A Need for Paradigm Shift

Music piracy has been with us for a long long time. I recall growing up in the 50’s and 60’s playing those colored polyvinyl records my friends and family members bought from Taiwan. I believe that at that time they cost about a fourth of what the real thing would cost. And the quality was comparable to the original. The music format then moved from polyvinyls to cassette tapes in the 70’s and 80’s. This time the country of source for pirated cassette tapes was Indonesia. Every time I traveled to Jakarta for the company I worked for, I would normally buy ten to fifteen of those tapes. They cost next to nothing when compared with the original work. Whether Taiwanese polyvinyls or Indonesian cassette tapes, the buyer still had to get a physical copy. In these instances, also, the damage to the talents and record producers were not really substantial as the reach of the pirates was limited in terms of geography.

The internet however has changed the situation completely. Anybody with a computer and access to internet can copy music from any number of websites or file sharing systems. Even enforcement of the rights of talents and record producers over their works has changed completely. We have heard of owners of file sharing system being sued and even individual downloaders being sued. The latest case decided is that of a woman in the United States who was fined about $80,000 per music downloaded. Will these judgments have a chilling effect over those who at one time or another downloaded music illegally over the internet?

I doubt it. The reality is that illegal downloads will continue particularly in developing countries where the cost of “original” is beyond the reach of most. What is also evident at this time is the fact that the business model that music companies is using has not worked at all. Business the way it is done would have to give way to a new paradigm. The cost of distributing music via the internet is practically free and hence the record companies must be able to make the appropriate reductions in their pricing. And they also have to consider the fact that at the right price, there are millions, maybe even billions, of music lovers who might just decide to go “legit”.

I am certain that over time, adjustments will be made in the music industry to meet the challenges that they currently face. It may take time but equilibrium will be achieved one way or another.