Friday, January 05, 2007

good biz week article on the sad state of digimusic

"Right now the fact is that pirated music and pirated movies are actually worth more than the movies and music you buy," says Rob Enderle, principal analyst with the Enderle Group. "I can't think of another product that is actually worth more stolen than if you purchased it."

what a fantastic quote! he poignantly reflects the madness of the digital music market today where legally purchases tunes and "fair usage" leaves you with a decidedly inferior product. that's certainly not the case with black-market watches, fashion, etc. the article talks about how apple is using DRM in a monopolistic fashion to extend their early lead in players to digital music. and since they have already acquiesced on protecting the crazy RIAA margins (around 70 cents wholesale cost per song), they're also sheltering them and have the RIIA as their cheerleaders. blecchh.

my take: it doesn't matter over time as the us mkt becomes a smaller and smaller portion of worldwide sales and other countries make no effort to enact/enforce the same copywright laws we have in the us. apple's ipod will also become a much smaller % of overall players over time, look at what happened to sony walkman over time and the recent mkt share gains by sandisk's mp3 players.

link to the rest of the article is below:

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