 4 major labels, and all of them coordinating distribution and pricing to various degrees, we're basically at the monopoly point anyway.

      The suggestion that it's a good idea that the computer companies buy up record companies and become media conglomerates fills me with dread.

      Agreed!

    27. Re:No matter what free will always win... by Anonymous Coward · · Score: 2, Interesting

      This isn't the late 90's, bandwidth is cheap and fractions of a cent per MB. Just for reference, look at the big usenet providers. They probably transfer at least 10-20TB daily, have storage of 100-200TB and they sell accounts for $10/month or unlimited access for about $20/month. Using economy of scale and averages of downloads across all users and I'd think the price would even be cheaper for a dedicated music service company. I download about 10-15GB month @ about 3500kbit/sec for my $12 usenet account. If I was using that same limit from iTMS, that would be about 3800 songs a month which think would be well above what the average person buys per month now.

    28. Re:No matter what free will always win... by JPriest · · Score: 2, Insightful
      But after they make it big, they strike if they make 16 million a year instead of 23.

      With the $1 per song that Apple charges, I would be shocked if the musicians saw more than 10 cents of that money (which is still more than CD sales). At 5 cents a song that would leave them with half a penny.

      1 million song sales at half a penny each = $5,000. Also with _most_ artists and athletes, they are only "in the money" for a small number of years.

      --
      Saying Java is nice because it works on all OS's is like saying that anal sex is nice because it works on all genders.
    29. Re:No matter what free will always win... by Skye16 · · Score: 5, Insightful

      There are independent studios that you can record at as well. And yes, they CAN come out sounding really damn good when it's all said and done. Would Britney Spears be able to do it, if she had no money and was just starting? No. But someone who relied on instrumentation and vocals from within the band COULD do it, quite easily. I have TONS of music for you to listen to that sounds wonderful (even if it isn't what you particularly like) that is done independent of anyone. I even have some stuff of two guys who did much of it in their LIVING room and it sounds superb (if you're interested in hearing THAT, go try out Pinback - Microtonic Wave or "B"(Offcell EP) on Launch - if you don't like the music itself, that's fine, but focus mostly on the quality of the production).

      It can be done. It may be more work on the part of the musicians, but it's also cheaper. The only thing that would be prohibitively difficult would be in the distribution of physical CDs (but I guess that's where Amazon comes in, eh?). And when you get to the internet...shoo. It all comes together there.

    30. Re:No matter what free will always win... by DeathFlame · · Score: 4, Insightful

      And this is exactly what the article is adressing.

      That they are wrong about their pricing, and people have moved on, but not to radio, to downloading the songs for free. The only way to win back these people downloading for free is to offer a price of nearly free. Most people downloading 1000 songs a month would never pay $1 a song. But would they pay $0.05 a song? Maybe. And more likley are the people downloading 100 songs a month. $100 is a lot of money.. but $5? Do you think there are 20x the number of people downloading 100 songs a month than buying 100 songs a month? Probably. Therefore, there is money to be made.

      And any mention of artists not liking this sort of distribution system is crap. "Um.. no I don't want to sell my songs for cheaper so that everyone can hear them, only those spending lots get to hear my songs"

      Someone mentioned above something about higher pricing to make it appear the CDs (and by association, the music) 'worth more'. Well it's obvious by the number of downloaders that the CD's are not 'worth more' because of their price...

    31. Re:No matter what free will always win... by JWW · · Score: 4, Insightful

      But illegal downloading far outstrips legal downloading. What the article is really talking about is what would it take to get nearly everyone downloading music legally. I believe that his price point would probably do it as it is an almost disposible amount of money to consumers. And hey, you would have a legal download, too.

      Now the why not 10 cents argument is valid, but I think its still basically a curve. Where 5 cents is the point at where almost everybody leagally downloads music, I think 10 cents might be the point at which half of the people leagally download music.

      The music industry is being greedy, not logical when they determine their pricing right now. We we already burned on the change from cassettes to CD which were going to be much cheaper once they were adopted. So the real feeling allowing people to live with the fact that they're illegally downloading music is that the price for music is obscenely high. No CD is worth $ 16, most aren't even worth $ 13, some aren't even worth $ 2.

      In real manufacturing, real market forces cut the margins down, but with the recording industry prices are artifically set by the RIAA.

      If the recording idustry took an honest look at their options this 5 cents/download option would make them huge amounts of money and save them boatloads on legal fees and bribes for government officials.

    32. Re:No matter what free will always win... by RevMike · · Score: 4, Interesting
      I think you should know, AShly simpson is an 'entertainer' not a musician. No, I don't personaly find her entertaining. PIF, most people don't. I used to think I was just out of touch with the music scene. I've been talking to be in the industry recently and it turns out a lot of these names everyone heres about don't sell many tickets. Most people in one of there concerts are people in the industry that are there to be seen.

      My wife and I have been talking about this quite a bit recently. We've been watching "American Idol". Anwar Robinson is clearly the most musically talented person to ever be on that show, but the stuff he does is not what the record companies want to market. This past Monday he got up and sang Louis Armstrong's "Wonderful World". He started out singing like Louis Armstrong, then series of runs as he moved the style into something more reminicent of Sammy Davis Jr., and finally ended the song in a soul style. His talent should win, but he won't fit into the marketing machine of the record companies.

    33. Re:No matter what free will always win... by Dashing+Leech · · Score: 4, Insightful
      "Obviously you never took economics 101 either. Now true the cheaper you go, the more a person will download. The trick, however is to maximize profits. They are in business to make money. Period."

      I'm confused at your point. The "sweet spot" he was talking about was the maximum profit point. That is, selling 100 units at 1$ each earns you $100 whereas selling 10,000 units at 5 cents a piece earns you $500 dollars. The question is where is price*volume at a maximum and that requires understanding the volume that people will buy as a function of price.

      "They feel that 99 cents / song maximizes their reveues. Their choice - it's their product, and if you don't like it, move on and listen to the radio."

      That's true. Any company is allowed to do things less than best for themselves and even drive themself into the ground. It certainly doesn't mean 99 cents actually is the sweet spot to maximize their profits thought. They might make a lot more money at 5 cents per song if that entices more than a 20 fold increase in sales.

    34. Re:No matter what free will always win... by theVP · · Score: 3, Insightful

      you've just described "Diminishing Utility", which is something that you learn in Econ 101 as well. Quite frankly, it does nothing to disprove his point, as it doesn't negate the law of demand. Not only that, the Utility considered in downloadable music is FAR FAR too large and the diminishing of it is far too small to make it worthwile to mention in this discussion at all.

      --
      "No one is more miserable than the person who wills everything and can do nothing." -Emperor Claudius 10 BC - AD 54
    35. Re:No matter what free will always win... by dillon_rinker · · Score: 4, Insightful

      To be precise, cartels only work when consumers PERCEIVE that they can't "do without". Most American consumers can't distinguish between wants and needs.

    36. Re:No matter what free will always win... by Some_Llama · · Score: 2, Informative

      " Only later, when they get to the point that they start to make money for those few that do do they begin to do it only for the money. "

      A great example of this would be the band Metallica, when they first started out, they encoured their fans to bootlegs their concerts and distribute their music, millions of dollars later you see Lars testifying before congress about how music sharing is "immoral".

    37. Re:No matter what free will always win... by Tree131 · · Score: 5, Interesting

      cheap goods are made for cheap people

      There is a saying that goes something like this:
      I'm not rich enough to buy cheap things.

      Even though cheap goods are made for cheap people, it's a false sense of cheap, because the cheap good will inevitably break, forcing you to buy another one and another one, when for the same amout of money as 2 or 3 cheap goods, you could have bought a more expensive high quality good that would last you a lot longer than 3x lifetime of cheap good.

      I've seen it time and time again, especially with electronics, umbrellas, and of course, digital watches, which, for some reason, seem like a good idea.

