A grand opportunity exists to improve the intellectual abilities of American youth, while reinvigorating our music and technology industries, at zero taxpayer cost. The short-term key to this project is the promotion of home computer interactive music applications that allow users to mix and remix songs based on the principles of harmonic mixing, which is simply the process of mixing songs in compatible keys. The long-term key to this project is corporate-sponsored formal music education in middle schools, facilitated by interactive music applications.
Our solution will simultaneously remedy major short and long term problems of the music industry, offer significant profit potential for technology companies, enhance music education and interactivity for consumers, and improve the cognitive abilities of American youth. It is a winning situation for all sectors.
1. ASSUMPTIONS:
- Record companies suffer from "market myopia." The entertainment market is generally a zero sum game, with newer forms of entertainment displacing established segments. The music market is shrinking as interactive entertainment (video games, websurfing, enhanced DVDs, etc.) takes an increasing share of discretionary income within the entertainment market. Even within the diminished music market, the CD market is also shrinking as CDs are displaced by music DVDs and broadband streams offering greater perceived value to music consumers. Although these newer attractions have displaced CDs, record executives' tunnel vision isolates the CD market from broader entertainment markets. The record industry refuses to deal with this new reality, and instead blames pirate downloads for their revenue drop. Pirates are convenient scapegoats. Unless the record industry can meet the challenge of interactive entertainment, it will continue to shrivel.
Anti-piracy arguments presume that consumers would have otherwise purchased free downloads, but this presumption ignores the principle of "price elasticity of demand": If all pirate downloads were stopped, consumers would only purchase a fraction of those songs. In the total absence of pirate downloads, CD sales would have dropped because many consumers now prefer interactive entertainment. Passive electronic entertainment (CDs, broadcast radio & TV) has lost market share.
- Record companies cannot block pirate downloads. They now seek a competitive advantage over pirate networks such as Kazaa, but have yet to design a viable business model for licensed downloads. Partnerships such as the Echo Network, and enterprises such as Listen.com, will offer licensed downloads with varying degrees of success. Apple's iTunes system serves as a model for enhancement, by newcomers Microsoft, Amazon.com and AOL. Licensed download systems will position themselves with other premium media, offering similar value over pirates as cable systems enjoy over broadcast TV, and broadband enjoys over dialup ISPs.
- Music consumers will pay for licensed downloads only if their perceived benefits, including portability between various devices, outweigh their costs. Licensed downloads offer the inherent advantages of speed, accuracy, safety and sound quality. Their appeal would increase with additional features useful in interactive music applications, such as bonus song versions (instrumentals, a cappella versions, etc.) and mixing information (key and speed data). Encouraging consumer interactive music applications could double sales of leading edge home computers. These applications could be as much fun as videogames, yet much more beneficial to all involved.
- Home computers operating below 2GHz are quick enough for the vast majority of home applications. Only some extreme games and audio/visual applications can effectively use the speed of leading edge home computers. Since consoles dominate extreme gaming, and since consumer video applications are still in the early adopter stage, audio applications can drive the market for leading edge C
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A grand opportunity exists to improve the intellectual abilities of American youth, while reinvigorating our music and technology industries, at zero taxpayer cost. The short-term key to this project is the promotion of home computer interactive music applications that allow users to mix and remix songs based on the principles of harmonic mixing, which is simply the process of mixing songs in compatible keys. The long-term key to this project is corporate-sponsored formal music education in middle schools, facilitated by interactive music applications.
Our solution will simultaneously remedy major short and long term problems of the music industry, offer significant profit potential for technology companies, enhance music education and interactivity for consumers, and improve the cognitive abilities of American youth. It is a winning situation for all sectors.
1. ASSUMPTIONS:
- Record companies suffer from "market myopia." The entertainment market is generally a zero sum game, with newer forms of entertainment displacing established segments. The music market is shrinking as interactive entertainment (video games, websurfing, enhanced DVDs, etc.) takes an increasing share of discretionary income within the entertainment market. Even within the diminished music market, the CD market is also shrinking as CDs are displaced by music DVDs and broadband streams offering greater perceived value to music consumers. Although these newer attractions have displaced CDs, record executives' tunnel vision isolates the CD market from broader entertainment markets. The record industry refuses to deal with this new reality, and instead blames pirate downloads for their revenue drop. Pirates are convenient scapegoats. Unless the record industry can meet the challenge of interactive entertainment, it will continue to shrivel.
Anti-piracy arguments presume that consumers would have otherwise purchased free downloads, but this presumption ignores the principle of "price elasticity of demand": If all pirate downloads were stopped, consumers would only purchase a fraction of those songs. In the total absence of pirate downloads, CD sales would have dropped because many consumers now prefer interactive entertainment. Passive electronic entertainment (CDs, broadcast radio & TV) has lost market share.
- Record companies cannot block pirate downloads. They now seek a competitive advantage over pirate networks such as Kazaa, but have yet to design a viable business model for licensed downloads. Partnerships such as the Echo Network, and enterprises such as Listen.com, will offer licensed downloads with varying degrees of success. Apple's iTunes system serves as a model for enhancement, by newcomers Microsoft, Amazon.com and AOL. Licensed download systems will position themselves with other premium media, offering similar value over pirates as cable systems enjoy over broadcast TV, and broadband enjoys over dialup ISPs.
- Music consumers will pay for licensed downloads only if their perceived benefits, including portability between various devices, outweigh their costs. Licensed downloads offer the inherent advantages of speed, accuracy, safety and sound quality. Their appeal would increase with additional features useful in interactive music applications, such as bonus song versions (instrumentals, a cappella versions, etc.) and mixing information (key and speed data). Encouraging consumer interactive music applications could double sales of leading edge home computers. These applications could be as much fun as videogames, yet much more beneficial to all involved.
- Home computers operating below 2GHz are quick enough for the vast majority of home applications. Only some extreme games and audio/visual applications can effectively use the speed of leading edge home computers. Since consoles dominate extreme gaming, and since consumer video applications are still in the early adopter stage, audio applications can drive the market for leading edge C