No More Money for Nothing

Record companies are not happy these days. CD sales are slumping. It is predicted that this will be the worst year in nearly three decades. Of course artists and record company executives will still make lots and lots of money. Obscene amounts of money. Just less obscene amounts.

Legal digital downloads are much less lucrative than CDs, especially because customers can download just the tracks they want. Band and artists can’t put out two or three really good tracks on a CD and expect to get the full whack for it.

And what’s got to really irritate the grey suits that are used to running the industry? Not listeners who file share, but bands who don’t need them any more. They have to wonder how many more bands like Arctic Monkeys are out there. We are in the midst of a serious paradigm shift.

And I didn’t mean to leave out file sharing altogether. Record companies weren’t so worried when file sharing was making a cassette copy of your vinyl, or even your CD, for a friend. Really, that’s all that’s happening now. The only difference is that people have a lot of friends, with the means to share with all of them, and they are completely unbounded by geography.

I think the record companies are eventually going to completely lose out on the file sharing argument. I’m not saying they have a valid position in intellectual property law, but what we have is a new way of thinking about intellectual property due to the realities of the information age.

It’s a bit like why am I going to buy Encarta when I can use (and even participate in) Wikipedia? Or newspaper websites that have tried to charge for the news – still trying to live in the age of the cover price. Most of the time, I can find someone else with the story for free. The Times recently revamped their website and tried to put the newspaper edition with all the stories behind a subscription. When I went to have a look just now to see how much a subscription to that edition is, I discovered that it is free again, even though they haven’t publicised this and you have to know which link to click on (BTW, it is the “Our Papers” link on the right-hand side of the top row of the menu).

Record companies executives are just going to have to come up with other ways of making money that are viable in the current marketplace. Otherwise, they are going to have to put up with less stratospheric salaries.

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One Response to No More Money for Nothing

  1. I love music and likely had done more than my part in giving the grey suits what they thought they were worth.

    I am not against people making money, but it just seems to me that the entertainment industry is way out of control.

    Mere mortals making millions per movie, and rock musicians making so much money that they don’t know what to with it all, to the point that it always seems to get spent on drugs and living like the devil.

    So for that reason, I am kind of glad about this shift. Perhaps we just really do need to re-think the amount of money that we seem willing to pay for entertainment.

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