    38. Re:No matter what free will always win... by Kombat · · Score: 4, Interesting

      The music industry is being greedy, not logical when they determine their pricing right now. [T]he price for music is obscenely high. No CD is worth $ 16

      The hair on the back of my neck stands up whenever I hear someone claim that "CDs cost too much." CDs are the cheapest form of entertainment, on a dollar-per-hour-enjoyed basis of anything I can think of. For the price of $12 or $15, you can buy an hour's worth of high-quality (fidelity, if not artistic merit) music and enjoy it over and over, for thousands of hours, as many times as you want. And when you finally get bored with it, you can sell it and recoup some of your money.

      NOTHING else is as cheap. No pro sports, concerts, operas, plays, ballets, movies, dinners, truck shows, car races, or comedy clubs give you anywhere near that many hours of entertainment, for anywhere close that such a low price. Nor can you get any of your money back when you're finished "enjoying" anything I just listed, except for CDs.

      Quit complaining. CDs are cheap.

      --
      Like woodworking? Build your own picture frames.
    39. Re:No matter what free will always win... by mankey+wanker · · Score: 2, Insightful

      I know dozens of independent bands and musicians that make truly excellent music outside the traditional music business. They hire or create studios to do their recording work, they have the CDs mastered, and then they duplicate the masters. At least that's what I understand of it. And the music sounds great.

      The music industry brings nothing to the table except their machine - which is not about good music. The machine is about advertising and selling an image to the kids most likely to spend gobs of money on music. The kids don't have descriminating tastes - they're kids! They will acquire good taste in time, but probably not until their 20s at the earliest. BTW, I am not saying that any particular kind of music is better than another - but I would say that it takes time to learn the difference between pap and something solid.

      Coming back to my point again, once you have good taste the music machine produced music doesn't appeal - it's crap. They know it's crap. It's supposed to be crap - designed to appeal until the next hit record takes its place. But no, it's not music for the ages. And sure, every now and again, some great music emerges from the machine system and gives it validation.

      When you have good taste you will listen to only the best stuff, and then spend your time seeking independent alternatives - because your ears can't take the crap. And while not all independent produced music is great, you are more often than not at least dealing with people of extraordinary talent who are willing to put their own money into projects they deem worthwhile. I'd have to say the amount of good music produced independently is far greater than that produced by the music industry's machine.

    40. Re:No matter what free will always win... by MCraigW · · Score: 5, Insightful
      the cheap good will inevitably break, forcing you to buy another one

      So a 5 cent song will break before a 99 cent song?

    41. Re:No matter what free will always win... by KillerDeathRobot · · Score: 2, Interesting

      Um, no. How about DVDs? Many of them are cheaper and you can enjoy them as long as you want too. And on a dollar-per-hour basis, practically any video game has CDs beat too. Pretty much any form of entertainment you do at home is cheaper than CDs, but of course you decided to compare it to the wrong kinds of things to make your point.

      --
      Thinkin' Lincoln - a web comic of presidential proportions
    42. Re:No matter what free will always win... by slutsker · · Score: 2, Insightful

      That is assuming that ALL the people downloading will switch, which is not the case. Many of the people using P2P programs for music are kids who cannot buy anything online at all because they lack the credit card. Others will simply not want to switch for whatever reason. The point is that the market will not increase substantially to make up for a 94% price drop.

    43. Re:No matter what free will always win... by kurzweilfreak · · Score: 2, Insightful
      If I still had the mod points I let expire yesterday, I'd have modded your ass up through the roof. Well said. Someone else, mod parent up please.

      I guess if you don't give a damn about what you're listening to since it is probably for most people just background noise to fill the silence, then you will find CDs expensive because it doesn't mean much to you. If you actually actively listen and enjoy and care about music on more than just a "duhhhh silence sucks" level or give a damn about the people that make it instead of being just as bad as the RIAA you complain about because you somehow think you're entitled to free music due to other people's work... then chances are the cost of a CD is damn reasonable.

      If you really can't afford a CD, then you have bigger problems to worry about than what you have to listen to. If you don't WANT to pay for it and think you have some kind of inherent right to it, please elaborate.

      Please refrain from the moronic justification about how it only cost pennies to manufacture a CD and how you can get a spindle of 50 for $35.

      There's a reason that the vast majority of albums are put out by large companies: it simply costs a lot to do it. With the exception of the do-it-all artists who take it upon themselves to not only write and perform their music but also record, produce, mix, master, duplicate, market, and distribute their albums, most people don't have the time, talent, or inclination to take all of that upon themselves, nor do they have the personal money to fund hiring all the people it would take for that, especially considering the risk that their album might not sell well at all. Fortunately, the state of music technology today is favoring those artists that do decide to wear so many hats and it's only going to continue that way. I certainly applaude those guys.

      I say again, mod parent up.

      --

      kurzweil_freak

      5th Kyu Genbukan Ninpo/KJJR student

      Be the darkness that allows the light to shine.

    44. Re:No matter what free will always win... by jbarket · · Score: 2, Interesting

      Completely agree with you. Being signed to a major record label and being talented have little to do with each other.

      I have a good friend who's been pumping out tracks like he's Tupac for years, in his freakin boxer shorts.

      Take a listen: www.spinonehalf.com

      --

      -----
      jonathan barket
    45. Re:No matter what free will always win... by jaseparlo · · Score: 2, Insightful

      Even though cheap goods are made for cheap people, it's a false sense of cheap, because the cheap good will inevitably break

      That's why I have a Macintosh

      --
      All available data suggest that regardless of any of this, the sun will still come up tomorrow.
    46. Re:No matter what free will always win... by Repton · · Score: 2, Insightful

      As TP put it:

      The reason the rich were so rich, Vimes reasoned, was because they managed to spend less money.

      Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in the city on a foggy night by the feel of the cobbles.

      But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while a poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.

      This was the Captain Samuel Vimes "Boots" theory of socioeconomic unfairness.

      --
      Repton.
      They say that only an experienced wizard can do the tengu shuffle.
    47. Re:No matter what free will always win... by staeiou · · Score: 2, Insightful

      With only 4 major labels, and all of them coordinating distribution and pricing to various degrees, we're basically at the monopoly point anyway.

      No, no, no, no!

      I am currently listening to an album from one of my favorite bands, which happens to be a local band signed to a local record label. After seeing them open for another band, I paid $12 (not $11.99, but $12 even) over paypal to the lead singer's gmail account, and I got a nice CD that looked as professional as it could be less than a week later.

      However, I could have gotten the songs for free. There was a flash applet on their page which played their entire album. Using audio capturing software, it wouldn't have taken me very long at all to get a pristine digital copy. But I decided to pay these guys for a CD that is, in my opinion, one of the best CD's I've owned. In fact, I emailed the guys and told them how much I liked their album. In a little over a week (they are on tour), I got a response. You just don't see that from major recording artists.

      It feels good to know that I am directly supporting a band that I enjoy. If I download the latest [insert random pop figure here] album, I know that I'm not really hurting the band. They're still going to get their massive signing bonus, and I'm not going to notice a difference when it's on my mp3 player.

      Find your local bands! They are there, I promise you. Drift away from what the four labels say are popular; they don't control your music life.

    48. Re:No matter what free will always win... by Citizen+of+Earth · · Score: 2, Funny

      So a 5 cent song will break before a 99 cent song?

      Yep. They don't even coat those 5-cent songs with bit-rot retardant.

  2. Yes by XMyth · · Score: 5, Funny

    Yes, I would pay 5 cents a song and I currently do thanks to some kind Russians. =)

  3. Way too optimistic article... by Anonymous Coward · · Score: 2, Insightful

    Apple might be listening, but I bet you that the RIAA is not.

  4. Death of the CD by bje2 · · Score: 4, Interesting
    Yet, Pearlman went further. He said that since this plan puts the onus on a massive Internet presence to distribute all the music in the world, why not have such computer companies as Apple and such major Internet companies as Yahoo simply buy up the world's four major record labels? Pearlman was careful to add, though, that he doesn't see his plan killing off demand for CDs.
    while the plan may be good, i have to disagree with the last part...this would (in my opinion) surely kill off the demand for CDs...right now, iTunes isn't killing the demand, becuase it's roughly equivalent to download 15 songs for $0.99 per song, or pay $15 for the CD...however, if i could download 15 songs for only $0.75, so why should i ever buy a CD again?
    --

    "Facts are meaningless. You could use facts to prove anything that's even remotely true." - Homer Simpson
    1. Re:Death of the CD by R.Caley · · Score: 4, Informative
      If i could download 15 songs for only $0.75, so why should i ever buy a CD again?

