Why the Recording Industry Loves Tech

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: Rick Dobbs <liquidblues () yahoo com>
Date: Fri, 16 May 2003 01:54:43 -0700 (PDT)
To: dave () farber net
Subject: Why the Recording Industry Loves Tech

Dave:

Hillary Rosen wrote a fairly compelling article for Business 2.0.  I don't
agree with her that the online music shops are where they need to be, but
her
mission seems to be clearly stated.  Let's just hope its shared by her
cohorts...

---

As head of the Recording Industry Association of America (RIAA), I've been
the
public face for an industry that's endured significant -- some would say
tumultuous -- changes during the last few years.

http://www.business2.com/articles/mag/0,1640,48752,00.html

 
the Recording Industry Loves Tech
Forget what you've heard -- the RIAA believes technology holds the key to
music's future. All you have to do is give that future a chance.
By Hilary Rosen, May 2003 Issue

As head of the Recording Industry Association of America (RIAA), I've been
the public face for an industry that's endured significant -- some would say
tumultuous -- changes during the last few years. It seems widely assumed
that we at the RIAA revel in our role in stamping out music pirates. True,
it's a necessary part of the job, and also the right thing to do -- if you
believe, as I do, that misusing someone's copyrighted property is wrong. But
here's something that may surprise you: I'm every bit as passionate about
music as you are. 


The reason we do what we do is not a love of litigation but rather a love of
music. What other form of entertainment can move you the way music does? And
what other form can move with you during every part of your day? Don't
overlook these simple facts -- they're the reason that, contrary to the
predictions of some doom-and-gloom naysayers, the record industry is poised
to rebound. 


And what will the vehicle for this rebound be? Technology. Yes, technology.


In fact, record companies and tech firms have long had a symbiotic
relationship. Every new music format of the last half-century has come as
the result of collaboration between our industries. And in January we
announced a set of joint policy principles with two leading tech-industry
groups, the Business Software Alliance and the Computer Systems Policy
Project, which collectively represent virtually all the big players: Apple
(AAPL), Cisco (CSCO), Dell (DELL), IBM (IBM), Intel (INTC), and Microsoft
(MSFT). 


One of the key planks of these joint principles calls for "private and
governmental enforcement against infringers." This is critical to fostering
innovation -- after all, recording artists and software developers alike do
what they do at least in part for financial gain. And it bears repeating
that this is the view not just of the RIAA but of the technology companies
as well. They support appropriate enforcement against copyright pirates
every bit as much as we do.


Here's something else that may surprise you though: Another important plank
in this agreement is a firm commitment to opposing government-imposed
technological mandates. The RIAA believes in innovation. And we believe that
consumers in the marketplace, not the government, should decide which
technological innovations will thrive.


Indeed, the recording industry has spent hundreds of millions of dollars
developing new business models to serve music consumers in exciting new
ways. While everyone knows that the marketplace for digital distribution of
music has been too slow to develop, it is here now. Today there are several
legitimate online services, with content from every major record company,
that allow consumers to stream music and listen to it through their
computers or download it and burn it onto a CD. Hundreds of thousands of
tracks, both new hits and catalog favorites, are now available with the
click of a mouse. These sites ought to have a fair chance to compete in the
marketplace. 


I used to say that the record business was like a soft-drink company that
sold its products in nothing but 64-ounce bottles, because our product was
principally the full-length album. Well, thanks to electronic distribution
through multiple types of networks with varied business models, we now have
the equivalent of cans and six-packs and fountain drinks. Consumers can buy
digital music à la carte or sign up for subscription services offering
unlimited downloads, and they can take their tunes with them wherever they
go. 


Since portability is a compelling feature for music fans, these new ways of
distributing music can bring added value to all sorts of new consumer
electronics. As I prepare to leave my post this year, I'm proud that part of
my legacy will be the role I played in championing new technologies. But the
financial incentive required to keep music fresh and popular must be a
shared commitment between the music industry and the technology community.
Continued investment in and development of the legitimate online music
marketplace, along with appropriate antipiracy enforcement, is the ultimate
pro-technology strategy for both creators and consumers.

Hilary Rosen is the chairman and CEO of the Recording Industry Association
of America, based in Washington, D.C.
 http://www.business20.com/articles/mag/0,1640,48752,00.html.
Try a Free Issue of Business 2.0: Call (800) 317-9704

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