Tuesday, January 1, 2008

What Other Industry Sues Its Own Customers?

The RIAA is cracking down once again on purchasers of recorded music who convert them to MP3 files on their computers or share them with their friends. In a Washington Post article, "Jammie Thomas was ordered to pay $220,000 to the big record companies. That's $9,250 for each of 24 songs she was accused of sharing online....

"As technologies evolve, old media companies tend not to be the source of the innovation that allows them to survive. Even so, new technologies don't usually kill off old media: That's the good news for the recording industry, as for the TV, movie, newspaper and magazine businesses. But for those old media to survive, they must adapt, finding new business models and new, compelling content to offer.

"The RIAA's legal crusade against its customers is a classic example of an old media company clinging to a business model that has collapsed. Four years of a failed strategy has only 'created a whole market of people who specifically look to buy independent goods so as not to deal with the big record companies,' Beckerman says. 'Every problem they're trying to solve is worse now than when they started.'"

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