http://www.mp3load.ws/creative-mp3-case-holder/
Why Would a Blanket Radio-type License for Digital Music Create a Positive Net Ecosystem?
Let’s look at the current situation of music on the internet. We have the ‘legal streaming and downloading music sites’ and you have the ‘illegal’ sharing and piracy sites. Let’s call the ‘legal’ ones group A and the illegal ones group B.
Here is what is happening to group A: Group A starts a website or application. Group A raises loads of cash and licenses music from the dominating music industry labels and publishers. Money changes hands. Group A pays for use of music in a specific territory. (For demonstration purposes, the territory will be called ‘T’)
So, A + $ = T
Now, here is group B. This group is the illegal ‘sharing’ sites. Group B sets up a website which permits the public to share music. Here is what their equation looks like.
B = T x 195
Tx 195 = world domination
Ok, when you look at these two equations, you see that the $ sign has been omitted from the second equation. In the first equation, we are only talking about one territory. But, in the second equation, the ‘T’ actually represents the whold world without any boundaries. So, we need to multiply the $ signs and the ‘T’s in the first equation in order for the two equations to be put on a common scale. So, let’s have “W” mean ‘world’.
Here we go: legal site A:
In order to be able to launch their service to the world, they will need to repeat the original equation for every territory”
(A+$) x 195 countries = W
but B’s model doesn’t change
B=W
Now, most of us would look at this and think, B is better. B doesn’t need to spend any money and they have all the world’s music. However, B has a problem because it has been deemed ‘illegal’ which in turn makes it difficult for B to monetise their site. Advertisers don’t want to spend money in the ‘illegal’ zone. So, A has an advantage. However, A has to sink millions of $ just to achieve what B can do virtually for free. But, B has legal battles to fight in court and cannot turn a profitable model and A has to pay the music monopolies in order to license the music. So, both A & B are doomed unless something happens.
Luckily, there is another group involved here. That group is ‘C’. C = Consumer.
C has a lot of power. Because C is the end user. C is the ultimate demography that both A & B want to reach and ultimately, it is C who determines D. And we all know who ‘D’ is:
D=demand.
So, here’s the solution. A, B, and C group together and vote openly to resolve the problem. C has already established a demand for free music in the digital age. C has voted against buying CD’s and is rapidly voting for accessing music freely through both types of services A & B by the millions. However, C needs to help both A & B survive so that C can continue to enjoy this D that has been created. Got it?
Now, that was all fun for demonstration purposes. Here is the basic principle. We, the consumers of music, can create a demand against the monopoly. We have the power to petition for a Radio-type license for music on the internet. In reality, there is no difference between a legal and free streaming site or an illegal downloading and sharing site. You can digitally copy both without any detioration in the quality. So, here’s the future in a nutshell. If enough of us petition for a compulsory online digital music license for the world whereby all music could be available, the music ecosystem could potentially thrive. Artists and bands would earn a proper wage. Music Consumers would access music. Legal versus illegal would disapear and ultimately the copyright holders would curtail and make profitable what they shamelessly consider ‘piracy’ in a digital age because they would ultimately tap into a royalty system in a segment of the online consumer market that they had no access to previously. And money spent on lawsuits that can only be paid by prison sentences doesn’t give them a better P&L balance at the end of the year(s).
Now, in case of argumentative individuals who find this analysis somewhat ‘naive’, hang on a minute. This isn’t the end of how much value could be created here because both A & B would be legal. They would also have the potential to offer premium services which the important music companies could license and/or take a profit share from. The basic music service (mp3′s as streams and downloads) would be part of the basic ‘radio-type’ license. However, A & B (both being legal) would finally be in true competition with each other. Therefore, creating a proper demand for ‘premium’ services and upsell to ‘C’ (consumer). And this will give ‘C’ much more freedom of choice based upon their taste, habits, and economic situation. The ecosystem will create more market power. This in turn will allow music and creativity to thrive once again. So, the power is in the hands of the Consumer right now. The consumer, (all of us) must cast a vote. Vote for change and make it happen now: (Your vote is free and you can even make comment. It takes about 20 seconds. You don’t need to register, just sign the petition). http://www.ipetitions.com/petition/compulsary_worldwide_digital_mus/
About the Author
Exploring New Music through the web.
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