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5
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- To the Editor:
- As Friday afternoon’s last minute injunction proved, the celebration
over the end of Napster was premature.
But whether Napster continues on or shuts down forever is not the
issue. The real issue is what should
the music industry have learned from Napster?
- Given how Napster has commanded the attention of the music industry of
late, it is hard to believe that it didn’t exist six months ago. It’s even harder to believe that in
that brief time, it has attracted 20 million users. The lesson? Consumers want online access to their
favorite music.
- More than that, virtually every survey out there says that Napster users
are actually buying more music now than before. The lesson? These consumers are still perfectly
willing to spend money on music they want.
- And, while the spotlight has focused upon Napster itself, newer, more
insidious versions – such as Gnutella, Scour and Vorbis -- have already
sprouted like mushrooms. Consider
that it took more than 35 years for cassette tapes to overtake record
albums, 10 years for CDs to overtake tapes, and just three years for
DVDs to make significant inroads in the video market. The lesson? The pace and scope of technological
change is increasing exponentially; keep up or be rendered obsolete
overnight. Even Napster will
become a dinosaur, perhaps even before its case goes to trial.
- So now what? The major labels are
at a crossroads and the path they choose will determine the fate of a
$42 billion industry. They can
sit back and wait for the courts to rule, which would treat the
symptoms. Or they can take the
lessons learned from Napster and turn them to the advantage of artists,
consumers and the music industry as a whole, thereby curing the disease.
- Yes, it’s true that music already available through Napster and others
cannot be retrieved or salvaged.
The proverbial genie is out of the bottle. However, digital distribution need not
be the enemy of the major labels or artists. The key is the music that has yet to
be released. Record labels must
change their distribution patterns and behavior or Napster and services
like it will continue to thrive regardless of what the courts say.
- In all the clamor about Napster, what has been lost is the fact there are
ways to securely encrypt music, protecting the copyright holder. There are also ways to accurately
track downloads so that royalties can be disbursed appropriately. Various business models ranging from
subscription to pay-for-play are being explored to insure that 1)
consumers get the best music for the best value and 2) that copyright
holders are protected and compensated.
- In short, secure platforms already exist for labels and artists to
distribute their music exclusively on the Internet. In the short-term, an exclusive
digital window would precede the CD release. Down the road, perhaps in 10 years or
so, digital downloads will eclipse the CD as the primary form of
distribution.
- As a 20-year veteran of the music industry and the founder of an online
music company aggressively building music’s new model, I know just how
difficult it is to strike a balance among the artists, without whose
creativity none of this would matter; the labels, who have a business to
run and protect; and the fans, who ultimately determine the fate of both
groups.
- We’ve talked with numerous top artists and all of them recognize that
the Internet is the world’s largest stage and the fastest, most direct
route to their fans. They want
nothing more than to deliver their music to this global audience; they
simply want this music to be properly valued and protected. We couldn’t agree more.
- We also can’t overlook the Napster lessons: consumer demand for online
music is strong, consumers will pay for music they want, and technology
can either destroy this business or take it to new heights.
- We can establish a system whereby digital distribution is fair for all
rather than a free-for-all. But
we must start now. We're already
late.
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Notes
