21 September 2005

And as for the other labels...

In the previous post on Sony, I said that we might "perhaps" have more sympathy if the statement had come from another (major) label. But I didn't actually mean it.

The major labels must be the only companies in the world to think that higher prices = greater overall profitability. And you would think after the experience of Amazon (which has done more to raise sales of CD’s than anything else), they would have seen the light. If they don’t think Amazon’s model is bad, then surely Apple is equally to be applauded? And, in the case of Apple, we’re talking about a different distribution model. Amazon didn’t re-invent the relationship between user and artist – it was still basically a CD thing. Online models offer many more possibilities. And as usual, the labels would rather stop the party than get on and make it a roaring success.

There are many innovative ways to build on the online model and develop new streams of revenue and boost the take. The labels are not thinking different(ly) and the artists will suffer (more so I would guess the artists who are no longer actively managed by a label).

As Steve says, if they get away with this, ultimately everyone is a loser. And, if the labels think it won't get worse, it will. I will not buy any CD that has copy protection. Stifle the music lover and see what happens then.

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