Incentivizing Your Customers to Steal Your Product

Bob Lefsetz explains to the major labels why they are either incompetant business people, or just plain ol’ dumb:

It’s this kind of stuff that got the labels in trouble in the FIRST PLACE!

Why do these companies feel that their actions have no consequences?
It’s not only record labels, it’s the radio industry too.  They cut the
playlists, added a ton of commercials and what happened??  PEOPLE
STOPPED LISTENING!  Yup, they keep making new people every day, the
population is increasing, but radio listenership is down.

In the nineties the labels released shittier and shittier acts with
only one good track on their CDs that kept going up in price.  The
companies believed they had all the power, that they could DICTATE to
the marketplace.

Wrong.  The customer ALWAYS has the power.  To see P2P services purely
in the context of free is to miss the point.  From the very BEGINNING
of Napster, when fewer people were trading files than today, however
much publicity the practice was receiving, college students were
TESTIFYING!  Albums sucked and were overpriced to boot!  And that they
wanted to acquire music in a new way.

The battle is over.  Apple’s already sold 22 million iPods.  Don’t
expect a fall-off for Christmas.  The iPod Nano will be hotter than any
album released by the Big Four.  iPod users want the file, the CD is
irrelevant, unless it’s used as a ripping device.  WHICH IT CAN NO
LONGER BE!

Instead of looking towards the future, getting AHEAD of the marketplace
and corralling the public in a profit-making venture, the labels want
to keep everybody in the past.  They want to focus on CD sales.  Oh,
Edgar Bronfman, Jr. and the other powers say they BELIEVE in the
digital sphere.  But the iTunes Music Store and Rhapsody and Yahoo
Music are INHERENTLY crippled services that the public is not
interested in.  Only a tiny FRACTION of the public utilizes these
services.  Because they don’t deliver what people want, which is much
more USABLE music at a LOW PRICE!  But, these services do one thing the
labels LOVE!  They make the CD look like a good alternative.  This is
like selling
Hyundais with three wheels and saying horse and buggies look good in comparison! 

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