Recent events underscore the need for a reassessment of the processes and practice in the recorded music industry. Consumers are not happy with product prices and seek ability to exercise their purchase as they see fit; artists wish to leverage new means of creation and distribution; producers seek to preserve their right to capure appropriate returns for their labor; marketers and distributors do not want technologies freely exercised to defeat their attainment of return for their value added efforts. Many reforms are possible - if we are willing to address fair demands and fair complaint. Is the industry at war with its customers? Are artists leveraging the new possibilities? Is the album form dying in the market, giving way to an unbundled form? Battle lines are being drawn with rights management banners unfurled. We will explore these issues and consider suggestions of future market practice that may serve all key stakeholders.

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Here Be Pirates!
Facing the Music
Issues in the Transformation of the Music Industry

In this session we will explore the views of artists and business and legal experts related to several issues facing the recorded music industry. It is a very broad environment and we can only touch on a small number of items. We will drill down on two issues in particular - technology changing the rules and raising rights issues and the responsibilities of the different stakeholders.

We will consider new ways of serving those key stakeholders artists, producers, consumers and distributors:

• Creating the best environment for artists to express themselves and be fairly compensated
• Consumers should have ready access to the content in desired forms and fair prices
• Producers should be appropriately compensated for significant value added services
• Marketing and distribution should be appropriately compensated for their added value

The debate on the future of the recorded music industry is influenced by the advent of new technologies that suggest possible shift in the balance of power to the consuming public. The ripple evects go all the way to the artist. The reverb is industry transforming. Look at the Your Top 10 for Last Week section in Music Industry News Network

The Berleley movement in open source suggest a new commons - read Lawrence Lessig's Essay

If you have not read Lawrence Lessig's book - The Future of Ideas - I highly recommend it

Many actions, perceptions, realities and beliefs are pumping up the volume of the discussion

• The arrival of the MP3 format has sent a shock wave through the music industry.

• By now the recording industry shouldn't need a weatherman to tell which way the wind is blowing. It's hitting gale force at the industry and threatening to blow the house down. Billboard

• Sales decline by 25% amid claims that pirating is the direct cause.

• On the first day of business, Apple's iTunes sold a million downloads. By early August, more than 8 million tracks have been sold.
• Groups like Metallica and Red Hot Chili Peppers refuse to release their music to iTunes.

• Microsoft Corp. announces a pact with OD2 to form Europe's first major online music download service.

• Prices in Europe will continue to soften if Apple enters with iTunes.

• Downloadable music will climb to the apex of distribution, pushing down but not replacing the formats that have come before it. Charles Haddad, Businessweek

• Phish sidesteps record industry to cash in on online opportunities - livephish.com profitable from day one.

• Who should decide what is the art artifact (song or album) - the artist, producer or consumer?

• The U.S. recording industry recently received a setback in its nationwide campaign to quash music piracy on the Internet when a federal judge ruled that two universities did not have to comply with subpoenas requesting that they hand over the identities of students who could be illegally sharing music online. IDG News

• Criticism of the recording industry's anti-piracy campaign increased as NetCoalition internet trade association said it was worried that its members could be forced to police the Internet for illegal song copying.

• Getting this one right is important as many other industries are beginning to face such pressures - movies, books, education and other knowledge channels.

Reminder - Our own DIA Professor Patrick Noonan has taken the lead in founding the Museum of Music (visit):

We think that you will find the session to be interesting and informative.

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We welcome comments and requests for additional information

You can write Benn Konsynski or the Goizueta Business School alumni at:

DIGITAL COMMERCE Benn Konsynski Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6698 Fax: 404-727-2053		G B S Alumni Natalie Miranda Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6723 Fax: 404-727-4983

Email:
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Updated 8/14/03 Benn Konsynski

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