more on The so-called Apple music monopoly

[David Farber <dave () farber net>]

Begin forwarded message:

From: David Pakman <david () dimensionalassociates com>
Date: May 23, 2006 9:31:40 AM EDT
To: Tom Goltz <tgoltz () QuietSoftware com>
Cc: dave () farber net
Subject: RE: [IP] more on The so-called Apple music monopoly

Tom,

It is a colloquialism in the digital music world to refer to those music
files delivered online as "digital" and music sold on CD as "physical".
While your point is factually accurate, the thread to which my note
referred clearly is a discussion about files delivered online.

Your presupposition that consumers who want to buy their music online
(rather than buy a physical good and have to convert to a digital file)
are simply lazy is not a business-person's view of consumer behavior. It
also ignores the facts: during the five years the major music industry
did not offer music for sale digitally online (but only on CD), it
allowed a festering spec of pirate activity to turn into the largest
means of accessing digital music. Consumers clearly demand access to
music delivered online and should not be remanded to buy a physical good
when the digital one can be delivered far more conveniently and
efficiently. Where there is demand, market forces require supply to
meet.

I do not support the activities of the four major labels. I believe
their DRM requirement both takes away legitimate fair use and creates
monopolistic ecosystems which benefit only the owner of the DRM format.
The "market" we are discussing here is the market for music delivered
digitally online. There is no dispute today that the only way to
legitimately buy a digital file online from the four majors and play it
on your iPod is to buy from Apple. Apple holds this monopoly today.

David


........................................................................
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david pakman / president & ceo
managing director, dimensional associates, Inc.
david () dimensionalassociates com

emusic / Number 1 site for independent music
http://www.emusic.com/browse/new.html

t (+1) 212.201.9210 / f (+1) 212.201.9202 / m (+1) 917.597.1855
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-----Original Message-----
From: Tom Goltz [mailto:tgoltz () QuietSoftware com]
Sent: Tuesday, May 23, 2006 9:22 AM
To: David Pakman
Cc: dave () farber net
Subject: Re: [IP] more on The so-called Apple music monopoly

At 08:27 AM 5/23/2006, David Pakman wrote:
> In response to Ole Jacobsen's comments...
>
> The fact that the major record labels, responsible for more than  
> 70% of
> the US music market, only sell their catalogs digitally in
DRM-protected
> formats rendering them compatible only with certain players is NOT a
> myth.

Last time I checked, a Red Book-compatible Compact Disc was a fully
digital format, and is not DRM-protected.  I'm not aware of a "major
record label" that doesn't offer it's music in the Compact Disc format.

> Ole's comments seem to accept the notion that it is the consumer who
> must bear the effort to convert music from a CD into a digital format
> compatible with their iPod, unless they accept that the only source of
> major label digital music is from Apple.

I don't see this as "forcing" the consumer to make the conversion,
but rather selling the consumer a high-quality uncompressed copy of
the music.  IF the consumer wants a smaller file, he is free to copy
the music, apply the level of audio compression that suits his tastes
and needs and then to use the resulting file for his personal use and
enjoyment.  It hardly gets better than that.

If you as a consumer are not willing to spend five minutes of your
time converting a CD, then you have the option of purchasing
pre-compressed music from the iTunes store (if you own an
iPod).  This is certainly convenient, and like most conveniences
costs more.  Offering this higher-cost option does NOT make Apple a
monopolist.

What I fear is the efforts by the music industry to make
personal/fair-use copies illegal, which may yet succeed.  However, I
suspect that like the 55mph speed limit, such a law will be so widely
flaunted that it will eventually be repealed.



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