My project focuses on the emergence of new types of "screens" - computer screens, iPod, PDA, cell phone screens, and other new media monitors - that might change how we approach, digest, and consume media every day. The sources I have chosen for this project reflect my desire to compare these new physical screens with older screens such as TV monitors and those in movie theaters. I also chose sources that provided background information on digital and New Media, as well as on theories of spectatorship and screen consumption, since I was not well-versed on the topic before beginning this project.

            This article written by Senior Counsel, Music, for RealNetworks, Inc., describes one new service which could provide a free and legal alternative to illegal downloading. The service it is about is called SpiralFrog which it says falls in the middle of the spectrum between free and illegal and for sale and legal. The free downloads are legal in this cause because the use of the digital music will be "limited" in that the downloads have a set time and then they become no longer playable, and they are not compatible with iPods. The service will be "free" because users do not have to pay money, they only have to watch an advertisement periodically while they have a download. With services like SpiralFrog, the idea is that users can get music for "free" as they have grown accustomed to, and the labels can still get paid.

 

            This article is relevant to my research on why copyright owners fight technology such as peer-to-peer services that allows free downloads, but choose to waive their copyright in certain situations, such as MP3 blogs, because it is a description of a service that provides free music to users, while generating revenue to pay the copyright owners. The article is an optimistic view at the system as it comes from someone in the industry of ad based music providers. The service does pay the copyright holders, but in the restrictions it places on how users are able "own" music will probably make it unpopular to the copyright pessimists. The article in fact mentions one of the fears of DMCA and anti-device opponents because the downloaded songs will not be usable in iPods.

The thesis of this article is that for the major recording labels to stay atop the music industry, they will have to embrace both technological and creative risks.

They will need to find ways to reach more users via the internet. Until recently, recording companies have viewed the internet as the enemy rather than an opportunity. They have gone with the strategy of litigating the fans that use peer to peer networks instead of finding a sustainable business model that will put their content online. As a result, sales decreased by a fifth between 1999 and 2003.

More recently, however, the recording industry has made inroads to accepting that the internet and digital technology will shape the music industry’s future. Apple’s iTunes service proved to music executives that the legal download market is viable. With this realization, recording companies are trying to figure out how to change their business model to take advantage of the internet.

Another problem which is just as important as piracy is the recording companies’ inability to develop new artists into strong sustainable brand names. The emphasis on one hit wonders is also to blame for the decline in CD sales. In fact, an internal report at one of the major recording studios found that between 2/3 and ¾ of the decline in CD sales was unrelated to online piracy. By embracing the internet, which bypasses more conservative retailers, the recording companies could gain the confidence to support new, innovative music.

Additionally, when an online business model unfolds, higher quality artists will be more profitable. Currently people buy single tracks much more often than whole albums. However, it is in the recording studios interest for users to spend 12$ on a whole album from one artist than to buy 2 songs from 6 different artists.

 

Importance to Thesis:

This article is important to my thesis in that it helps highlight the strategic mistakes that recording companies are repeating in response to peer-to-peer networks.  Music companies are exaggerating the threat of P2P networks, just as movie studios exaggerated the threat of the VCR.  In fact, the majority of the recent decline in CD sales is due to factors other than online piracy.  In addition, recording companies ignored the new markets that they could reach through online distribution, just as movie studios neglected to see that the VCR would expand their viewer base.  This article thus helps draw two parallels between the VCR and P2P networks, and allows me to apply historical lessons to the current situation facing recording companies.  

 

fuzzy Domokun ipod case how-to on craftster

The podcast network is a resource for people engaged in podcasting, a technology briefly explained on the website that involves users of Apple's iPods downloading periodic shows for later viewing.  Included on the network are two New Zealand radio serials released under a Creative Commons license, Claybourne and Ashleys World (verification found at the blog http://blogs.oldradio.net/archives/2005/01/10/ashleys-worlds-a-radio-serial/).

Warner executive threatens to cut off Apple unless the company agrees to accept variable pricing on iTunes and share iPod revenues.

September 23, 2005  Warner Music CEO Ed Bronfman Jr. responds to Steve Jobs's objection to increased, variable pricing as well as pursuing additional money from satellite radio

August 29th, 2005 New York Times article discussing the RIAA's push for a variable price structure.  The article includes basic statistics about iPod and iTunes sales as well as an overview of the RIAA's proposal.