      Depends on who `i' is. For variosu people there are:

      • Downloads, as easily available to the bod in the street now, sound crap, so if you will ever listen to music on something other than a crappy little MP3 player you will have to buy it again.
      • Downloads are ephemeral, so you have to burn CDs and life is too short to do grunt work.
      • Downloads don't come with artwork, lyrics, credits etc. unless you go download them and print them and life is too short to do grunt work.
      • Downloads are harder to buy than picking up a CD at the supermarket, and life is too short to do online grunt work.
      --
      _O_
      .|<
      The named which can be named is not the true named
    2. Re:Death of the CD by SmokeHalo · · Score: 2, Insightful

      however, if i could download 15 songs for only $0.75, so why should i ever buy a CD again?

      Personally, I'd rather spend $12.99 on a CD I can play anywhere I take it than spend 75 cents on songs that are DRM'd and can only be played on my computer or iPod.

      But that's just my 2 cents -- there ya go, and don't blow it all on music, ok? ;)

      --
      I'm not good in groups. It's difficult to work in a group when you're omnipotent. - Q
    3. Re:Death of the CD by chriseh · · Score: 2, Interesting

      this would (in my opinion) surely kill off the demand for CDs...right now, iTunes isn't killing the demand, becuase it's roughly equivalent to download 15 songs for $0.99 per song, or pay $15 for the CD...however, if i could download 15 songs for only $0.75, so why should i ever buy a CD again?

      Yes, why would you want to buy 25 year old technology for more than it cost 20 years ago?

      As a small indy label owner, I would love to see the price of CD's dropped. The crazy thing is that *we* have to raise our prices to something that we don't feel comfortable with because if we don't, people think our product is high quality. The impression is If an industry monopolist CD cost $20, and you want to sell yours for under $10, then yours must have been made cheaply ergo not of high quality which is absurd. I would proudly compare any of our CDs to any RIAA recording any day.

  5. I will stop downloading by REBloomfield · · Score: 5, Insightful

    When the record companies sell what i want to hear. everything i pulled off of napster back in the day was 80's rock and metal stuff that has been discontinued. For god sake guys, put your back catalogues on line, (or even press a cd or two on demand) and then we'll talk. :(

    1. Re:I will stop downloading by Qzukk · · Score: 5, Funny

      But if they did that, they wouldn't be able to sell "Now Thats What I Call Ancient Shit! Vol 4124"

      Won't someone think of the executives?!

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    2. Re:I will stop downloading by mmkkbb · · Score: 2, Informative

      Several techno labels have done just that. Backcatalogs full of hard to find stuff have been placed on iTMS

      --
      -mkb
    3. Re:I will stop downloading by MBGMorden · · Score: 2, Insightful

      That I'll definately agree with. Heck used copies of the Tangerine Dream Soundtrack from Legend go for $50 or more. The labels surely aren't profiting from the used sales. There's clearly demand for it. Rerelease the darned thing or put it on iTunes for goodness sakes.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    4. Re:I will stop downloading by Have+Blue · · Score: 2, Insightful

      They did.

    5. Re:I will stop downloading by jinzumkei · · Score: 2, Funny

      80's rock? soo really, the record companies did you a favor. Now we don't have to listen to you cruisin down the street in your camaro blasting Great White while trying to score with high schoolers. Er i take that back, the record companies did US a favor. :)

  6. You can forget the "stealing tax" by bigtallmofo · · Score: 5, Insightful

    In addition, a 1 per cent sales tax would be placed on Internet services and new computers -- two industries that many argue have profited enormously from rampant file-sharing, but haven't had to compensate artists.

    This is the same scheme that we have today on blank CDs and the like and it is total BS to apply it to computers. I have no idea why anyone outside the entertainment business thinks that it's OK to put a music-stealing tax on every computer, or DRM on every computer when not every computer is even considered for such use. What about the company that buys 10,000 computers per year and because some 12 year old is "stealing" music they have to pay an additional tax and further have to have their computers crippled with DRM?

    --
    I'm a big tall mofo.
    1. Re:You can forget the "stealing tax" by stewby18 · · Score: 2, Insightful

      Exactly. The question is not "would you pay 5 cents for a song?", but "would you shell out money even if you never buy music just so that other people can buy music cheauper?"

      According to his argument that it's OK because the industry has benefited, there should also be a tax to subsidize porn site subscriptions, any other subscription-based content, the movie and tv industry, and even sites that currently run annoying ads to pay the bills.

      What's so special about the music industry?

  7. Commodites by BWJones · · Score: 3, Insightful

    Apple should simply be charging 5 cents instead of 99 cents a song, he said.

    The issue is not what Apple is charging, but what the record companies are charging Apple. As I understand it, Apple Computer Inc. is making essentially nothing on the sale of each song, but rather are using song sales to drive sales of iPod and thus Macintosh computers and Apple software. I am sure that Apple would be more than happy to participate in a 5 cents/song pricing scheme, but it is the record industry that is going to be the hard ones to convince. I do not understand how the recording industry can say it would destroy record companies' incentive to invest in new acts when the potential for much greater revenues can be had with increased volume and lower prices. What they are missing is that new music is what is going to be transiently valuable, but that pre-existing libraries of music are a commodity and should economically be treated as such according to all economic theories I am aware of. This means low prices and high volume.

    --
    Visit Jonesblog and say hello.
  8. 5 cents? I want more by FerretFrottage · · Score: 2, Funny

    For that much, I'd want a song and dance.

    --
    "Look Lois, the two symbols of the Republican Party: an elephant, and a fat white guy who is threatened by change."
  9. Dear Slashdot: More Apple Stories Please by Anonymous Coward · · Score: 2, Funny

    Slashdot simply isn't posting enough about Apple. I demand more Apple-related stories!!!

  10. No matter what free will always win...dead end. by Anonymous Coward · · Score: 5, Insightful

    "Just a FYI Apple, no matter how cheap something is it is NEVER as cheap as free. Free will always win out."

    Until there's nothing left to be free. Then free loses badly.

  11. No, no and no! by Sebby · · Score: 5, Insightful
    I stopped reading when I got to this sentence: "In addition, a 1 per cent sales tax would be placed on Internet services and new computers"

    No, no and fucking no! I refuse to finance any industry which I don't have anything to do with.

    When I buy computers for my business, I don't buy them for anything music-related, so I see NO reason to pay a tax, or levy or whatever the fuck they want to call it to support any music-related thing.

    I'm tired of corporations and government thinking society exists for the sole purpose of ensure their profit.



    --

    AC comments get piped to /dev/null
    1. Re:No, no and no! by pg110404 · · Score: 5, Interesting

      Canada just recinded a 3 or 4 year old blank cd media tax.

      Up here, lobbyists pressured the gov't to tax blank CD media which would then be handed over to the music industry. Their reason: people will steal music no matter what, so let's just obfuscate the the music industry's perceived profits by making people pay for it one way or another.

      A few years back ontario deregulated the hydro and within the first year, some people were paying 50 cents per kilowatthour (average is about 6 cents) and their hydro bills were astronomical at the peak of the summer. Later, the ontario gov't put a cap of 4.7 cents but the balance was paid for by our taxes. It was a kick in the balls and a pat on the head move and is not going to be the last.

      Whatever happened to the days where companies stood or fell on their own terms, and not propped up by the handouts of some third party such as the gov't?

      As a democracy, I say we all rise up and quell any further stupid shit that spews forth from our parliament/congress/whatever. I say we bring back the gillotine.

  12. Oh, right! by greg_barton · · Score: 2, Interesting

    From the article:

    Richard Pfohl, general council for the Canadian Recording Industry Association, refuted Pearlman on numerous points at the conference forum, arguing that the plan would violate every international intellectual property law that Canada has signed in the last 100 years. It would also obliterate musicians' choices on how their music could be sold by conscripting them into a 5-cents-a-song system.

