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Why the Record Industry Doesn't Stand a Chance
Newhouse News Service ^ | Aug. 19, 2003 | JAMES LILEKS

Posted on 08/20/2003 12:56:10 PM PDT by new cruelty

Forget Napster. The newest place to steal -- sorry, "share" -- copyrighted materials is Earthstation 5. They claim 22 million downloads of their software, offer digital copies of movies still in the theaters, and boast that no one will be able to shut them down. They may have a point.

They're located in the Jenin refugee camp on the West Bank.

You can imagine the discussions in the Recording Industry Association of America's legal office: "You serve them with papers." "No, YOU serve them." (Pause) "OK, we'll send an intern."

Earthstation illustrates the problem the record industry faces: It's a big planet, it's wired together, and it's filled to the gunwales with pirates.

You've heard of Napster? So 2001. Now there's Kazaa. Now there's Grokster, whose corporate location in the West Indies just screams, "Come and get me, copper!" There's Blubster, another music-swapping program provided by a company in Spain. The day there are two servers in Greenland, the second will be devoted to letting 20-somethings in a Vilnius dorm room download Metallica songs.

The recording industry hasn't just lost control of its product; the product itself has lost its reason for being. The CD is as dead as the album, and for the same reason: Most bands have one or two good songs, a couple of so-so numbers and a half-dozen tracks of dreck you'll never hear again. We all know what CDs cost -- you can get a hundred blanks for a sawbuck. So why does the disc cost almost 20 bucks? Well, there's the cover art, the distribution, the advance to the artist, the cost of catering a five-week recording session for a band made up of ultra-vegans who eat only imported Irish loam, and of course the all-important $19.99 PROFIT.

You can't begrudge them a profit, of course. It would be nice if it trickled down to the average recording artist as well, but let's not be silly dreamers here. What really plagues the industry is an antiquated business model that requires putting out 10 tons of overpriced junk in the hopes that 3 ounces will make 11 tons of money.

But no one wants albums anymore. They want songs.

Unfortunately, they want them for free, and that's where the RIAA steps in -- with hobnailed boots. They've threatened file-sharers with huge fines for each download, meaning that kids with 30 gigs of "shared" music could face fines equal to the gross domestic product of sub-Saharan Africa.

The downloaders insist they have the moral high ground; they'll complain about the cost of the product, the unjust contracts musicians sign, the shoddy treatment the industry gave Blind Willie Simon in 1937, etc. They'll sniff that the musicians should give away the product and make their money touring, which is akin to saying restaurants should give away food and make their money selling souvenir forks. They'll craft shaky analogies to libraries -- as if the public library lets you take a book, make a perfect copy, and give it away to 4,982 people.

It's all a justification for the Internet's eternal problem: No one wants to pay for anything unless that something is nekkid women. And even then they'll complain about the price.

So what's the solution? Congressional hearings, of course. That'll fix everything! The creepily named Senate Government Affairs' Permanent Subcommittee on Investigations will soon hold hearings on the RIAA's dilemma.

But get this: The subcommittee's chairman thinks the RIAA is being "excessive." And he's a Republican -- Sen. Norm Coleman, a Minnesota solon who admits to having used Napster himself.

Coleman has a point; copyright laws permit fines up to $150K per tune. There's no sense in suing some kid eleventy million bucks for file-swapping songs. On the other hand, no one is going to stop stealing music unless he's scared of being arrested, sent to jail and forced to share a cell with a smelly old hippie who sings Mungo Jerry songs all night.

But there will never be enough arrests or convictions to stop the hard-core downloaders; there will never be a technological fix that someone won't find a way around. Copyright violations will cease when enough people decide they're morally wrong, when the old explanation -- "But Ma, even senators do it!" -- doesn't feel right. When the Internet is governed by reason, decency and conscience.

Never, in other words. See you in Jenin.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Editorial; Extended News; Government; News/Current Events
KEYWORDS: riaa
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1 posted on 08/20/2003 12:56:10 PM PDT by new cruelty
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To: new cruelty
bump
2 posted on 08/20/2003 12:58:52 PM PDT by facedown (Armed in the Heartland)
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To: new cruelty
Anyone who's been to Hong Kong knows the meaning of copywrite!
3 posted on 08/20/2003 1:00:05 PM PDT by chas1776
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Comment #4 Removed by Moderator

To: new cruelty
The Ten Commandments say, "Thou shalt not steal."

And if thou stealest the products of a man's labor, thou wilt bankrupt him so that he no longer has reason to labor in that field.

