Tuesday, March 27, 2007

Loser: Record Industry with others to follow?

Unless they are able to create an entirely different business model (a sustainable one), the record industry is in trouble. They will be unable to end the trend of file sharing. Currently they have methods of making it harder:

1) DRM
2) Creating fake files
3) Prosecution

But none of these methods are sustainable. People will find ways to get around technical solutions, and serious prosecution is not realistic. If they do not embrace this irreversible trend and determine a way to fit within the new value chain, they will be eliminated.
This trend is moving into other forms of content distribution as well (movies, video games, TV, etc). Members of the traditional value chains for these industries must learn form the mistakes of the music industry or else risk being marginalized as well.

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