    Oh, right! Like they have a "choice" now with the labels? Have you seen the frikkin' contracts you've got to sign to get on with a major label? You sell your arm, leg, and any potential children's arms and legs. Give me a break!

  13. I stopped at this sentence: by Shamashmuddamiq · · Score: 2, Insightful
    "In addition, a 1 per cent sales tax would be placed on Internet services and new computers -- two industries that many argue have profited enormously from rampant file-sharing..."

    No thanks.

    --
    ...just my 2 gil.
  14. Depends on the song, of course by m50d · · Score: 3, Funny

    I used to buy a very few CDs and download most. With the rise of iTMS I buy more. At £.05 (dollar prices are almost always translated directly to pounds for things like music, grr) I'd probably buy most of my songs. But not all. Some just aren't worth that much. I don't think they're ever going to eliminate "piracy" completely, except by cutting prices to zero.

    --
    I am trolling
  15. Laffer Curve of file sharing. by Vengie · · Score: 5, Insightful
    Basically, he's saying that "If you sell x songs at 99 cents a song" and that "If you drop the price to 5 cents, you will sell more than 20x songs" -- he claims the growth could be "exponential."

    To a certain extent, he's somewhat right. It would substantially lower the bar and you'd have far more impulse buys (and drunk song-buying binges wouldn't hurt as much. Fear the drunken one-click shopping spree!)

    However, I am not such a big fan of his idea of taxing PCs. However, the last line of the article is THE MOST INFORMATIVE OF ALL:
    Then again, another record-industry type, casually speaking to Pearlman after the talk, had perhaps the most succinct counter suggestion. Why not charge 10 cents, instead of 5, and double the revenue?


    These guys don't even get *OLD ESTABLISHED CONCEPTS* let alone "new fangled concepts." Pearlman's response is that if you double the price, you cut the sales by more than half, so you actually DECREASE your revenue.

    They just don't get it. [I'm not saying Pearlman is necessarily right with the .05$ price point, but the "industry type" missed the entire point of the talk!]
    --
    When in doubt, parenthesize. At the very least it will let some poor schmuck bounce on the % key in vi. (Larry Wall)
  16. if the recording industry is agin' it... by yagu · · Score: 4, Interesting

    When first reading the article, my instinct was to not go along with the notion charging for downloaded music, even only $.05 a song. Especially with DRM, etc., always on the sideline poised to come in and wrap you around the axle anytime to you try to play the song (in the proper spirit of fair use)... (I'm STILL upset about one of my recent CD's purchased not playing on my car CD player.... took it in, they would only exchange it... and, sure enough, the exchanged CD failed to play in exactly the same places in exactly the same way... had to demo this to the store personnel before they would agree to a refund.)

    But, maybe they have something there... certainly when: "..., The recording industry is against Pearlman's plan. ..., ", I've got to think it may be something that could work.

    1. Re:if the recording industry is agin' it... by cmdr_beeftaco · · Score: 2, Insightful

      That's the best part. At 5 cents DRM is meaningless. Why bother copy protecting something that no one is stealing?

  17. Clearly doesn't understand IT costs by BlakeCaldwell · · Score: 4, Insightful

    Mr. Pearlman seems to understand economics pretty well, but not IT. Here's the breakdown of an ITunes purchase of $0.99:

    Label(s): $0.55
    Apple: $0.34
    Artist(s): $0.10

    Now, let's chop that down to $0.05 instead of $0.99. Let's break it down this way:

    Label: $0.03
    Apple: $0.02
    Artist: $0.1

    So, when a customer goes to ITunes, they'll surf through several (large)-database-driven webpages to find the songs they want. They'll make a purchase against their already-paid-for credit through ITunes (of probably $10 increments), then download the 5MB song.

    So, Apple now has to run power-hungry servers with a large staff of IT guys making sure they're patched and running correctly. They gotta hit customers' credit cards and give probably 5-10% back to the credit card company.

    All of this... for $0.02 per song?!?

    His model makes sense, but maybe for $0.25 per song... there's no chance Apple would make money by giving up that much bandwidth.

    just my $0.02.

    1. Re:Clearly doesn't understand IT costs by shark72 · · Score: 4, Funny

      "So, Apple now has to run power-hungry servers with a large staff of IT guys making sure they're patched and running correctly."

      I think the general consensus here is "artists and record companies should stop being so greedy." In the spirit of this goal to drive music to $0.05, perhaps IT guys should stop being greedy as well, and just work for the pure joy of providing music, rather than for a salary.

      Yes, I know, IT guys have to pay rent or mortgage and support families. Yet artists and employees of record companies do, too. If they can suck it up in the new Slashdot world music order, so can IT professionals.

      --
      Sitting in my day care, the art is decopainted.
    2. Re:Clearly doesn't understand IT costs by EzraM · · Score: 2, Insightful

      I don't think you understand this. A system like this would eliminate the "label" entirely. I have many musician firends who are constantly recording albums with their own funds, since that has become astronomically less expensive in recent years. If they were able to sell their songs easily and cheaply, and on a massive scale, they'd be able to make money (if there was the demand). Additionally, I believe piracy would shrink if all music was available for cheap and the consumers felt that the artists were getting their fair share.

    3. Re:Clearly doesn't understand IT costs by shark72 · · Score: 3, Interesting

      " 'artists' like Lipsychson making millions. Record company execs making...millions. IT pros making...a lot less than that. Now ask yourself who can 'suck it up' the most of those groups."

      Bad analogy. The executives at Apple (or whomever is paying the IT guys) make millions -- the executives in any large industry make quite a bit of money. The vast majorify of people who work in the record industry (including the "executives" at some indie labels I've met), just as the vast majority of people who work in the IT field, work paycheck-to-paycheck.

      Likewise, the vast majority of artists do not earn a handsome living from their craft. "Let's help ourselves to music for free" goes down a lot smoother if you believe that everybody who contributed to the music is a millionaire, but it's simply not true.

      I hope this wasn't a surprise to you.

      --
      Sitting in my day care, the art is decopainted.
  18. my $.05 by to_kallon · · Score: 2, Interesting

    The recording industry is against Pearlman's plan.
    hrmmm....what a shock! the music industry not willing to adopt change?? surely not!
    seriously, this sounds like a decent proposal, although i highly doubt it will make a significant change (free is less than $.05), but let's face it, will probably never happen. apple can listen all they want, and that's great, but the recording industry will never go along with it. the best idea i found in that article is "why not have such computer companies as Apple and such major Internet companies as Yahoo simply buy up the world's four major record labels?" now *there's* the kind of change that needs to take place.

    --


    The only way to get rid of a temptation is to yield to it.
    -Oscar Wilde
  19. End file swapping? by Exitar · · Score: 2, Insightful

    McGill academic has a plan to end file swapping and save the music industry

    File swapping isn't just music.
    it's movies, TV series, software and ebooks too...

  20. Record companies never, ever get it by FunWithHeadlines · · Score: 2, Interesting
    OK, so his proposal is to drop the price of a song online from .99 to .05, and then supplement it with a 1% tax on ISP charges and computer purchases on the assumption that users of those service and equipment are the ones doing all the music downloading. I don't think the 1% tax will go down too well, although in Canada they already have such a tax on CDs and tapes. So I suppose people could adjust to the idea of paying $30.30 a month for an ISP instead of $30.

    But the quotes at the end are hilarious!

    "The recording industry is against Pearlman's plan. Richard Pfohl, general council for the Canadian Recording Industry Association, refuted Pearlman on numerous points at the conference forum, arguing that the plan would violate every international intellectual property law that Canada has signed in the last 100 years. [SO CHANGE THE LAWS!] It would also obliterate musicians' choices on how their music could be sold by conscripting them into a 5-cents-a-song system. [OR THEY COULD JUST OPT OUT AND DO THEIR OWN DISTRIBUTION AND CHARGE WHAT THEY WANT] And it would destroy record companies' incentive to invest in new acts, Pfohl said. [WHY, BECAUSE IT WOULD BRING IN HUNDREDS OF MILLIONS OF DOLLARS IN REVENUE?]

