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Originally Posted by Paul Markham
Will the economic downturn help us?
I always look to the effects and alternatives, sometimes right and sometimes wrong. 
If the economic downturn gets bad advertising on sites that pirate, like Tubes and Torrents, might become less profitable. There might also be less companies spending money on ads and less people signing up to a dating or cam site. So will running a Tube or Torrent site become less profitable?
Asking the question and not making a statement. |
torrent sites have the cheapest ads rates around, if you happen to sell hard goods /non digital content there conversion rates are equal to or greater then traditional advertising.
I ordered an hp media vault because of an ad on a torrent site i go to. for a lot of people download tons of tv shows means they are running out of hard drive space, so selling something that solves a problem caused by the torrents (to much content) is a no brainer. I am surprised that more companies don't do it. However as the economy turns worse i suspect any lost sales will be replace with such products, as companies like hp are forced to loosen up their affiliate restrictions to get more business.
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Originally Posted by Paul Markham
CD sales are down and falling still. The effect to the economy in the West is pert of why we will all need to tighten our belts in the next few years.
Rolling Stone article. and Herald Tribune article. Both show the real picture. But think beyond CD sales, think music stores closing, van drivers laid off, CD duplication plants closing. All because people refuse to pay for something. |
digital distributed music is growing at an greater rate then album sales are dropping. What is lost is the revenue from forcing people to buy an album because they happen to like 3 songs. Now if you want 3 songs you buy three songs. Itunes still rapes the artist up the ass giving them only 9 cents out of the 99 cost of downloads. Band like radio head have proven that you can make more money letting consumers decide how much they can pay for a digitial download then trying to sell them an album under the ass raping the record companies give their artist. Radio head made more money by sending mailing to the guys who downloaded their album for free then they would have made from the royalties if they sold each one of those "customers" a full album under a standard record deal.
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Think even beyond that, music is only one thing people are stealing and it's not just kids today, it's adults as well and todays kids are tomorrows adults. Think Games, Programs, films, porn and DVDs all produced where? Not in China, India or any other third world country. They are all produced in the West. So someone saves money on a CD and buys a new coffee maker instead. A coffee maker made in China. It can be any product you can think of made in the Third World.
Someone in the West loses their job because people choose to steal a Western produced product and spend the money on an imported product. And the West is going into financial melt down because it does not produce enough and imports too much. So the bill is going to be paid.
As I said I think beyond the immediate situation.
Will World leaders allow this to continue? Would you if you saw $100 worth of goods being stolen that could be sold? Yes Gideon I pulled that figure out of the air to illustrate the point, it could be more.
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the point is what is the US going to do start a trade war, tear up free trade agreements. The US sells billions of dollars of products to china, those companies which produce those products in china have head offices in the states, employing people here as well.
You have to get all these countries, who don't have a music industry to protect to agree to cut their own throats for your benefit.
Draconian measures like taking down the site completely are not valid because a majority actions (TV shows+ tv aired video/movies) is a recognized fair use even under US laws.
Add the fact that some of the "piracy" is fully licienced (canadian piracy tax = all music downloads by canadians is legal) and a significant majority of the so called "stealing" is not illegal at all.
The solution is simple, like the vcr, the cable rebroadcast of tv signals, the printing press embrace the technology and make money from it.
Product placement
process monitization
branding bugs.
that the way to solve the problem, not praying for big brother government to step in and solve the problems for you.