Saturday, April 7, 2012

Universal Music Claims Piracy Justifies Monopoly, Wants The Power To Control Digital Music Services

In a brief article discussing how the European antitrust authorities do not seem too interested in buying EMI, Universal Music, Universal Music and turning (and the biggest house music) into a real player dominating the market, there is a little gossip:
Fonts anonymous
Universal informed the journalists that the competitive threat to the consolidation of digital piracy, the media should be allowed. Critics have noted that the new entity shares of 40 percent of the market become the kingmaker for digital music services - and no service, then it could survive without the Universal catalog.



We talked about how the labels were looking to turn the screws on Spotify to wrest even more benefits of the company was still in deficit. But really, when you put these two sentences from side to side, it shows how ridiculous the majors - and world music, in particular - are today. Because of "piracy", to be able to combine to create an even more aggregator of music catalog ... limit the music itself that appears in the platforms and innovative new digital music, unless the payment platforms beyond reason.

Get it? Response to Universal Music piracy is the creation of more piracy and limit innovation. The genius of the company (and remember, this is the company whose former CEO, once admitted that he was too ignorant to even hire someone who could explain how modern digital technology worked - and not just be drawn from this admission, but was able to enjoy the dismissal of a new job with Sony Music last year) are basically saying that the only way we can compete with "piracy" is dominate the market so that any company that offers a music service has to be agreement on the terms, or not to include its catalog. In other words, wants veto power (and the power to extract rents ridiculous and unbearable) on innovations in music services.


course, this is a really stupid plan for many reasons, but the two great call. First, the problems of society are not caused by "piracy", but by a stubborn refusal to adapt to a changing market. Second, by limiting innovation in the digital music space is increase
the amount of the violation, by (1) making it profitable for most companies be in this space and (2) limit the real innovation and expertise between services leading to the nature of innovation that consumers want. Instead, I'll just go with what works. Violation open
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