Bringing Home The Bacon
My favorite news story of the week broke last Friday. A 26-year-old kid named Allan Ellis was cleared of conspiracy to defraud the music industry—whatever that means. A jury of 12 unanimously voted a “not guilty” verdict after a 2-week trial at the Teesside Crown Court in the UK.
There were a lot of colorful accusations thrown at Ellis by prosecutor Peter Makepeace referring to the defendant as a “cunning” liar. Makepeace appears to be quite the zealous defender of the music industry. I’m sure he has a bright future ahead of him in the private sector if and when he decides to leave public life. I can think of at least two organizations that would love to have him.
Meanwhile young Mr. Ellis’ lawyer claimed that back in 2004 when he first launched Oink, he had no idea that he was doing anything dishonest. I’m not so sure I buy into that one, Allan. Come on now, you didn’t grow up in a cave. And 5 years ago the whole world knew about the Napster and Grokster cases. But the old pirate in me is kvelling a little over the verdict.
I don’t know why I feel that way. I guess it just feels good to see the little guy win one. Let’s face it—it’s not that frequent. I have no idea how courts in the future will react to the verdict. Since it can’t be appealed I’m sure that it will set some sort of precedent.
Clearly the industry is not too happy with this. I don’t blame them. Seems like it could really come back to bite them on the ass. And how this affects Lord Mandelson’s Digital Britain proposals is anybody’s guess. It’s too early to tell. And what kind of ripple effect, if any, will this have in other European courts?
I think that the real message here is much more profound than legal precedent. What it tells me is that the average Briton is no friend of the music industry. And by extension all content owners. It’s as though the public is telegraphing their distrust via jury nullification.
Up to now the music industry has been looking for government to do their dirty work for them. But waiting for governments to act is often akin to waiting for Godot. And the one thing that politicians are influenced by other than special interest money is an angry electorate. They don’t want to piss off their constituency.
Instead of constantly using the stick to solve their problem, the industry has to start growing bigger and better carrots. A kinder gentler touch would be nice as well. The bottom line is that the business has to be a lot more consumer sensitive.
An industry that has been cut in more than half over the last 10 years and is consistently losing 10%-20% every year—consistently—with no end in sight has to do a lot of self-examination. The truth is that it’s not totally due to piracy. There are a lot of factors at play.
And by the way, Apple can’t solve all their problems either. But that’s another story.
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Posted by Wayne Rosso
on Jan 19 2010. Filed under featured, Wide Angle.
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Bob
I don’t disagree with your comments. But I believe that you can compete with free. After all, every p2p network and bit torrent site is making money off of giving away content.
But please be clear that I was not criticizing record labels for reaping all of the profit. I was merely saying that I believe that many of the fans and general pubic feel that way.
My worry is that even 10 years after Napster, which is an acknowledged screw up on the part of the record industry, not that much has really changed. One would imagine that rational people would learn from there mistakes. Mind you, there are exceptions. But overall, the mindset is pretty much the same.
“I think that the public actually wants to pay, if they are confident that the artists will actually be paid what they deserve. There’s definitely an impression out there that the record labels are reaping all of the revenues and passing on nearly nothing to the artists.”
Wishfull thinking. People download free music because THEY CAN. If they could take a car for free the same way without consequences, they would. Only a minority of people like music enough to support the artists : The others won’t care unless you force them too. The excuse of the record labels reaping all profit is just that. AN EXCUSE, and a really bad one.
We can’t compete with free!
Paul
All good points. But there are answers. How about compulsory licensing? That would solve a lot of the issues you raise. But that is a third rail in the music business.
You are right about some wanting to keep on stealing no matter what, but I really think that it is possible to minimize the effect providing the content owners are bold and creative enough.
Let’s not forget that the record labels, although equity owners, have become very resistant to the likes of Spotify, especially when it comes to licensing them in the US.
It all boils down to price. I think that the public actually wants to pay, if they are confident that the artists will actually be paid what they deserve. There’s definitely an impression out there that the record labels are reaping all of the revenues and passing on nearly nothing to the artists. Reference the latest reports about Lady Gaga’s checks from Spotify.
Regarding your point about it being dirty work for wanting to get paid, you’re right. But the process is indeed dirty work. Like hiring a bill collector.
Thanks for your comments. I appreciate the thought.
Wayne
agreed on the carrot there, Wayne, but show me the carrot that looks more attractive than ‘free’ (to one section of the torrenting community – the other side [yes i'm being simplistic here] I acknowledge does see the value and does support artists that they listen to).
No matter what the industry does, no matter how attractive the offering (spotify, Napster etc) certain sections of the downloading public would still not acknowledge the value exchange that has taken place – even if the offering were exactlty the same as their beloved tracker sites.
In addition, these sites like young Allan’s need to be regulated or cleaned up as they deter the entry in to the market of legal – or acceptable – alternatives that actually reward all those (and yes I mean those evil labels as well here) who are part of that value chain.
P
p.s. why is not wanting people to steal from you classified as ‘dirty work’?