If the record companies would wake up to the fact that media is now being obtained in other manners than purchasing CD's, and actually embraces the downloading of music as beneficial to all parties, piracy would decrease immediately.
Maybe they should specify the following:
a) royalties paid to the artist
b)manufacturing costs
c)investment in new artist by themselves
d)marketing and promotion
and then calculate a fair price for a song bought over the internet. Judging by what Allofmp3.com is doing legally, I would be very surprised if the artists royalties exceeds 10 cents per song, and lets judge the record companies investment at 20 cents a song. We add a profit margin of 30 cents and we come up with a fair price of under R1-00. This model can also now include computer infrastructure in that price.
I do not beleve that anybody in their right mind would pirate music for that price as itunes for example proves with a vastly more expensive cost. The benefit of downloading music from a reputable source far outweighs saving R1-00 on a song. I also believe that inherently nobody likes to steal music from the artist and would gladly pay R1-00 if the song was good. Also by marketing like this, there is one central point to introduce new acts, albums etc. I believe that the winamp videos and yahoo proves invaluable as a marketing tool these days. I would also without doubt say that anybody owning a mp3 player, 10 to one has a connection to the internet
Thbe people talking about piracy are the same excutives trhat had to be taken to court by the actors when Video was first released and I believe that the same happened with DVD. The company bosses refused to pay artist royalties because their contracts did not specify video as a medium. So much for honesty!
And seriously how many times must one pay royalties for the same product. In fact if they were honest, I could have upgraded my record or tape collection to cd for a fraction of the cost. The same applies now to the model they have for DVD's and UMD movie and video- if you buy both you would still pay intellectual property on all of them. They also prevent you from making backup copies of discs, so when they get damaged they expect you to pay the intellectual property again? I believe that my so-called piracy is far less than the acts of theft that the record and movie companies have effected on me. In fact when I buy again, I should only pay the manufacturing costs.
This does not even cover the zoning of media(to protect monopolistic ccompanies in certain regions) or the inavailabilty of media(such as itunes being American) or the three tier martketing process-movie, rental and then only direct sale, all geared to get more and more money out of the same product.