Philosophical Musings

January 11, 2008

The Right to Life is Reserved to Humans, Not Business Models

Filed under: Copyrights, capitalism, music — Elad @ 7:11 am

The Right to Life is reserved to Human Beings. Not to businesses. In a market economy, when a business fails to serve its purpose - i.e. generate revenue by selling a product or service to customers, it dies. This includes entire industries too.  If you’re lucky enough to still be producing something that people want, and it’s just your business model that doesn’t work anymore, good for you - you don’t have to die. Just find a new busines model.
Technology changes, business models stop working, you move on.

Oh, wait, there’s another option. You can lobby for new taxation designed to keep your obsolete business alive.

December 24, 2007

Morals, Law and Belief

Filed under: Copyrights, Democracy, Freedom, religion — Elad @ 11:36 am

Two seemingly unrelated posts I read this morning combined in a beautiful way.

Seth Godin is insightful as always, saying:
* Most people want to believe.
* And we’re most comfortable believing what everyone else believes.

Add to that the fact that “everyone else” isn’t really everyone else, it’s just your peer group. That’s why we mostly hold the same religious views as the community we grew up in.

The related post is from TorrentFreak: Piracy, Morals and The Need for Change
Ernesto discusses a NY Times article that tells of the generational divide in the moral perception of copyrights - today’s college students just don’t see anything wrong with copying digital files.
This is only surprising if like most people you (wrongly) assume that morals should be based on the law, and not the other way around. Morals aren’t a constant, they’re just the sum of what we believe to be right and wrong. They exist because we want to believe that there are such things as right or wrong, but their content is usually whatever our peers happen to believe in in that time and place.

So, asks Ernesto, should sharing copyrighted material be leglized?
Wrong question. The right question is “should there be such a thing as copyright?”. Well, the future generation has voted, and their answer is “definitely not”!

November 13, 2007

(Real) Competition-Blindness

Filed under: Copyrights, business — Elad @ 2:46 pm

So a major TV network (NBC) has finally launched a service that lets you download shows to your PC. Not surprisingly, they still don’t get it right:

“First off, it’s Internet Explorer only, then once you download the player, if you don’t have the latest .NET framework, you’ll be downloading that also. Next: Windows Media needed a security update on top of it all. On a Mac? Sorry, can’t help. Outside of the US? You’re out of luck too.

Don’t they realize that they have to be better than competition?  They probably do. It’s just that they choose to ignore the real competition. Let’s parse those (non)issues:

1. It’s internet explorer only. Mininova etc. work on firefox as well.

2. You need to download the latest .NET framework. I guess I could live with that one :)

3. Windows media needs a security update. Screw you.  Playing DivX torrents doesn’t require any “security” updates that securely send information about me somewhere else.

4. On a Mac? No problem. Lots of bittorrent clients work on the Mac.

5. Outside of the US? Even better, in most countries MPAA hasn’t got lawmakers in their pocket (yet).

September 14, 2007

Copyrights vs. Creativity

Filed under: Copyrights, music — Elad @ 9:03 am

TechCrunch (well, actully Reuters) reports that 80’s pop-star Prince (formerly known as The Artists Formerly Known as Prince) plans to sue a number of top websites, such as YouTube, for copyrights infringement.

Note this quote from Reuters:

“But it is believed to be rare for an individual artist of Prince’s stature to take on popular Web sites, while some up-and-coming performers actually encourage online file sharing to create a fan base and buzz around a record.”

It’s no wonder that up-and-coming performers encourage file sharing - they need to promote themselves in order to create an audience for their material.
Even no-longer up-and-coming artists promote their new material through file sharing.
However, if your fountain of creativity now has plumbing problems, and your new material isn’t any good (and you have to resort to tricks to promote it), then your best strategy is certainly to protect your income from the old material - which makes Prince’s move very logical (as it does Metallica’s prominent position in the ranks of file-sharing critics).
What we must ask ourselves though, is whether any of this makes sense for society as a whole. Preventing file sharing on copyrights grounds nowadays serves to secure more wealth to the already wealthy yesterday’s pop-star, while making it harder for new stars to emerge. It certainly does not “promote the progress of science and useful arts“.

August 10, 2007

Strike Back for Freedom

Filed under: Copyrights, Democracy, Freedom, business, capitalism — Elad @ 2:01 pm

Finally, someone is trying to use the media industry’s own weapons against them.

TechCrunch reports that Veoh, an online video website, is suing Universal Music, after being continually threatened by them.  While their chances in court are probably not very high, its heartening to see that some entrepreneurs aren’t easily intimidated.

Incidentally, I ran into this quote of a judge today:

“There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary public interest. This strange doctrine is not supported by statute nor common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back, for their private benefit.”

Unfortunately, the speaker isn’t a real judge, he’s a fictional one, in Robert Heinlein’s classic short story Life-line, written in 1939! (I’ve been reading some classic scifi lately). Too bad that this paragraph, written 68 years ago by a true libertarian to criticize corrupt business, is still relevant today. Even worse, no real life court today would say the same.

May 24, 2007

Growing Revenues in the Music Industry

Filed under: Copyrights, business, music — Elad @ 6:17 am

This article from eMarketer shows that artists’ revenues from recording performance rights (i.e. payments by radio and TV stations) as well as synchronization licensing (i.e. the licensing of music for commercials, television shows, films and videogames) are growing fast. Together they totaled nearly $4 billion in 2006.

So while the recording industry, i.e. the people who sell CDs, is in trouble, the people who actually create music have many potential sources of revenue even if the end user isn’t paying for CDs.

May 23, 2007

Couldn’t say it better myself…

Filed under: Copyrights, Freedom, music — Elad @ 3:35 pm

NewsFlash! - Amazon Now Has DMR Free Mp3s

April 16, 2007

Major Lables are not to blame for Music Business Demise

Filed under: Copyrights, business, economy, music — Elad @ 7:26 pm

A NY Times article by Tony Sachs and Sal Nunziato tells the story of the independent CD shop that they owned in Manhattan for 12 years, until it closed in 2005.
They are full of criticism for the major record labels, whom they blame for making all the wrong moves in the face of the file sharing revolution, mistakes that they claim have led to their shop going out of business.
It is an important read, that helps you realize how the revolution does not hurt just big faceless corporations or multimillionaire-but-still-gready musicians. It also affects small business owners, who lose the business that they had spent 12 years nurturing.
But as much as I share their loathing for the big record labels, Mssrs Sachs and Nunziato are plain wrong. The labels are not responsible for the demise of their shop, and rather than make mistakes, I believe that they soon enough realized where all this is going, and began fighting for their lives with all the tools at their discretion (basicly money, which is used to influence lawmakers and public opinion).
Sachs and Nunziato’s shop had closed because its many of its customers no longer had a need for it. It’s great that their staff, unlike Best Buy’s actually “knew who Van Morrison was”, but people now go to the internet for music advice. It’s fun to claim that Tower Records had “the entire history of recorded music under one roof”, but that claim is plain wrong, and in any case, we can turn to file sharing to really find any piece of music ever recorded, and searching for it is easier too.
They continue by claiming that “the customers who had grudgingly come to trust our opinions made the move to online shopping or lost interest in buying music altogether. Some of the most loyal fans had been soured into denying themselves the music they loved.” Come on guys, people don’t deny themselves of the music they love. Instead they have a much better source now, and they still spend endless hours browsing and building themselves a great collection, but it doesn’t cost them money.
They end by saying that “the occupation we planned on spending our working lives at is rapidly becoming obsolete. And that loss hits us hard — not just as music retailers, but as music fans.” Again, while it’s heart wrenching that someone’s life creation is becoming obsolete, you can’t stop technology. Too bad that you share your lot with the buggy drivers, but that’s life. You can’t blame the major record labels for this. Change is an inevitable part of our world, better learn how to handle it. Finally, we should also keep in mind that recorded music, the basis for the CD shop business (the entire music business actually), was enabled by a technological advance. Some times these advances are good for you, some times they’re not.
Finally, as self-described “music fans”, these guys should be happy with the change. What it really means is more music in the hands of more people. Business has nothing to do with it.

April 14, 2007

How the book market should be: Author to Reader, Direct

Filed under: Copyrights, business, ebooks, economy — Elad @ 9:40 am

Chris Anderson points us to the long tail characteristics of the romance novel market.

What caught my eye was the following quote:

“One told me that at $4.99 she felt her novel was “priced wrong”. I nodded sympathetically at that shameful discounting. Wrong. She felt she was priced too high.”

Most of those $4.99 go to the retailer, the publisher and various other middlemen, so she probably makes $1 or less per novel sold, and still she things it is only right to go down further. Wouldn’t it be great when she sells those novels in digital format, from her website direct to her readers, for $.49?

Also worth noting is that in the current system the author has no control over the pricing of the fruit of her labor. It is sold for what some MBA thinks is “right”. A better system would leave that decision to the creator. Better still, if it is reached through a dialog between her and her readers.

April 6, 2007

Comic Books Quandary and Possible Solution

Filed under: Copyrights, ebooks, economy — Elad @ 5:48 pm

Steven Grant writes in “Speaking of bit-torrenting comics” about how downloads of scanned comic books through bit torrent hurts the business and jeopardizes the existence of many comic series that sell just enough to justify their continued publication. What Grant suggests is that artists beg file-sharers to go out to a store and buy a copy of titles they enjoyed, in order to ensure that the economics keep working.

I think he’s terribly wrong. When the economics turn against you, begging free-riders to shell out cash when they don’t really have to just doesn’t work. The first reason is that online consumption is free fast and easy, and you get instant gratification (or nearly instant, in the case of bit torrent). Going out to buy stuff adds the non-instant gratification (by actually requiring you to go out, or simply by keeping you waiting for delivery in the case of orders from amazon) insult to the cost injury. The second reason is that there’s so much content out there these days, that most consumers don’t really feel threatened by the idea that some title might go away - unless they’re true enthusiasts for the specific title (and as a rule these are the minority of customers) they can always find something else to replace it.

Instead, why not try to adapt to the changing marketplace and adopt a new business plan?

It’s clear that the market is still there - if people download and share the stuff then they’re obviously reading it. Moreover, the new medium opens up any comics title to a potentially far greater market reach. Finally, it seems that these people don’t mind reading the stuff off their computer screens (printing it in good quality would cost far more than simply buying).

See where I’m getting at? Why don’t comics artists put up a website and publish their own work there?

Here’s how the economics for you, the artist, might work:

You don’t need Marvel to publish your work, so you can cut the entire printing and distribution costs and the retailer’s margins. That has to translate to a serious reduction in price.

Put advertising on your site to generate revenue. If that doesn’t work, i.e. you don’t have enough visitors to generate significant revenues, try charging a very low price, i.e. an iTunes-like $.99 per title. As Apple had proved, it works. You could provide free access to the first few pages, to whet potential customers’ appetite, then charge for full access.

For your best fans who simply have to have a copy on paper, you could use a service like lulu.com to print and ship the stuff.  If you look at the little they skim off the list price you have to realize that Marvel is screwing you.

You could even use bit torrent to promote yourself. Pick some of your works, add a first page that links back to your website and tells people there’s much more there, and start sharing it.

Maybe there’s even a business here for some aggregator  - a website that manages the whole thing and lets comics publishers publish their work thus. If there’s interest, I could build one :)

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