Pricing Digital Music: An academic perspective

April 25, 2007

the_analog_hole_is_my_ear.pngTrolling SSRN I came across another academic report destroying much of the FUD put out by the RIAA in their attempt to criminalize digital downloads. Like all good academic studies it has a cumbersome and wordy title, The Analog Hole and the Price of Music: An Empirical Study, which belies the rather simple text contained within.

The report starts off with an exploration of the analog hole , which frankly isnt that interesting but then goes into how the analog hole will effect the pricing of digital music. They set off to answer two questions: Do consumers perceive a difference between analog hole copies and the originals? Kinda. At what price would they be willing to sacrifice some quality? Twenty-five cents. The sample size is pretty small for the survey, only 66 respondents, but the findings are really interesting. Read the full report here and check out the abstract here:


RIAA to America: You’re All Guilty! So Pay Up.

March 4, 2007

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Tasked with rescuing the major labels from it’s very public death spiral, the Recording Industry Ass. of America has struck on a novel idea. Sue Everyone! Not just old ladies and children but everyone in the US. While you might think it’s a joke, its not. As a first step in their plan to sue everyone in the US the Recording Industry Ass. of America has launched a website where anyone that has received one of their “We’re gonna sue you” letters can go and settle-up.

The Recording Industry Ass. of America has invited a couple hundred college students to beta test the site (via “We’re gonna sue you” letters sent to them last week). The key to the Recording Industry Ass. of America’s plan for suing all American’s is the total automation of the process, from initial bullying to final ransom. The launch of this site, completes the automation process and now the Recording Industry Ass. of America can identify, accuse, threaten and shakedown every American without having to have expensive, and increasingly counter-productive, court appearances.

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