Free Money

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Some of you may have been able to take advantage of the music settlement lawsuit. It was determined that the major record labels were in collusion to price fix retail music CDs. So, on the strength of many fileswapping services, Napster, Gnutella, Morpheus, Kazaa, etc, and many annoyed consumers, a class action lawsuit was filed. If you're intersted, read the article.

Got my check for $13.86, I look at it as a moral victory. I will continue to grab and share Ogg and MP3 files. The RIAA should be more interested in reducing the cost of shrink wrapped music, lest they will continue to hear the bellyaching of major music labels.

A typical 80min CDR cost roughly 0.25, but if you buy shrink wrapped music CDs, you'll pay anywhere from 13-19 bucks. Talk about high margins. This is explains why Internet fileswapping services are so popular. The reality is that the music artist makes little if any money from the CDs that are sold in stores. Most artist make cash by doing tours. The record labels stand to profit the most by selling music CDs at a premium.

Hell, I only purchase underground mixed-tapes and CDs. In general, I have found that I may only like two or three cuts on an album anyway. Most record stores that I frequent, will allow you to listen to selections before you purchase.

Why did it take the music industry so long to figure out how make loot from the Internet music model ?

Mad props to founders of Napster for giving back the power to the consumers and developing a Killer App.

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    This page contains a single entry by AG published on March 1, 2004 4:12 AM.

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