Matt Burrows, one of my co-fellows here at CIS, gave a good talk today about how we ended up where we are today in the world of digital media. These are my notes from his talk:
Some initial caveats:
-these are his personal comments, not those of apple
-he's not an engineer -
-can't comment on litigation at apple etc.
-his background is from the music business, and transactions. not a litigator. his background is with music and entertainment deal-making.
The key elements/events that have lead to our current situation:
(Amoeba records - perhaps an exception?) To some extent the real world issue of shelf space that existed for selling CDs of music, is analogous to what appears on the four corners of your computer screen on an on-line store.
So, from Apple's point of view, the market leader for digital downloads of music, but it's still a relatively small share of the music market.
How should digital media companies respond to growing the market, and increasing their market share.
Acknowledge that this is a Free vs. Paid world. Music can come from other sources - limewire, current CD collections, etc. - and those are lost sales for the digital music company and lost revenue to the rights holder. One question to ask is: how can Apple respond to this? If the goal is to incentivise artists to create more music, we need to convince listeners to move from free to paid world.
Examples of solutions:
Key rights issues going forward as either impediments or areas for growth for the digital media business: