Re: Re: better late than never...
Originally posted by Smasher
The difference here is that while you're paying for the sunglasses or surfboard wax themselves, you're not with the CD. With the CD, you're paying for the music. The CD is merely the medium the music is held on (although admittedly a bit of the price comes from the CD itself).
Excellent point. That's the whole thing. A CD costs the publisher somewhere in the neighborhood of twenty cents to press in quantity. Maybe less by now. Think about it -- if they were any more expensive than that AOL would have gone out of business long ago. The big justification for the high cost of CDs is that what you're paying for is a
license to listen to the music. And yet, if somehow the medium becomes damaged, your only option is to pay again for music you've already purchased a license for once.
In fact one of the reasons the cost of CDs is so high is that CDs don't wear out as fast as any previous distribution medium. The extra price, for a disc that costs them less to produce than a cassette tape, is that they're losing a lot of revenue compared to the good old days when people had to replace their favorite albums every year or two.
In one sense, Timothy's right on the money. Taking the music without paying for it is illegal, and ninety-nine percent of the people who talk about how the labels are corrupt, abuse the artists, etc, could not care less that the labels do those things except insofar as it gives them something to say when people point out to them that stealing music is wrong. In other words, most of you would never think to protest the injustice of the music industry if you weren't getting free music out of the deal.
At the same time, once you get away from the individual ethics of the situation (which I think I can do fairly since my Napster usage didn't tend towards the illegal), the situation is not as black-and-white as that. Even though the people who steal the music are not justified in doing so, the hubris and greed of the labels has played no small part in creating the situation they now find themselves in. The labels have managed to successfully circumvent all of the usual controls in a free-market industry. By building up enormous complexity, they have actually succeeded in creating legal price fixing in their industry. When theft of a product is as ubiquitous as Napster usage was, then there is
something wrong with the economics of the situation. In this case, part of what's wrong is that it is now possible to distribute music far, far cheaper than the established process. In fact, the music literally distributes itself. For that matter, it's hard to
stop it. The very existence of this option makes the traditional distribution mechanisms far less valuable to the consumer. In effect, the labels now force consumers to pay an outrageous premium for an outdated and inefficient publishing and distribution mechanism which consumers demonstrably neither want or need.
What's happened here is that the complexity which allowed the labels to fix and maintain enormous profits at the same time made the industry too complex to be able to adapt to changes in the market environment. So when something truly revolutionary comes along (and personal worldwide distribution of content certainly qualifies), their only choice is to do their very best to crush it and maintain the status quo. Essentially, they're engaging in anticompetitive business practices, not against a specific competitor, but against the proverbial idea whose time has come. I'm pretty sure it's ultimately a losing battle for the labels, but it's going to be a hell of a mess for a while as they try to maintain their position.