    Pearlman said that Pfohl misunderstood the idea. [DUH!] Then again, another record-industry type, casually speaking to Pearlman after the talk, had perhaps the most succinct counter suggestion. Why not charge 10 cents, instead of 5, and double the revenue?"

    ROFL! Don't you just know that will be the endless series of suggestions they will make. "Hey, look at how much money is coming in! Let's double again to 20 cents and get lots more moola!"

  21. You guys are retarded by Hhhhh · · Score: 2, Insightful

    PLEASE. While I agree that several patents are whacko and I am a big advocate of Open Source, music and movie copyrights MAKE sense. After all, people actually work making the movies (it looks like many Slasdotters don't) and they need to sustain themselves. I wouldn't waste my time watching "free as in freedom" movies

  22. 5 cents? by northcat · · Score: 2, Funny

    5 cents? Is that a new rapper? 50 cent's midget brother?

  23. Re:25-cent a song is what it takes by Punboy · · Score: 2, Funny

    3.96 times overpriced actually :-p

    --
    If you like what I've said here, and want to read more, go to http://www.krillrblog.com
  24. I'd rather pay $0.99, please by iainl · · Score: 2, Interesting

    If the choice is between buying them from iTunes at the current cost, and paying a mere $0.05 but having to pay a subsidy on every. fecking. piece. of. hardware. ever. then I'll stick with the $0.99 please.

    I've bought a total of 1(one) song through iTunes, because it was an import-only single that was going to cost me about ten times that for the physical version (DJ Shadow's Keane remix, fact fans). At even a 1% tax rate, I can tell you now I've bought a shitload more than $94 worth of hardware over the years.

    --
    "I Know You Are But What Am I?"
  25. Depends on how it's distributed by z1d0v · · Score: 2, Insightful

    If one can decide on several encoding formats (including lossless formats like FLAC), *and* one can also listen to it as many times as one wishes, I'm in!

  26. Comment removed by account_deleted · · Score: 5, Interesting

    Comment removed based on user account deletion

  27. really now? by LiquidMind · · Score: 4, Insightful

    "...Pearlman was careful to add, though, that he doesn't see his plan killing off demand for CDs."

    *BLANK* CDs maybe.

    i mean $.05 x 13 songs = $.65
    factor in $.25 for a blank CD and voila, that's still under a dollar. Unless they plan on *severely* reducing the price of retail CDs, I don't quite see that working out.

    --
    This sig contains repetition and redundancy.
  28. Re:Yes by ArsonSmith · · Score: 2, Funny

    hmm, must resist urge....songs buy you for 5 cen....ahhhhhhhhhh

    --
    Paying taxes to buy civilization is like paying a hooker to buy love.
  29. Canada's Laws favorable... by Fox_1 · · Score: 3, Insightful
    This is kinda of a neat statement without a lot of explanation behind it. We do have entities in place which collect revenue on behalf of the artists from different industries that benifit from the artist work. The big example is the tax on blank cd's. It sucks that I pay extra for a cd that may hold pictures instead of songs, but I'm also not blind, 1/2 of my fiances music cd collection is burned cd's. I'm also paying a fee so a DJ can play music at the wedding to some organization that gives money back to the artists. There are other little quirks and decisions made by the gov't here and courts. In December 2003, the Canadian Copyright Board stated that downloading music was legal. They also went on to say that sharing would still be considered illegal.


    Here is a site that tries to give more information on our favorable laws
    The Canadian Internet Policy and Public Interest Clinic

    --
    The rock, the vulture, and the chain
  30. Free doesn't always win - Re:No matter what ... by jackDuhRipper · · Score: 5, Insightful
    Getting music is only "free" if your time and effort are worthless: if it's easier, faster and of higher quality to get the new Beck record from iTunes , it's worth it to purchase legitimately than to try and get it other ways.

    Much like the scheme presented in the article, please remember that the "free" file sharing networks requires a broad base of participants to make them run. The utility of the "free" networks improves or deteriorates based on the numbers of people engaged in the activity of sharing freely:

    even at US$.99, I would bet there has been an affect on the quality/quantity/availability of music on the "free" sharing networks. Presumably, that would deteriorate further if "legitimate" online services appealed to an even broader audience (as some or all of that broader audience would likely participate less in the "free" networks).

  31. The curious searchers' pricing model by buckhead_buddy · · Score: 4, Interesting
    Personally, I use the iTunes store to listen to those thirty second previews of songs far more than I download music. I have a quirky set of tastes where I'll often want to find just the right version of a song. For example, after seeing the end of the Dead Like Me pilot and wanting to find that version of Que Sera, Sera that was played in a minor key toward the end, I found the iTunes music store's preview function invaluable.

    I heard many, many different variations. And most of them were sung in the style of Doris Day's version (giddy and happy and making me want to slap the singer). There were some versions that came close, but I couldn't decide whether that was what I wanted or not. Ultimately at the $1 price per song I didn't download any of my "candidates" since I didn't hear enough to convince me before the sale that that was the type I was looking for. Had the price been $0.05 per song I probably would have downloaded most of the candidates and not given the price much thought.

    While this wouldn't help sell the big name artists at all, it would get the casual music listener like me. Whether there are enough of my type around is a completely different question and one that I can't begin to answer.

    (As an aside, I never found the right version of Que Sera, Sera and in general that isn't the type of music I listen to. Just something that struck a nerve at that particular moment.)

  32. I tried, I really tried by Leo+McGarry · · Score: 4, Funny

    I tried to read the article. I really did. But when I got to the end of the second paragraph, my natural aversion to incredibly bad writing kicked in and my mouse-hand clicked the window's close box without my conscious intent.

    Peering out from under his de rigueur cap, music-industry veteran Sandy Pearlman, a former producer of the Clash and now a visiting scholar at McGill, spoke with a kind of nervous glee while describing his idea at the Canadian Music Week conference in Toronto last week.

    Awful, vapid writing? You're soaking in it.

  33. The artists make very little money from music sale by big-giant-head · · Score: 4, Interesting

    They get like maybe 1$ per cd. They've always made money from touring. The rule has been the record companies get the money from the sales and the artist gets the money from touring.

    Now the greedy record companies want a piece of artists touring money as well. The folks killing music right now are the record labels not the downloaders.

    This is a great idea, a band could pay thier own studio costs, put the music directly up for download and then who needs the record companies??
    I don't mind right now paying $.88 a song, I do have a problem that very little of that actully goes to the musicans.

    People need to face the facts record labels are as relevent in the digital age as say manufacturers of long bows, chain maille armour and broadswords.

    The people I'm referring to are of course the folks working at the record label. In this age of oursourceing, downsizing and cost cutting there is no room left for record labels that suck up 90% of the cash from music sales and then complain that they don't get enough.

    --

    So Long and Thanks for all the Fish.
  34. Re:they don't get it, do they? by wk633 · · Score: 4, Informative

    No, maybe YOU want information for free. Some of us recognize that various industry evilness aside, there are artists out there who deserve something in return for their creative work.

  35. I'm not trying to rip anybody off. by TheBrakShow · · Score: 2, Insightful

    Look, when I download something online, it is out of convenience more than simply because it is free. If you ask me, the music and movie industries have made their products inferior to that of the so-called "pirates". That is, if I purchase a movie from the store I have much less freedom with it than if I downloaded the same film via bittorrent. I'm not trying to rip anyone off. I have a subscription to netflix, I purchase DVDs and CDs regularly. I will buy music and movies because I feel bad not supporting artists. However, if I want something that is gonna play on a handheld media player, or keep me from having to change disks repeatedly and skip through advertisements, I would much prefer a "pirate version" to a legit copy. At this point, I think 99 cents is a bit much for a per-track fee. 5 cents certainly sounds reasonable. Compare 99 cents for a DRM protected copy that is still restricted to 0 cents for a copy that I can play whenever I want on any device. Which would you choose???

    Again, the music an movie industries are peddling inferior products compared to that of pirates, that is why they are losing this battle.

