Who are the warning labels on CDs geared to? Consider this for a moment, if you will: Isn’t warning the people who actually buy CDs
There is the marketing aspect of it: While the main reason I purchase
CDs is the superior recording quality — CDs simply sound much better than
MP3s. But the other reason to actually make a purchase (versus download) is the physical disc’s artwork, lyrics, etc.
That space is on the jewel case
is a marketer’s delight, handled repeatedly by the consumer while
enjoying the product. Recall the lament when Albums went the way of the dodo about the much smaller CD disc and packaging. The industry would have been better off putting the 5 inch disc in an album sized sleeve, along with a little travel envelope. Why give up that massive adverising space? Its a way for an artist to develop his
or her "brand," and establish a relationship with the fan.
This subject came up again recently when I came across something wrtitten by Francis Heaney. (He’s the author of Holy Tango of Literature). Heaney is rather annoyed. "I predict a riot," Heaney recently wrote, using the title of a Kaiser Chiefs song.
The source of his ire? These very same Piracy warnings on CDs:
"It really annoyed me when CD companies starting putting FBI anti-piracy messages on the back of CDs. I was all like, shut up! I bought the CD. I’m contributing my goddamn money to your dark satanic mills! Get off my back!
The first such warning I remember seeing was on the back of Elvis Costello’s "The Delivery Man." Elvis clearly wasn’t pleased about it being there, adding this disclaimer above it: "This artist does not endorse the following warning. The FBI doesn’t have his home phone number and he hopes that they don’t have yours."
Well, I just bought the new Kaiser Chiefs CD — which, I feel I should point out, I downloaded in its entirety before purchasing. You know, I was dubious about the album because I felt like, oh god, another cheeky young British band coming in on the heels of the Futureheads and their ilk, it can’t be that good, can it? But I liked it quite a bit, so I threw it in the shopping cart the next time I went on one of my periodic CD binges (also buying all the Go-Betweens reissues that I did not already have, the new live Los Lobos album, and the new Beck).
When it arrived, I was mildly annoyed to see the back cover defaced with FBI chiding
Yes! They had stuck an anti-piracy warning smack in the middle of the CD itself! On top of a pretty spiffy design! This…is unacceptable.
This all seems like the dumbest fucking idea in the world. I just want to shake every single moron who works for the RIAA by the lapels and say to them, "Do you understand? The thing that makes me want to buy CDs is that I am a geek who enjoys having physical objects around. If you go around stamping ugly text directly on the artwork in a CD’s packaging, you are decreasing my incentive to want to buy it, because you are making it objectively less attractive as an object."
Put another way, it actually reveals how little the RIAA (and by extension, the
recording industry) understand about marketing and product sales. That
they are willing to sacrifice an extremely limited piece of real estate
to make a hollow point is unacceptable foolish and wasteful, from a business
Why prosletyze to people who CD buyers? Preaching to the choir is a totally ineffective strategy to win converts.
While Heaney doesn’t offer a solution to this issue, he does note: "Thank god I’ve got a big stockpile of cheeky British post-punk music to listen to when I’ve worked myself up into such a state."
"Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again."
– John Maynard Keynes, Tract on Monetary Reform
- Economists and fundamental analysts often miss cycle turns.
- There’s always another recession — and expansion — coming (eventually).
- Learn to separate hand-wringing permabears from credible commentators.
If you have been listening to the financial press recently, you might be shocked (shocked!) to learn that inflation has been increasing and the economy is slowing.
You don’t say?
Of course, readers aren’t just now discovering that this economy has been suffering from inflationary pressures for more than two years, as a chart of the CRB shows.
It’s the same with GDP. Follow the numbers: The third-quarter 2003 number was 7.8% (originally reported as almost 9%), the next quarter’s was 4.2% (originally 6%+) and 2004′s quarterly data came in at 4.5%, 3.3%, 4.0% and 3.8%.
This week, we learned the first quarter of 2005′s number of 3.1% was way below consensus expectations. While some will tell you that 3%+ GDP growth is pretty decent, it’s the trend of waning momentum that is the issue. An early mentor of mine used to admonish traders to not look at the photo, but to watch the full movie instead.
So much for the idea of kinda-sorta-eventually-efficient markets hypothesis.
Slowing GDP and rising inflation have been discussed on this site for over a year now. The investing issue with macroeconomic concerns is not the actual data, but how — and when — that data affects psychology. It’s a question of timing. The commentators who are first now discovering weak GDP and inflationary pressures are not much help to you once the ocean is flat again.