Wednesday, December 3, 2008

Thoughts on Music Industry (Part 1)

Have you ever thought what a brilliant idea it is to be a patent holding company? You claim to be sitting on a pile of innovations by acquiring a bunch of dormant patents until you encounter an "a ha" moment by suing major innvators/companies, hoping for an awesome ROI? Just to revisit some old stories, lawsuits against Apple, Nokia, Palm, and RIM ring a bell?

Do you see stunning similarities with the recorded music industry, as I do? That's right. Both of them sit on a pile of innovations (and greatest creative thinkers) and decide to monetize by exploiting the power of obscure legal languages.

Music is still by far the most popular entertainment avenue. People just love listening to music and are amazed by the creativity coming out of the artists' minds. Yet, the music industry needs to deal with piracy, and the creatives are entitled to getting (monetary) credits.

Hear me out: When a monetization strategy is by suing loyal consumer of your product, something's gone terribly wrong.

RIAA sues MIT student and students dropping out of school to pay legal fees. Though somewhat outdated story, it still gives me depression. The music industry needs to get along with consumers and focus on solving the very difficult monetization problem. It needs to accept the whole paradigm shifts towards the new frontier.

Next part is about the whole paradigm shifts in the music industry.
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