  36. Apple's Strategy by hugesmile · · Score: 2, Interesting
    If someone at Apple actually believes that the 5-cent model will work, then Apple should go buy a few RIAA companies and give it a try.

    If it works, then they could probably corner the music market. If not, well then it'd only be the death of a few RIAA members - no big loss...

  37. Re:Let see by br0ck · · Score: 2, Insightful

    5) High fidelity sound - iTunes only has songs encoded with lossy codecs
    6) No DRM - can rip a CD to a format that is sure to work 10 computers later
    7) Selection - iTunes doesn't have 95% of the bands I'm interested in
    8) Still the same old RIAA model - why not let indie bands post their own music and get a 50-70% cut instead of having to go through a major label (maybe they already do this and I haven't heard about it?)
    9) Liner notes, lyrics - offer full resolution liner notes and lyrics - and how about even setting the lyrics up to scroll by karaoke style as the music plays on an ipod

  38. On-demand is what we want... by HerculesMO · · Score: 2, Insightful

    Illegal downloads of music is mainly there for us to have music 'on demand' in our preference as we like to hear it. The fact of the matter is, that unless the music industry can start charging us say, $10 a month for unlimited downloads, free music will always win out.

    The $.99 they charge now is pretty much the equivalent of a CD. I can go buy a CD with cover art and all for $12 bucks... if there are 15 tracks on it (some of the BETTER bands have that many), you win out by BUYING THE CD!!

    That's why I subscribe to Yahoo's Launchcast service. I can listen to what I want, skip songs, and it's cheap ($35 a year). It learns my preferences and finds me new music.

    If they could roll that into portalble devices as well as internet service (with better quality than Launch provides..) it would be a killer service.

    Besides, artists don't make money from record sales unless they suck (ala nSync or Backdoor Boys), it's from prolonged touring.

    --
    The price is always right if someone else is paying.
  39. I'm Deaf. by tomato · · Score: 2, Insightful

    Yes really. I'm Deaf, why should I have to pay extra for my computer gear to finance other people's music habits?

  40. Re:The artists make very little money from music s by Moebius+Loop · · Score: 2, Informative

    Generally speaking, most major-label musicians *don't* make money from touring. The reason we tour is to recoup the cost of making the album.

    That's right, all that money the record company provides to record the album comes out of the artist's paycheck, *before* they even begin to see revenue from royalty payments...

    --
    have you been seen on slash?
  41. Re:The artists make very little money from music s by EspressoMachine · · Score: 5, Informative

    They get like maybe 1$ per cd.

    If only that were true. Artists generally make $.05-$.12 a CD. If you want more info about the industry and contracts, etc., I highly recommend This Business of Music. It's chock full of interesting details like formulas used to determine artist royalties. For instance, did you know the labels still take money for R&D costs on the "new technology" of the Compact Disc? Or that many still take out $$ to cover "breakage", which is a hold over from distribution of albums on vinyl?

    Oy.

    --
    Despite conventional wisdom, I've discovered you can blame a guy for trying. It's called "attempted murder".
  42. P2P by Anonymous Coward · · Score: 2, Insightful

    Well, since everyone is bitching about the CherryOS code getting "stolen" and their rights "violated," I guess Slashdot has now taken the position that P2P piracy is wrong. Suddenly, they see what it's like when someone's material is copyright infringed, and they don't like it. They're even talking about suing them...just like the RIAA does with individual infringers.

    So I guess the answer is yes, Slashdotters would pay five cents for a song rather than pirate music. Unless they are either hypocrites, or extremely cheap. But it seems suddenly Slashdotters' positions have changed overnight on copyright infringement, all because instead of a faceless corporation that has contracts with starving artists who don't get paid when you rip off their music, it's some GPL project.

    The hypocrisy here is sickening. Posting anon because I have a feeling this could get modded down for speaking out...but I just had to speak my mind. Thanks.

    1. Re:P2P by XMyth · · Score: 2, Funny

      Well, since everyone is bitching about the CherryOS code getting "stolen" and their rights "violated," I guess Slashdot has now taken the position that P2P piracy is wrong. Suddenly, they see what it's like when someone's material is copyright infringed, and they don't like it. They're even talking about suing them...just like the RIAA does with individual infringers.

      So I guess the answer is yes, Slashdotters would pay five cents for a song rather than pirate music. Unless they are either hypocrites, or extremely cheap. But it seems suddenly Slashdotters' positions have changed overnight on copyright infringement, all because instead of a faceless corporation that has contracts with starving artists who don't get paid when you rip off their music, it's some GPL project.

      The hypocrisy here is sickening. Posting anon because I have a feeling this could get modded down for speaking out...but I just had to speak my mind. Thanks.



      Yes...last time I checked the Slashdot Hive Mind's position on copyright infringement did change overnight. That was very insightful of you to pick up on it.

      It is a good thing you did post anonymously. I hope you also used either an open 802.11 connection (with a wireless card that you stole or can't be tracked back to you) or at least bounced your connection across 3 or more anonymous proxies. If not, I fear your life may be in danger.

      Take care my friend and don't let the man keep you down! Keep up the good fight!

  43. Re:Speaking as a musician by Shawn+Parr · · Score: 2, Informative
    As a musician you shouldn't discount things like the iTMS. It is very easy for independant artists to get their music submitted there.

    CD Baby has a great Digital Distribution system that is very musician friendly. I worked with a group, Pig Farmers of the Apocalypse, who have done this very thing. For us to publish it cost $35 to set up with CD Baby, $20 for a UPC label, and the costs of manufacturing disks. CD Baby sends it to most of the online distribution companies by clicking a link, and giving a couple more sentances worth of information. Of the $.10 and $.55 that would usually go to artist and label, CD Baby calls it $.65 and takes 9%, only 7 cents, per track. If your music is good, and it sounds like it is, than you really shouldn't overlook this opportunity. Any income to help pay for the costs involved with the album are welcome, plus they can help get the word out to a larger audience as well. If you market yourself well, this can end up being a way better system than using a major label.

  44. Don't quit your day job by jfengel · · Score: 2, Insightful

    The subject line is facetious; I listed to a couple of tracks and they sounded pretty good. If you were playing my local club I wouldn't suddenly feel compelled to go outside for a smoke.

    But I wouldn't call the marketing machine a BFD. It's the difference between you doing this for kicks on evenings and weekends and becoming a multi-zillionaire, making videos, playing stadiums, getting a heroin habit, and eventually your own biography on E!.

    Seriously, it's a matter of to-each-his-own. You wanna make music, go for it. You don't care about the RIAA, and they don't give a rat's ass about you. But it appears that an awful lot of people listen to the marketing, and buy the music. They get rich; you get to have a day job.

    Yeah, most of 'em lose. I'm in the same boat: I'm a part-time actor and I don't want to participate in the Hollywood machine that could make me famous and give me all the parts I want (.0001%) or suck my soul and leave me waiting tables (99.9999%). But Vin Diesel gets to work with Judi Dench and I played a house with 4 people the other night.

    So don't dis the marketing machine. It's not that they'll come down on you. They'll do worse: they'll ignore you. If you like it that way, more power to ya.

    Me? I like club music in clubs. No matter how good a band is it doesn't have any energy on a stereo, no matter how much you spend on it. So if you make it to Nation in DC, I'll see ya. If not, keep on it.

  45. Re:Speaking as a musician by zeet · · Score: 2, Informative

    They also spam.

    Or rather, send out marketing e-mails after you've specifically made sure to uncheck the 'send me newsletters' checkboxes.

  46. Re:Speaking as a musician by ZephyrXero · · Score: 4, Interesting

    Your argument pretty much justifies the things that I have been saying for years. Most bands don't make hardly any money off CD sales in the first place, they make their money through live shows and merch. So, I never understood why all these big bands/performers complained so much about us downloading their songs...

    But, then you also have to take into consideration musicians who only produce studio work and never play live. There are quite a few people, especially in electronica, who only record music and never set foot on a stage.

