Friday, July 04, 2008

A new business model for the music industry

"Simply put, the internet is fundamentally incompatible with the music industry’s sales-based revenue model. Every internet user, whether or not involved in P2P or social networking, and every webcaster, podcaster, or other audio service provider in the world is a potential source of unauthorised mass distribution of recorded music in pristine and unprotected form. Through the internet, the market for sale of individual recordings can be saturated in a moment’s time and without payment of any royalties. The actual amount at risk may be greater for larger rights holders; but all rights holders, large and small, are impacted to the extent they derive revenue from sales of recordings.

"The industry’s efforts to salvage its sales-based revenue model have compelled it to resist consumer demand for full, unfettered, DRM-free access to music; blocked consumer electronics makers and technology firms from offering new products with next generation capabilities; limited the growth of webcasting and other digital audio services; chilled free speech and interfered with academic freedom on university campuses; caused distortions in the music licensing marketplace; relegated consumers to black-market services where adware, spyware, and privacy violations abound; and exposed consumers to ruinous infringement liability damages for conduct occurring in the privacy of their homes.

"And for it all, the industry’s efforts have resulted in fewer licensed transmissions of fewer works and slowed the growth of royalties that songwriters, music publishers, recording artists and record labels otherwise may have earned." —Bennett Lincoff

1 comment:

josey said...

Im a Media Management student at MCNY and I just learned about this in my Law class. It is very crazy what is happeninin the industry. There has to be some kind of solution or revolution to salvage the Music industry.