They just don’t get it…

June 18, 2002 Comments Off on They just don’t get it…

They just don’t get it… here is a great example of an industry that can’t wrap it’s head around evolving business practices. The RIAA (the most hated of names to file-swappers) has settled with AudioGalaxy for an undisclosed amount. AudioGalaxy has also agreed to seek permission from copyright holders before allowing songs to be traded. Now, leaving aside the legality of the whole issue, it seems to me that the recording companies have really missed the boat on this one. I know that lots has been written on this subject already, so I’ll keep it brief. The thing that’s wrong with the record companies isn’t their desire to protect their intellectual property, it’s their inability to see beyond their present business model to something more innovative. Instead of suing the pants off any company who dares intrude on their distribution chain, they should be saying, “Wow, that’s a neat way of doing things… why didn’t we think of that, and how soon can we get that model up and running.” Let’s face it, the record companies pay-for-play services are less than stellar. You have a subscription of $10/month, and what do you get for it – the ability to download maybe 50 songs and play them only on one machine. Obviously, that’s not what the customers want. Memo to the RIAA: if you spent as much energy on innovation as on litigation, there’d be no one to sue, because their customers would be flocking to use your service. Get it right!

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