    I say a mixture is in order. Release all your songs online in a lossy format, with a slightly sub par bitrate, and allow them to be distributed freely (96k mp3 or even better, a Q0(~64k) Ogg). Then charge people for the "full quality" CDs or Lossless (FLAC,etc) files. I wouldn't mind paying $1 for each song if I got to download a "decent", full length version of it for free and try it out for a while first. And of course, no DRM encumbered formats would be used ;) I always "try before I buy" with my music these days. If you make good music, you have nothing to lose. If you are a no talent, one hit wonder pop star, then you don't deserve to be in the music industry in the first place. My current favorite band, Celldweller, has no record label and distributes the majority of their music from the web.

    --
    "A truly wise man realizes he knows nothing."
  47. Re:Speaking as a musician by Peteski_BC · · Score: 2, Informative

    "Once you get word-of-mouth advertisement happening, then you can start making your money from playing live shows." Well, as someone who has toured . . . . . Very few acts make money on the road. For most acts, the cost of travel, shipping gear, tour busses, crew etc far exceeds the revenues from performance. In fact, the majority of concerts you see are there because the record label pumps in money in what is known as 'tour support'. You are 100% dead on when you say the cost of putting a demo or CD together is expensive. However, for most musicians their income will come from CD sales, and radio licence fees. Performance, except for the ULTRA huge acts, generally costs money. BTW - I think the 5/c per song idea is *great* as long as that money goes to the MUSICIANS and not some record label. Come on you guys, you can't possibly say that *FIVE CENTS* to download a CD quality file is 'too much'. You would be able to download 100 full length songs at CD quality for FIVE BUCKS!!! Dude, that's less than two Latte's!!.

  48. Let's Tax Cars Too... by ddpg · · Score: 2, Insightful

    I would pay the 5 cents per song, but I would not pay a 1 percent tax on internet services or computers. Although drastically reducing the price of a product usually does not make sense, it does in this case. I'm sure the music industry would make a lot more money than they are now... then they can sue people for $150,000 because they illegally downloaded $50 in music.

    Although computers are used to illegaly download music doesn't mean that we need to tax them to help offset the loss to the music industry. By this reasoning, we should be charging a sales tax on vehicles because they may be used in robberies as a getaway car and send all the proceeds to banks. We should also tax copiers because they may be used to duplicate books.

    We really do not need any taxes like this. The music industry does not need an automatic subsidy. What they need is a additude adjustment.

  49. Re:Yep. And it is called.... by HuguesT · · Score: 5, Insightful

    The point is that the RIAA aren't a monopoly any more. They are competing with "free" downloads.

    The other points are that "free" downloads are not free. You need to spend time searching for songs, wading through the crap, learning new tools as the RIAA fight the old ones, and there is a risk of getting caught, etc.

    The final point of the article is that legal music distributors can regain the advantage if they offer a cheap, quality service as a competition to the eDonkeys of the world.

    Hence there is competition going on, and as long as the RIAA doesn't understand it at that level, the situation will not improve for them.

  50. Of course by zpok · · Score: 2, Interesting

    Of course I would pay 5 c for a song. For that price you can't even buy a whistle. A guitar costs fortunes, and anyway, my voice sucks big time.

    It's an interesting idea, maybe even applicable to other areas as well.

    I know I'm going to get a lot of "hippie commie shitheat" comments, but it would be a wonderful thing if we could get this money thing behind us. It's a great way to barter, it's so universal one could almost believe it's pre-wired like language, it beats having to kick your neighbour out of the tree to keep your bananas (like our close cousins do...) but after so many thousands of years of social and technical evolution it would be great to find a meaningful way to feed the tribe without all this money and poverty stuff.

    --
    I think, therefore I am...I think.
  51. The idea's fine; $0.05 is insane by gilgamesh2001 · · Score: 2, Insightful
    At 5 cents a song, why would any company do this? Maintaining infrastructure to support the service, and the simple download costs per song probably vastly exceed the return you'd get from 5 cents a song.

    I don't know what the giants like Google and Apple pay for bandwidth, but assume it's way better than what you and I pay, and maybe it's 50 cents a gig. OK, a song is 50 megs ... do the math and just letting someone download it costs the company 5 cents. Bang goes your 5 cent model.

    Assume their bandwith costs are half that. You're still paying out half your revenue before even starting to cover any of your other costs. Insane.

    Now, if you built the model right into a peer-to-peer sharing network that would still collect the cash, you'd spread the cost of downloads onto a diffuse group of users/clients, and therefore maybe be a little more do-able. But then, of course, you introduce all kinds of new issues with security, payment, etc. etc.

    Again, the model is not crazy. The price is.

    John Koetsier
    http://gilgamesh.ca/

  52. WHAT guilty conscience? by Robber+Baron · · Score: 2, Interesting

    They've been given it away for free for years on the radio. I can go over to my friend's place and listen to his music for free. Plus the whole concept of receiving payment for recordings of music was unheard of, prior to the advent of recording technology. Prior to that, musicians got paid when they played...to an audience. Now the ability to mass replicate digital media across a shared network has rendered the "payment for recordings" model obsolete, which had in turn made obsolete a different model. How does guilt even enter into the picture? There is no guilt. "Guilt" in this instance is an artifical construct of the record industry, trying to stave off obsolescence.

    --

    You're using her as bait, Master!

  53. Never Pay Forced Royalties on Hardware or Service by Wanderer1 · · Score: 2, Insightful

    I refuse to pay ROYALTIES on HARDWARE and INTERNET SERVICE simply because the equipment is capable of rendering music and movies. It's as silly as being forced to buy "music" branded CD-R media to run in a dedicated audio CD recorder simply because the machine is capable of recording something that I may not have original rights to.

    We should be turning our attention instead to finding ways to reverse the legislative abuses placed by the industry. The greater issue is how the Industry is abusing society with unreasonable copyright and distribution dominance.

    Not only are theoretical and applied research being destroyed in the name of profit, but also our creativity in art. This is not a legacy that will perpetuate society over the long term.

    These laws are, quite simply unsustainable.

  54. I've got a much better solution by seguso · · Score: 2, Interesting
    Let artists be paid in advance, directly by consumers, before releasing their works; and then, after a work has been released, let it be freely copiable and shareable.

    Artists would simply say "I want to be paid X dollars for my new work. Please donate to this paypal account. Each one of you can donate freely, or not donate at all. When, and if, the overall donation reaches X, I will release my work for free".

    The author of Mute (a file sharing application) is doing this.

  55. Re:Piracy by any other name... by Jason+Ford · · Score: 3, Interesting

    Please explain to me why that was wrong.

    Simple, because you thought for yourself, instead of relying on the state's definition of right and wrong. Next thing you know, you'll decide that you don't need the government telling you what substances you can put into your body or what constitutes obscenity. What happens when everybody starts thinking for himself or herself, substituting their own judgment for that of career politicians?

    --
    I did not become a vegetarian for my health, I did it for the health of the chickens. --Isaac Bashevis Singer
  56. Has the music industry taken Econ 101 though? by metamatic · · Score: 4, Insightful
    As you increase price, you decrease volume. There is always a sweet spot that maximizes profit.

    Well, I don't know about you, but my perception is that the music industry is way over to the right of the "sweet spot" on the sales-against-price graph. I hardly ever buy CDs these days, because I hardly ever see them for a price I'm willing to pay.

    When Mute Records released a sizeable chunk of their back-catalog for under $10, I sent in a $150 order--as opposed to a $0 order while the prices were $15 and up.

    As I wrote to a record store owner who was wondering how he could stay in business: I could easily put together a list of ten CDs I'd buy tomorrow if they were $10 or less. But they're not, so I spend $0 and wait for a sale.

    --
    GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
  57. Re:Wrong question... by ThePhin · · Score: 2, Insightful

    Therefore, there's only one option open to me.

    Do without?

  58. Here's your 1 percent... right here... by hoggoth · · Score: 2, Insightful

    From TFA: "In addition, a 1 per cent sales tax would be placed on Internet services and new computers"

    I don't care about downloaded music. I don't bother with it. I shouldn't have to pay a sales tax to the RIAA for product I am not using. My company has hundreds of computers and CERTAINLY shouldn't have to pay the F*ing music industry for their workstations!

