An economists look at file sharing

[Alex Moon]

A pretty interesting article.

http://www.salon.com/tech/feature/2002/06/13/liebowitz/

The problem is that the number of downloads appears to be larger than the total number of CDs purchased. Worldwide annual downloads, according to estimates from places like Webnoize, would indicate that the number of downloads -- if you assume there are 10 songs on a CD -- is something like five times the total number of CDs sold in the U.S. in a year, and one-and-a-half times the worldwide sales. That's so large that you have to say: Look, if downloads are substitutes [for CDs] in any significant way, we should see really big declines -- unless there's something else going on.

The reason I gave in the paper is that maybe people aren't shifting their music [from MP3s to CDs]. But I've also seen some recent numbers on households that have CD writers, and it's something approaching 30 percent. We should see an impact. There's a 5 percent decline in CD sales this year, but that's what you might expect in a recession. So we're still not seeing much. And what I'm beginning to suggest now is that perhaps people aren't going to replace the purchase of CDs with these MP3s.

[Enforcer Talen]

from personal expiernce, I received 2 files from sauren - when I had money, I then bought cds for both..

[kojikun]

i dont buy CDs except rarely. then again, i dont like most music. im picky, i like specific songs, often from many different artists. i will not spend money that i dont have to buy songs that i dont want just for the sake of getting one decent song. RIAA can shove it. Apple has the right idea, but it should be subscription based not per song based.

[Joe]

Fuck the RIAA. I refuse to pay $22 just to hear a Beatles album that is already almost 40 years old.

[SPOOFE]

Looks like just a wordier version of "they wouldn't have bought the CD anyway" argument. Not exactly valid... people are still getting stuff that they don't deserve.

On the other hand, the RIAA uses the "we're losing revenue to file-sharing" argument to justify THEIR heavy-handed actions... and both arguments are just as invalid. The RIAA should look at programs like Kazaa and such as competition, and adjust their behavior accordingly. I betcha that if they cut their prices by 25%, you'd see better CD sales.

[kojikun]

I betcha that if they cut their prices by 25%, you'd see better CD sales.

They wont do something that lowers the profits of the executives even if it only costs a few pennies to actually make a song and put it onto CD.

[Joe]

Looks like just a wordier version of "they wouldn't have bought the CD anyway" argument. Not exactly valid... people are still getting stuff that they don't deserve.

On the other hand, the RIAA uses the "we're losing revenue to file-sharing" argument to justify THEIR heavy-handed actions... and both arguments are just as invalid. The RIAA should look at programs like Kazaa and such as competition, and adjust their behavior accordingly. I betcha that if they cut their prices by 25%, you'd see better CD sales.

25 percent is not nearly enough given the absolutely ridiculous prices of CDs. 50 percent is more like it.

[Xenophobe3691]

And it's not like you'll be ripping the artists off, the RIAA treats em like shit anyways.

[Jawawithagun]

Fuck the RIAA. I refuse to pay $22 just to hear a Beatles album that is already almost 40 years old.

So? I'll just pay $3 and get the vinyl second hand

[Jadeite]

The last time I bought a CD for myself, and not as a gift to someone, was about 2 years ago.

[Xenophobe3691]

Fuck the RIAA. I refuse to pay $22 just to hear a Beatles album that is already almost 40 years old.

So? I'll just pay $3 and get the vinyl second hand

And where would I buy myself a record player?

[kojikun]

And where would I buy myself a record player?

Audio-Technica Automatic Stereo Turntable System
Lots of turntables
More stuff

Granted the things arent cheap, usually over $150 but the relative costs of buying CDs vs records makes it worth it.

[SPOOFE]

25 percent is not nearly enough given the absolutely ridiculous prices of CDs. 50 percent is more like it.

You underestimate the fickleness of consumers. ANY price cut, be it only 2% or 3%, would be seen as a "deal".

[Einhander Sn0m4n]

I think a direct-to-the-artist payment/tipping/donation thing should be set up.

We also need to figure out a way to get LOTS of Indie Broadcasters on the air as well. Internet Radio, anyone?

[Einhander Sn0m4n]

I think a direct-to-the-artist payment/tipping/donation thing should be set up.

We also need to figure out a way to get LOTS of Indie Broadcasters on the air as well. Internet Radio, anyone?

Hey I just realized something: The REAL reason the RIAA attacked Net Radio so savagely is because they know that it along with filesharing will be the Horsemen of their Apocalypse. No need to shout 'Death to RIAA!!!' anymore, they're already bleeding to death. With blood loss comes insanity and irrationality. The only thing we need to do now is to stop the bastards taking us or our friends with them on their way to a terrivle doom...

[kojikun]

The RIAA is attacking netcasting because they know its not illegal and is fully within the realm of fair use and yet it provides everyone with exactly what they want: the ability to listen to a song anywhere any time without having to deal with a bajillion cds.

[The Yosemite Bear]

AND in other new my dad just burned and MP3ed a bunch of Robert Johnson, and other Blues Monos from his 78rpms. Thus preserving them, so that he can listen to these clasic sounds at home and at work.