"An era can be said to end when its basic illusions are exhausted." - Arthur Miller

Tuesday, October 04, 2005

RIAA Wars continue

RIAA continues it bloody war on online music trading. No side is safe as the RIAA has made it clear that everyone, wether a customer or not is fair game if it will add bills to the coffers. Recently it claimed a few casulties with WinMX shutting down and eDonkey calling it quits today. In addition they have recently launched another salvo against consumers, filing 757 more suits bringing the total to 14,8000. In addition they have attempted to use print ads, teenagers, and other means to disseminate misleading and incorrect information about this war.

Now though, the consumers and musicians are fighting back. One victim is suing the RIAA for violating the Computer Fraud and Abuse Act. The RIAA outfit called MediaSentry is the vendor that collects the data that the RIAA then uses to decide who to sue. The victim is claiming that this company, with known permission of the RIAA, basically hacked her computer to get the music files she has.

The RIAA also suffered a set back when forced to withdraw their case against a mother whose daughter was downloading the music. Since the computer belonged to the girl, the mother was not liable. Of course, now the music industry is considering suing the 13 year old girl.

Finally, even musicians are fighting back. Apparently more then annoyed with copy protection attempts on new CDs that prevents using for ripping them to iTunes and then only mp3 devices, many musicians are showing their fans how to get around the protection. Its makes you wonder why even bother buying a CD anymore.

I know war seems to be an exaggeration but thats what it is. The RIAA is attacking anyone and everything. They even have a propaganda campaign. They try to use overwhelming force of lawyers rather then soldiers to reach their goal. The RIAA goal is simple, return control of the music industry ie the pricing back to the music cartel. Before, they could price music at whatever they felt like, produce crap and tell us to like it. Now that music has been forced on the digital form they are being forced down a new business path they not only don't understand but they cannot control as they did in the past.

The consumers now are in control. With this new domain the entire CD of crap is worthless. If people want the prize jewel, thats all they get and dump the rest. No more spending 15 bucks for one song, now its just 1 buck. No more quick cheap hits like Britany Spears and her clan. In the new music digital age, their shelf life is brief unless they truly have the talent to back it up. The result is a return to quality. The problem with quality though is its expensive and time consuming. It can also cut into profit margins in an age where the quick buck is king.

The websites are also in control. Right now iTunes controls most of the downloading market but others are entering. There are three ingredients that will decide who stays on top 1) the music library 2) price 3) ease of use of the site and the music bought. Right now Apple not only rules in these critical categories with a massive music library, the price point is fabulous, but the site is easy to navigate and the music once bought is yours. The rules are few and not a limiting factor.

This, however, goes against the control the RIAA wants. They too are developing sites to compete with iTunes such as Rhapsody. However, they don't even bother to compete. Not only is the library usually limited, the price more expensive, but the rules and ease of use is non-existant. There are often many rules governing use of the music the consumer purchased and downloaded. However, rather then try to compete properly and competitivily, the RIAA is trying to cheat the field. They are attempting to force Apple to increase the cost of each song, claiming they don't get any money from it, even though its documented they get 70% of the sales of each song. They are also trying to force competing P2P sites to shut down. If they could legally find a way I am sure its just a matter of time before the try to shut down iTunes.

As of right now, RIAA has no control over pricing nor distribution. A situation that has never occured in its history. Its clearly frightened and lashing out like a spoiled brat at anyone they can. The problem is that in the digital age, lashing out rather then embracing simple creates problems. As the fall of Napster showed, taking out one P2P doesn't eliminate the problem, its just creates more problems. For every WinMX they take down, 5 will replace them...only they will be replaced overseas outside of the RIAA's and Supreme Court's jurisdiction. As iTunes has shown, give people a competitive reasonable method to get what they want, they will follow. Everytime industry has fought technology they have lost, but the moment they embrace it and harness it, new avenues of profit has opened up. Its time that the RIAA woke up and smelled the silicon. They may have won some battles but they lost the war.

No comments:

Post a Comment