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Serious essay on the music biz
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<blockquote data-quote="Dannyalcatraz" data-source="post: 5892523" data-attributes="member: 19675"><p>The legal ramifications are part and Patel of the problem. A right you cannot protect in the law of your society is valueless in that society.</p><p></p><p>Now, it is true that artists not making money is not the sole fault of piracy. Some music simply sucks.</p><p></p><p>However, it's pretty clear that there is a very real and measurable effect. More than a decad ago, multiple studies showed that, while the music industry's sales were increasing, the sales at stores around colleges were dropping precipitously, despite the high population density of the industry's target market there. That alone tells us only a little- those students could be buying elsewhere. However, the studies also pointed out that those same schools were experiencing a huge increase in downloading traffic on their systems that declined when things like Napster were banned. This gives us the obvious inference regarding music sales declining where there is a huge spike in the use of pirate sites which reverses when those sites are blocked.</p><p></p><p>One such survey was discussed here <a href="http://articles.latimes.com/2000/may/25/business/fi-33790" target="_blank">Survey Finds Link Between Downloading, Drop in Sales - Los Angeles Times</a> </p><p></p><p></p><p>A more recent look can be tracked down here: <a href="http://www.youtube.com/user/iepgmu#p/u/13/eRMoB2QilDE" target="_blank">http://www.youtube.com/user/iepgmu#p/u/13/eRMoB2QilDE</a></p><p></p><p></p><p></p><p>The law measures it as economics informed the lawmakers to do. I got my degree in Econ some decades ago, and I didn't go into it full time. Some of my fellow majors, though, did do work on models of the costs of protecting vs pirating of IP. It looks a lot like what happens with tangible property- the right to control use is- essentially- the most valuable legal right you have regarding property.</p><p></p><p>If you own land, but have no right of exclusion, you cannot decide who has permission to walk across it, have a BBQ on it, take a dump on it, etc., and when, what do you really own? You still have the land, yes, but anyone and everyone else can use it too. Your ownership is without meaning; without value.</p><p></p><p>What is going on with piracy is the "destruction of the commons" in a sense. I'd be lying if I told you that I didn't know people who recorded stuff from the radio or CDs (or other media) and pass it along. With the technology available to the Average Joe of 1980, that wasn't so big a deal. The copies took a long time to make, and were low-grade- something that often drove those pirates to buy the legit, higher-quality recordings. (I know some who bought 7-10 copies of the same concert, for instance, before built the legit version- the various songs wer of various quality.) </p><p></p><p>However, the same technologies that made digital distribution of music and other IP possible- a definite boon to us all- also makes it possible to make fast, essentially perfect copies of the stolen IP. Any incentive to buy legit beyond one's own moral compass is gone.</p><p></p><p>And, as the article pointed out, it has resulted in an increasing shift of the burdens and risks of recording music to the artists. There is an evaporation of economies of scale that was present in the old system that let companies distribute risk and let a wide variety of artists get time in professional-grade studios and exposure to new audiences via concert tours and other tools of their marketing departments.</p><p></p><p></p><p>Highly unlikely!<img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big grin :D" loading="lazy" data-shortname=":D" /></p><p></p><p>Although I found it amusing that he talked about the "sweet spot" of having your album failing just badly enough to not recoup costs while you still got paid for certain things, like mechanical royalties. (And then pointing out that piracy cuts into those income streams as well...)</p></blockquote><p></p>
[QUOTE="Dannyalcatraz, post: 5892523, member: 19675"] The legal ramifications are part and Patel of the problem. A right you cannot protect in the law of your society is valueless in that society. Now, it is true that artists not making money is not the sole fault of piracy. Some music simply sucks. However, it's pretty clear that there is a very real and measurable effect. More than a decad ago, multiple studies showed that, while the music industry's sales were increasing, the sales at stores around colleges were dropping precipitously, despite the high population density of the industry's target market there. That alone tells us only a little- those students could be buying elsewhere. However, the studies also pointed out that those same schools were experiencing a huge increase in downloading traffic on their systems that declined when things like Napster were banned. This gives us the obvious inference regarding music sales declining where there is a huge spike in the use of pirate sites which reverses when those sites are blocked. One such survey was discussed here [url=http://articles.latimes.com/2000/may/25/business/fi-33790]Survey Finds Link Between Downloading, Drop in Sales - Los Angeles Times[/url] A more recent look can be tracked down here: [url]http://www.youtube.com/user/iepgmu#p/u/13/eRMoB2QilDE[/url] The law measures it as economics informed the lawmakers to do. I got my degree in Econ some decades ago, and I didn't go into it full time. Some of my fellow majors, though, did do work on models of the costs of protecting vs pirating of IP. It looks a lot like what happens with tangible property- the right to control use is- essentially- the most valuable legal right you have regarding property. If you own land, but have no right of exclusion, you cannot decide who has permission to walk across it, have a BBQ on it, take a dump on it, etc., and when, what do you really own? You still have the land, yes, but anyone and everyone else can use it too. Your ownership is without meaning; without value. What is going on with piracy is the "destruction of the commons" in a sense. I'd be lying if I told you that I didn't know people who recorded stuff from the radio or CDs (or other media) and pass it along. With the technology available to the Average Joe of 1980, that wasn't so big a deal. The copies took a long time to make, and were low-grade- something that often drove those pirates to buy the legit, higher-quality recordings. (I know some who bought 7-10 copies of the same concert, for instance, before built the legit version- the various songs wer of various quality.) However, the same technologies that made digital distribution of music and other IP possible- a definite boon to us all- also makes it possible to make fast, essentially perfect copies of the stolen IP. Any incentive to buy legit beyond one's own moral compass is gone. And, as the article pointed out, it has resulted in an increasing shift of the burdens and risks of recording music to the artists. There is an evaporation of economies of scale that was present in the old system that let companies distribute risk and let a wide variety of artists get time in professional-grade studios and exposure to new audiences via concert tours and other tools of their marketing departments. Highly unlikely!:D Although I found it amusing that he talked about the "sweet spot" of having your album failing just badly enough to not recoup costs while you still got paid for certain things, like mechanical royalties. (And then pointing out that piracy cuts into those income streams as well...) [/QUOTE]
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