The RIAA just won the lawsuit against file sharing service Limewire. While this is necessary and meaningful, noone believes file sharing will stop. There was a good comment I read today on Jeremy Silver’s blog.
Worldwide expenditure on anti-piracy measures is out of all proportion to the worldwide investment in new digital content business models. More importantly the investment in new ways to invest in content is not coming from the music industry. It’s coming from new entrants who are faced with the prospect of rights holders who make it difficult and expensive to try new things out. Rights holding companies typically demand advances and even equity in companies that dare to enter their sector with a new idea for creating economic growth.
This will be a long struggle to find methods of digital distribution of music where artists are compensated fairly. It will have to happen, however. It’s not just the music business that is affected. It’s any creative content producing entity that releases their product in a digital form: software developers, print publishers, news outlets, mobile app creators, television and movies, etc.
More to follow…