Actually, more like $18,999,999.99!
Consider for a moment that you could induce the music producers to license a CD to you for re-distribution... (i.e. the normal notion of fair use of a single product sold to a single individual is void) You'd probably have to pay quite a bit for that, don't you think?
Of course, the music producers wouldn't want to destroy their ability to distribute thier own music through "record stores" (CD stores?)... or would they?
What if you could pay the RIAA more than their otherwise realized income on even fewer sales? What if you could ensure a long-term non-physical distribution channel? Do you think they'd be willing to give you the license then? You betchyer bobby-sox!
Three major reasons (off the top of my head) this is possible:
1. Physical production and distribution is expensive compared to electronic methods.
2. CD stores will not exist forever (let's face it) and it's time to plan for the future... You know they probably think about it everytime they take someone to court/settlement.
3. Decades of revenues already lost due to bad pricing policies. Any economist would tell you they've missed decades of opportunity for increased revenue... One word: ELASTICITY! Pricing every CD between $13.99 and $18.99 is simply not intelligent when so many more people would buy it if it was cheaper.
Summary: We're right to question the fair-use of a single user product, but it may still be lucrative to pay our way around fair-use as a corporation, offer music cheaper, and make more money for everyone who has staying power.
(Buh-bye CD stores... You didn't really think selling information at physical retail locations would last forever, did you? The shame!)
Indeed, principals of a corporation have liability for its actions, but only in-so-far as their interest in the corporation. An individual who is the sole director and owner will have liability and taxes.
However, that liability and taxes are different than that of an individual, and this CAN be used to the advantage of the individual.
Consider, for example, that corporate taxation occurs only on net income, after all expenses are considered. You can pay for your car, your insurance, your mortgage expenses, etc. all with pre-tax dollars of your corporation. Compare this to the rest of us 9-5 schmucks who give out 30-40% of EVERYTHING WE MAKE to the government and THEN pay our expenses. Would you rather pay 30% on $40,000 ($12,000) or 40% on $10,000 ($4,000)?
This won't work for us poor schleps who work for someone else as the government takes a chunk of our butt every pay day. Nonetheless, if you're an independent contractor and you haven't incorporated yet... you're paying the government WAY too much.
As for the "Best Idea Ever," I believe there are too many doom-sayers out there with excuses why it won't work, and not enough innovators searching for new ways to MAKE it work. I (or you) may hold the answers, but if you don't try to find them, you won't.
Slashdot Mirror
Actually, more like $18,999,999.99! Consider for a moment that you could induce the music producers to license a CD to you for re-distribution... (i.e. the normal notion of fair use of a single product sold to a single individual is void) You'd probably have to pay quite a bit for that, don't you think? Of course, the music producers wouldn't want to destroy their ability to distribute thier own music through "record stores" (CD stores?)... or would they? What if you could pay the RIAA more than their otherwise realized income on even fewer sales? What if you could ensure a long-term non-physical distribution channel? Do you think they'd be willing to give you the license then? You betchyer bobby-sox! Three major reasons (off the top of my head) this is possible: 1. Physical production and distribution is expensive compared to electronic methods. 2. CD stores will not exist forever (let's face it) and it's time to plan for the future... You know they probably think about it everytime they take someone to court/settlement. 3. Decades of revenues already lost due to bad pricing policies. Any economist would tell you they've missed decades of opportunity for increased revenue... One word: ELASTICITY! Pricing every CD between $13.99 and $18.99 is simply not intelligent when so many more people would buy it if it was cheaper. Summary: We're right to question the fair-use of a single user product, but it may still be lucrative to pay our way around fair-use as a corporation, offer music cheaper, and make more money for everyone who has staying power. (Buh-bye CD stores... You didn't really think selling information at physical retail locations would last forever, did you? The shame!)
Indeed, principals of a corporation have liability for its actions, but only in-so-far as their interest in the corporation. An individual who is the sole director and owner will have liability and taxes. However, that liability and taxes are different than that of an individual, and this CAN be used to the advantage of the individual. Consider, for example, that corporate taxation occurs only on net income, after all expenses are considered. You can pay for your car, your insurance, your mortgage expenses, etc. all with pre-tax dollars of your corporation. Compare this to the rest of us 9-5 schmucks who give out 30-40% of EVERYTHING WE MAKE to the government and THEN pay our expenses. Would you rather pay 30% on $40,000 ($12,000) or 40% on $10,000 ($4,000)? This won't work for us poor schleps who work for someone else as the government takes a chunk of our butt every pay day. Nonetheless, if you're an independent contractor and you haven't incorporated yet... you're paying the government WAY too much. As for the "Best Idea Ever," I believe there are too many doom-sayers out there with excuses why it won't work, and not enough innovators searching for new ways to MAKE it work. I (or you) may hold the answers, but if you don't try to find them, you won't.