    Can you imagine telling Citibank, Exxon, Chase, IBM, etc. they have to pay the RIAA a tax for every desk?!

    This is the stupidest idea since... well since paying a tax on every blank CD sold.

    --
    - For the complete works of Shakespeare: cat /dev/random (may take some time)
  59. good idea by zogger · · Score: 2, Interesting

    They should have done this years ago, cut napster and that sort of thing off totally by offering something similar just priced to reflect the savings that advanced tech obviously allows.. They even got asked,they got warned, yet the "industry" refused, they wanted to (still do really) monopolise digital technology. They would have sold billions more with a hundred songs on a CD for 3 dollars, rather than 10 songs for 15$. And I think it's because to the high level execs who make these decision, 15$ is chump change, they have no personal basis in reality how much 15$ really is to most people. They even resisted 99 cents a song, to them that is already close to "free". It gives them the feinting fantoids to think of something less than that.

    No idea if 5 cents is a real answer, but I would think exactly doubling actual distribution cost would leave plenty of profit to go around and it would be cheap as all get out compared to what it is now. Say it costs a few pennies to distribute it on the net, double that, whatever it actually is as a price there. If tech improves so that transmitting it gets cheaper, then they can actually drop the price again, but keep the same margins.

    Really,and I'm glad this professor was swinging the clue stick hard at that conference, I hope he cracked some heads with it, because a market works best when both parties are very very happy with the exchange. If only one party is very happy and the other one is merely reluctantly content or actually annoyed, that particular market is not efficient enough yet.

    It's obvious there's a huge entertainment market, the demand is there, it just needs to be cheap enough to keep the demand side happy so they are content to actually make the exchange for their money. That leaves it on the producers and distributors side, what could make them happy? So far it looks like they are being beyond unreasonable in pricing and in transfer modality, hence, so called "piracy" took off. Instead of making their customers happy, they pissed them off, year after year, now they wonder why they have problems. A nickle a song and a dollar a movie (whatever) would go a long ways to alleviate that.

  60. CDs are cheap? No they're not! by jonskerr · · Score: 2, Interesting

    Your entire argument is predicated on the WRONG notion that entertainment is something people have to pay professionals for. People have lived together in communities for thousands of years and provided free entertainment to each other FREE OF CHARGE for that entire time. Professional entertainers aren't the norm for human society, and are one of the worst things to come out of technology. The technology of entertainment allows people to sit alone, separate from the communities they live in, quietly going mad.
    A friend of mine goes to west africa and lives in a desperately impoverished village for three months every year. The people there can't afford schools or medical/dental care, and getting a bad tooth can kill a person, when getting it pulled for $20 is far beyond the means of anyone in the village. But those people are constantly surrounded by beautiful music, for free, and they're loved and cherished by each other. None of them ever is dissatisfied with their life either.
    How many people in our society can even sign a song worth a shit? Or play a musical instrument? Songs people hear now are written by and for professionals with professional range and training. People used to sit around in groups drinking, socializing, and singing normal songs with accoustic instruments. Folk music, the music of the folks, regular people, is no longer seen as acceptable, so people have worked their way into a corner. The death of the music/entertainment industry would be a huge boon for society at large. I'd personally like to see a ban on electronic entertainment of any kind for two or three hours one night a week. No TV, close the movie theaters. Couldn't really stop people from watching their own movies in their houses, but if enough neighborhoods had obvious social gatherings, people would turn off their own movie players and go outside. Maybe even start dancing!

    Oh, and BTW, books are cheaper than CDs.

    --
    O~ Him that studies revenge keeps his own wounds green. -- Francis Bacon
  61. Of COURSE it would! by jonskerr · · Score: 2, Interesting

    >The point is that the market will not increase substantially to make up for a 94% price drop.

    What market on earth wouldn't increase _exponentially_ if there wasn't a 94% price drop? I know I'd be on that nickel-a-song bandwagon in no time. There are literally TONS of people who currently don't buy online music because .99 is too much money to pay.

    --
    O~ Him that studies revenge keeps his own wounds green. -- Francis Bacon
    1. Re:Of COURSE it would! by OldeTimeGeek · · Score: 2, Insightful
      There are literally TONS of people who currently don't buy online music because .99 is too much money to pay.

      And there are even more people that will refuse any price, no matter how low.

      People who download music now are used to getting it for nothing. How do you propose to convince someone to pay for something that they are used to getting for free?

  62. What about songwriters' 6 cents? by balaam's+ass · · Score: 2, Insightful

    Hi. I'm a songwriter and recording artist.
    Do I still get my 6 cents every time my song is played commercially? Since this 5 cent price applies to "private" downloads, then I'm guessing it's probably just regular sales royalties that are "affected" (and by that I mean "wiped out").
    Anybody know?

    /hard enough to make a living already

  63. A better solution, Open Music Service by bergwitz · · Score: 2, Insightful

    Pearlman is on to something. Though, his plan will effectively create a monopoly, a single system for distribution of music. He even proposes that the major music labels should be bought by computer manufacturers.

    I believe I have a better plan. It is a simple add-on to the Creative Commons NC-license which says something like: "You may use this commercially if you pay X % in royalties to the copyright holder trough the Open Music Service". The Open Music Service collects royalties worldwide and gives it to the copyright owners.

    The goal is that anyone may start their own online music store and sell music at whatever price they seem like (royalties always beeing in percentages). A completly free market for music distribution in which the artists gets paid. Likewise, artists would simply have to make a contract with the Open Music Service and "click" you are distributed world wide.

    Q: Why would people pay for music they may download for free? (AKA "competing with free")
    A: Because it is more convient to go to a site dedicated to music you like and pay 5 cents for a download than to search trough the p2p networks. The dedicated site may even help you find new music you like, something the p2p networks can't do on their own.

    I also believe this to be more realistic than Pearlmans suggestion as you don't need the major labels to start with. Just get the self-distributing artists and some indie labels to sign on (they would definetly get more income with this system) and you have an established alternative.

    That's the barebones. As I've been working on this idea for over a year, there is of course more.
    Actually, I've been meaning to start a company based on the idea, but haven't gotten very far. If you want to get involved, please drop me a line.

    --
    Evolution is just a scientific theory. Creationism is not.
  64. I know I would use it by SocietyoftheFist · · Score: 2, Informative

    I used Napster for exactly the reason that I downloaded music that I didn't think was worth buying. I downloaded litterally hundreds of songs for a theme party. I personally wouldn't want to purchase the singles or albums but I would've paid $.05-$.10 for each download of those songs, because that is about what I thought they were worth to me. I buy CD's of music I like and rip them to put on my iPod and then download music that I don't feel is worth the asking price.

  65. Still Fighting after the revolution by Freaky+Spook · · Score: 2, Insightful

    After downloading music for the past 8 years, I find it a much better way to get my music, & apparently most of the world seems to think so too.

    The RIAA lost its Monopoly of its industry, they spend a good 4 years writing off music downloads saying it wouldn't work because not one of the idiots thought about inventing a new buisness model to adapt to the changing technology, their current buisness model didn't fit so they decided to write it off.

    They were so blind in doing so I don't understand for how much those guys must pay their strategic planners they completley failed to miss the .com revolution.

    Move ahead to now & they are still trying to work it out, their own stupidity in trying to maintain a monopoly they no longer have is effecting their music sales, not Illegal downloads.

    People no longer care about particular songs, music is the new fast food, u listen to it, get bored of it, chuck it out & get something new. WHen will the RIAA realise that, if they make songs 5c each people would dowload many, constantly, thats what the P2P netoworks do, no one is downloading music going "hehe sucked into the RIAA", they are downlading it because its a service that gives them what they need.

    The IPod is proving that theory with people not concerned about what songs they put on there just as long as they can fill it up & with the IPpod shuffle now out playing completley random tracks it just show's that people don't really care what they listen too, they just want a lot of music.

    The RIAA needs to wake up to themselves, they have lost the battle, its time to accept defeat & start re-inventing themselves