Recording theft will kill music, not just music companies.
5 posted on 08/20/2003 1:02:33 PM PDT by xzins (In the Beginning was the Word)
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To: new cruelty
Where do news groups fit into this issue?

Seems to me newsgroups, and I'm thinking of the binary groups here obviously, have been around well before Napster. The sheer volume posted daily to these groups is enormous.

I've not seen yet any mention of news groups in any article... is it small potatoes compared to the P2P apps. Clearly, getting downloads takes a bit more skill than P2P.

6 posted on 08/20/2003 1:03:18 PM PDT by C210N
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To: new cruelty
I dispute the very claim that the recording industry is being 'hurt' by file swapping to start with.

New releases are down 30% from where they were 10 years ago. If you release fewer albums each year, the return from album sales will also go down.

New competition exists for that same $20 of 'disposable income' that did not exist 10 years ago. For $20 I can buy a DVD, a PC Game, Gameboy cartridge, or a CD.

We are in a recession (coming out of it right now, I hope)

And unlike every product on earth, the RIAA doesn't feel that music get's less valuable over time. Why is the Beatles 'White Album' still selling for $29?? Don't tell that it's due to 'advertising costs'.
7 posted on 08/20/2003 1:04:05 PM PDT by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: grayout
Isn't there a new service where you can download a song for 99 cents? ... that seems fair and I believe it's more than a radio station pays when a song is played (anybody know out there?) ...

Pay-for-download music is the future I think and it's fair for everybody ...
8 posted on 08/20/2003 1:04:29 PM PDT by Bobby777
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To: xzins
Recording theft will kill music, not just music companies.

So no more Emenem, snoop-dog and 50 cent? I can live with that.

9 posted on 08/20/2003 1:06:09 PM PDT by Orangedog (Soccer-Moms are the biggest threat to your freedoms and the republic !)
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To: xzins
An there's a Spanish phrase that says:

"Ladrón que roba ladrón, tiene cien años de perdón"

Translation: A thief that steals from another thief has 100 years of pardon.

When you steal from thiefs like the RIAA, it's even morally compulsory.
10 posted on 08/20/2003 1:06:12 PM PDT by El Conservador ("No blood for oil!"... Then don't drive, you moron!!!)
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To: new cruelty
There's very little that's worth downloading today.
11 posted on 08/20/2003 1:07:00 PM PDT by curmudgeonII
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To: El Conservador; Orangedog
Again, I'm not talking about the recording industry that you don't like, and forget about the artists that you don't like....just focus on the ones you appreciate.

How can they continue if they don't get paid?
12 posted on 08/20/2003 1:08:52 PM PDT by xzins (In the Beginning was the Word)
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To: xzins
One word...concerts.
13 posted on 08/20/2003 1:10:36 PM PDT by Orangedog (Soccer-Moms are the biggest threat to your freedoms and the republic !)
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To: xzins
One word...concerts.
14 posted on 08/20/2003 1:12:41 PM PDT by Orangedog (Soccer-Moms are the biggest threat to your freedoms and the republic !)
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To: Orangedog
A song becomes known and a group gets known. It develops a following and a bankroll. Some concert promoter is willing to risk money to have them play in XUY town.

Take out step one and two and ask yourself how likely it is that step 3 will take place.
15 posted on 08/20/2003 1:13:58 PM PDT by xzins (In the Beginning was the Word)
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To: xzins
The day the music died.
16 posted on 08/20/2003 1:14:30 PM PDT by gathersnomoss
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To: Orangedog
If it's one word....why'd you say it twice? :>)
17 posted on 08/20/2003 1:14:54 PM PDT by xzins (In the Beginning was the Word)
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To: new cruelty
But no one wants albums anymore. They want songs.

Bingo. iTunes gets that concept. Plus it frees up the artist to concentrate on those 2-3 songs that people actually listen to.

They'll sniff that the musicians should give away the product and make their money touring, which is akin to saying restaurants should give away food and make their money selling souvenir forks.

LOL!
18 posted on 08/20/2003 1:14:55 PM PDT by lelio
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To: Hodar
Similarly, I still don't understand why the "arr-teests"
benefit everytime the "medium" changes. I purchased
"The White Album" (and many other titles) in vinyl, 8-track,
cassette, and CD. All of those "production costs" are not
repeated everytime the medium changes.
19 posted on 08/20/2003 1:15:39 PM PDT by Hanging Chad
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To: gathersnomoss
exactly.

a few get the point.
20 posted on 08/20/2003 1:15:44 PM PDT by xzins (In the Beginning was the Word)
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