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Ken Hite Re: The RPG Industry
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<blockquote data-quote="Dannyalcatraz" data-source="post: 2889600" data-attributes="member: 19675"><p>Even converting just 1/3 of those pirated downloads into sales would have gotten the album to breakeven. Converting just 1/6 would have been bad, but not a bankruptcy-causing event.</p><p></p><p>Remember, I'm not talking about just one label or one band, I'm talking about multiples. At some point, the accumulation of "anecdotal" evidence of piracy causing bankruptcies becomes real evidence- and I'm at that point. In my <em>personal</em> experience, just under 10 labels and a few dozen bands. In the experience of my colleagues, many, many more.</p><p></p><p>Furthermore, in the laws of most countries with strong copyright protection, the level of proof required isn't "prove how many people would have bought the pirated material" but "prove how many people aquired the material by piracy."</p><p></p><p> </p><p></p><p>You seem to be making a distinction that makes no difference...predation of profits IS (in this case) people stealing the goods, not "non-existent chickens."</p><p></p><p>Compensation to a producer of goods derived from the loss of sales & profits due to theft is a given in most moral/ethical systems, recognized in economics and codified into law. Since those consuming pirated goods are treating them as economic positive goods by expending time, incurring storage & opportunity costs etc., they owe the creator of those goods <em>at least</em> a nominal rental fee if not the full purchase price.</p><p></p><p></p><p></p><p>This from someone who negotiates entertaiment contracts (me): Janice Ian signed some lousy contracts and didn't sell enough albums for the companies to recoup their investment in studio time, paying artists for cover art, manufacture, distribution, advertising and "shrinkage" (aka defective product, breakage & theft). Folk has historically been a genre plagued with poor sales. Artists who can't crack 100,000 sales on a release really don't belong on a major label- they will never recoup the company's investment. On a small label (whether indie or wholly-owned subsidiary), the smaller scale of operations will actually lead to albums becoming profitable with smaller sales.</p><p></p><p>Besides, its not <em>piracy</em> that is the boon to the small music artist- piracy AT BEST gets the artist word of mouth advertising...at the same time as the pirate site gets the same word of mouth advertising.</p><p></p><p>The REAL boon to the small music artist its the possibility of electronic distribution of their music which reduces costs of distribution significantly and enables the artist to reap a larger share of the sale price of their product as royalties...and each pirated copy still cuts into that.</p></blockquote><p></p>
[QUOTE="Dannyalcatraz, post: 2889600, member: 19675"] Even converting just 1/3 of those pirated downloads into sales would have gotten the album to breakeven. Converting just 1/6 would have been bad, but not a bankruptcy-causing event. Remember, I'm not talking about just one label or one band, I'm talking about multiples. At some point, the accumulation of "anecdotal" evidence of piracy causing bankruptcies becomes real evidence- and I'm at that point. In my [I]personal[/I] experience, just under 10 labels and a few dozen bands. In the experience of my colleagues, many, many more. Furthermore, in the laws of most countries with strong copyright protection, the level of proof required isn't "prove how many people would have bought the pirated material" but "prove how many people aquired the material by piracy." You seem to be making a distinction that makes no difference...predation of profits IS (in this case) people stealing the goods, not "non-existent chickens." Compensation to a producer of goods derived from the loss of sales & profits due to theft is a given in most moral/ethical systems, recognized in economics and codified into law. Since those consuming pirated goods are treating them as economic positive goods by expending time, incurring storage & opportunity costs etc., they owe the creator of those goods [I]at least[/I] a nominal rental fee if not the full purchase price. This from someone who negotiates entertaiment contracts (me): Janice Ian signed some lousy contracts and didn't sell enough albums for the companies to recoup their investment in studio time, paying artists for cover art, manufacture, distribution, advertising and "shrinkage" (aka defective product, breakage & theft). Folk has historically been a genre plagued with poor sales. Artists who can't crack 100,000 sales on a release really don't belong on a major label- they will never recoup the company's investment. On a small label (whether indie or wholly-owned subsidiary), the smaller scale of operations will actually lead to albums becoming profitable with smaller sales. Besides, its not [I]piracy[/I] that is the boon to the small music artist- piracy AT BEST gets the artist word of mouth advertising...at the same time as the pirate site gets the same word of mouth advertising. The REAL boon to the small music artist its the possibility of electronic distribution of their music which reduces costs of distribution significantly and enables the artist to reap a larger share of the sale price of their product as royalties...and each pirated copy still cuts into that. [/QUOTE]
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