Independent Online Edition > Business News.
"The International Federation of the Phonographic Industry, or IFPI, said it would take action against internet companies that carry vast amounts of illegally shared files over their networks. It stressed that it would prefer not to pursue such a strategy and is keen to work in partnership with internet providers.
John Kennedy, the chairman of the IFPI, said he had been frustrated by internet companies that have not acted against customers involved in illegal activity. He warned that litigation against ISPs would be instigated "in weeks rather than months". Barney Wragg, the head of EMI's digital music division, said the industry had been left "with no other option" but to pursue ISPs in the courts.
The IFPI wants ISPs to disconnect users who refuse to stop exchanging music files illegally. Mr Kennedy said such activity is in breach of a customer's contract with the ISP and disconnecting offenders the IFPI had identified would significantly reduce illegal file sharing...."
Let me see if I get this straight: the record labels have STILL not worked out a realistic model that can really monetize the tremendous and surging interest in music. They STILL prefer control and denial over revenues. They STILL bang their heads against the wall try and sell only crippleware and DRM'ed files viax iTunes, Napster, Rhapsody (which, btw, next to no-one is buying: witness all of the windows DRM-based services are slowly shutting down, see AOL Music, Mycokemusic, Virgin Digital...) - and pretty soon, with various ad-supported services that will also fail miserably as long as they sell crippled files - and they STILL don't get that they are killing the market by not offering something that people would actually want to buy. They STILL market music like it's 1982, they STILL want the radio guys to be crippled or go away (see the debate on the new Perform Bill in the US, i.e. on using DRM in radio (!!!) and the broadcast flag discussion, and the mind-bending lawsuits against satellite radio service XM, in the U.S.).
So now they want the ISPs to patrol the web and see if someone downloads something they have not (and never will) sanctioned. In other words, enforce their failed and antiquated business models via a web police squad that they won't even pay for. Now, if that's not Orwellian, I don't know what is! The absurdity is beyond description.
Here is my message to John Kennedy (I don't think he reads blogs but ... maybe someone can print and fax it to him :). It's time you understodd that the world has moved on since Total Control of music was doable, and a bunch of guys determined what the artists, the distributors, the retailers, the radio stations, and ultimately the consumers, could do and not do. It's now the USER aka the consumer that has the power, and they aren't buying the crippled stuff you want to sell them. Period. Not because they are evil and not willing to pay, or looking to steal, but because the VALUE isn't there. Because you are trying to sell them less value, less options and less usage rights, for more money! The ISPs need to get a blanket license so that anyone can use the music, under a flat fee and revenue sharing agreement (such as Playlouder in the UK is suggesting), not be penalized for their very existence. And the record labels would make a LOT more money, too!
It is utterly disturbing that the industry and people like John Kennedy are STILL pushing this disconnected, ill-informed and bizarre agenda, while at the same time it is perfectly clear that digital music is NOT going well, that sales are slowing down, that the consumers aren't convinced that the current offerings, and that $2 Billion in sales in 2006 could have been $20 Billion if the industry gave the users what they really want: open and fully compatible formats, flexible pricing and bundles, easy and instant access, and fully interactive and sharing-enabled online and mobile platforms.
What has to happen before you guys get it? EMI sold to private investors? Myspace signing major artists for direct deals? Google offering direct distribution to millions of bands? 50% of the staff fired at major labels around the world? I have a hunch of where you will be going but... where have you BEEN the past 12 months??? Watch this video of my predictions for 2007 ;). Or listen to my podcasts?
