Tuesday, October 09, 2007

Paradigm Shift

It seems that the music industry's marketing focus is about using litigation (or the threat thereof) and attempts at DRM to force people to pay for the music they listen to. This effort is based on the fact that music in digital form is extremely easy to copy and give away. We (the wife and I) think that it is time for all smart people to sit down for a moment to think of a way for people to 1) be able to freely listen to music while 2) allowing the artists, writers, performers and publishers to make some money. In other words: we need a paradigm shift. Here are some thoughts to ponder:

  1. Current paradigm involving the public (i.e. a normal citizen obtains a copy of a musical recording): Legitimate copies are generated by the publisher and sold to the public in various physical and electronic forms. Each copy is sold with the understanding that only the official copy is authorized and that the copying and/or distribution of unauthorized copies is strictly forbidden. Musicians, writers, and publishers receive proceeds from the sale of each official copy.

    Problem with this paradigm: unofficial copies abound which dilutes the revenues from the proceeds of the sale of official copies.

    Possible paradigm shift: Assume that rampant unauthorized duplication and distribution will occur, so uncouple revenues from sales and couple them to a secondary stream such as advertising, concerts, appearances, merchandising or licensing. Use the unauthorized duplication and distribution as free advertising for the stuff you are selling.

    Remember, you only make money on the first sale, then like used books or cars, no revenue is generated by resales or giveaways of the original, authorized material. Using the shifted paradigm, every sale works in your favor as advertising.
  2. Current paradigm of using fear and intimidation to spur sales: Of course, everyone knows all of the laws pertaining to fair use and copyright, therefore everyone who has a computer and listens to music is a thief, right?

    Problem with this paradigm: people really don't like to be stereotyped, especially as bad people. This paradigm will eventually lead to a serious backlash by the people who you expect to shell out a lot of hard-earned money for a little plastic disc or an electronic file. People are already having a hard time justifying $15 for a disc that has 14 tracks of which they only want one.

    Possible paradigm shift:  Assume that most people (customers!) are honest, law abiding citizens who are not aware of the issues regarding copying of copyrighted materials. Instead of litigation, try education and information. Try offering services that make it easier to buy one track at a time. Ditch DRM and make it easier for users (customers!) to use MP3 players. I think that there is a rule of law that states: "innocent until proven guilty."

These are just a couple of thought provoking ideas that I put out for your consideration. I will publish more as I come up with them.

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