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Business Week Trashes RIAA's Strategy







Business Week Trashes RIAA's Strategy

Business Week Trashes RIAA's Strategy 01/26/2004 09:53 PM

Even Business Week, which you might expect to side with the big recording industry over the consumer, has an article suggesting that the latest lawsuits from the industry are their worst move yet, and things are only going to get worse for them. The article points out, as many people have been saying, that each move by the recording industry only drives those sharing music files further underground while making them even less receptive to any eventual embrace from the industry. While we've discussed this plenty of times, what's interesting here is the fact that a magazine like Business Week is coming to the same conclusion. For a while, the industry insisted that it was only a bunch of kids "stealing" music who were against the actions they were taking. However, when big name business publications start trashing the strategy as well, you'd think the industry might start to pay attention.




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Business Week Trashes RIAA's Strategy

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That taking has consequences, human and creative. [Some of the consequences are good, some are bad. Separating them, however, is a pain and may not be possible.] My companies make money almost exclusively from the sale of our creative product. [And they still can, they will have to make some adjustments to their business model.] We don't have a performance right on radio and therefore derive no income from radio play. [Welcome to the wonderful world of "when Congress tries to dictate business models." And so, the RIAA proposes a sequel.] We don't make money from artist tours or merchandise. [And why is that? Is there a law against it? If so, I would recommend it be repealed.] We don't make money from endorsements of other products. [Is someone stopping them from doing that?] We just sell recorded music. [You're free to structure business however you like.]

We take profits from sales – when we're good and lucky enough to get them - and plow money back into the search for that next great talent who will thrill music fans around the globe. [I guess the industry must have been bad these last few years.] When we think we have found that talent, we invest huge amounts to sign, nurture, promote and distribute their creative product. [And the RIAA is the only way talent can be found and promoted, because?] Our economic vitality is based on generating hits – finding special talents that enjoy strong commercial appeal. [And we should care about the hit-maker mentality, because?]

Link (Thanks, Ernest!)

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No free music. No free speech
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