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A couple of points in response.
"A physical copy of that information is worth about a dime now."
To you, perhaps, but a lot of people still buy CDs and you are completely disregarding LPs. A lot of people buy MP3s on iTunes and elsewhere. There is definitely a class of people who WANT to spend money on music (be it CDs, LPs, MP3s, live music, whatever) and smart record labels are trying to connect with those people specifically. I for one probably spend more money on vinyl than food and shelter -- I am the kind of person that record labels should be trying to market to.
Record labels have more than "limited legal authority to dictate the circumstances under which that information is copied" -- they have legal authority. Enforcing may be a little trickier but they do own the music, whether you like it or not.
"How can we get past the idea that people owe a record company for shoveling bits around"
I think this is a pretty facile way of looking at the situation. Record labels do a lot more than this for their bands (please see earlier posts for more of me arguing on behalf of the label). You very almost point out yourself that without the support of labels (or some other system) artists will be operating as "hobbyists" -- this brings up the very legitimate point that (at their best) a record label serves as a support system (largely this support comes as money for studio time, tour support, etc) for artists which allow them to focus full time on their art.
Overall, I think that you may be viewing the situation in overly black and white terms. Before advocating for the "demise of these obsolete and hopelessly-clueless middlemen" perhaps a deeper understanding of the system (the positives and negatives) is in order?
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I absolutely agree that a vinyl LP still has additional value. There's far more information on it than can be represented on a CD, and most people do not have access to equipment to produce it. I was speaking specifically of digital audio. A blank CDROM or 700MB of hard disk space costs roughly a dime. The cost of transferring information onto the storage medium is negligible.
Record companies' and musicians' authority to dictate the circumstances under which information for which they hold copyright is limited. Consider fair use, backup copies, and transfer from one medium to another. Consider any copying in other jurisdictions.
I know people who WANT to provide financial support for artists' work. I don't know any who WANT to spend money on audio recordings. I believe that when they do so, it usually happens because they are either unaware of or afraid to participate in alternatives, or because it's presently the best way they know to give some money to the artist in a show of appreciation for the work. I didn't bring up live performances, which are entirely different than audio recordings. It makes sense to pay for a service. It doesn't make sense to pay for information. I went into lots of detail on this in my response to CleverScreenName's answer below.
People may owe record companies for things those companies do *other than* shoveling bits around, but the pressing and delivery of a CD simply isn't worth $15 on the free market. I don't know everything that record companies do, but I know they spend lots of money bullying people around in court and advertising the latest boy bands. I don't want to buy into that, and I don't think most people do, either.
I did not "almost point out that without the support of labels or some other system, artists will be operating as hobbyists". I wrote that "we can't expect recorded music from anyone but hobbyists if those of us who listen to recorded music don't find some way to chip in on the cost of creating those recordings." I don't know how to clarify that. If people can't support the cost of being professional musicians, we'll be left with music from people who don't make music for a living, but just do so as a hobby.
No one speaks in more ridiculously black-and-white terms about the issues surrounding the conveyance of information that is a digital representation of an audio recording of a musical performance than the record companies do. They have worked for years to convince us that copying information without permission is akin to the violent hijacking and robbery of a ship or to taking something away from someone else. Making a copy of some information stored on some computer connected to the Internet is not piracy, or even stealing; it is copying information without the permission of someone who was granted a limited monopoly on such by our government.
If my image of record companies is flawed, it is almost certainly so as a result of their PR campaigns, their lawsuits, and their years of producing utter crap while cooperating with commercial television and radio to shove it down people's throats. Like I said, there are surely good ones, but in my eyes and in those of many people, the bad ones have already spoiled the bunch.
See also: FRONTLINE: The Way the Music Died http://www.pbs.org/wgbh/pages/frontline/shows/music/
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I think you bring up a lot of good points here (as you did in the original question).
Regarding paragraph one - people constantly pay more for things then the cost of the individual elements that make up that thing. That is a big part of capitalism, right? I almost made a Big Mac analogy here but I think you get what I mean. What is important isn't what a thing costs but instead what people are willing to pay for it. Right?
Paragraph two -- I totally agree, except I would replace the word "authority" with "ability".
Again, I (and other people - including commenters here) choose and do want to spend money on records, cds, mp3s (be it for artwork, convenience, or whatever). Sometimes for me it is as simple as wanting to play a song for someone bad enough to spend $.99 at iTunes. Now, that is certainly lazy consumerism -- but lazy consumerism is a reality that record labels (as well as other companies) can take advantage of.
As for $15 CDs -- I agree the age of $15 CDs (as a standard) is pretty much over. We try to hit $10 and $11 dollar price points (often new releases will be on sale for as low as $9) to make it somewhat more reasonable for the consumer.
Regarding hobbyists vs professional musicians. I didn't mean to put words in your mouth. My point I guess is that the system in place (record label pays for recording - consumers buy recording - record label pays artist) is a system that allows for certain bands / artists to make a living making art. Is it a perfect system? No. Is it a system in danger? Maybe / probably. Are some labels still finding ways to thrive? It seems so. I would argue that for whatever evils record labels have committed / perpetuated one thing they did do is help fund and create a lot of really great art. Right?
Getting to the crux of our disagreement -- if each of us had used qualifiers we might not be disagreeing at all? I think you are talking major labels and I am talking indie labels maybe?
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In general, yes, I think I'm talking about a different class of record companies than you are. Please forgive me for neglecting to read your Questionland profile earlier, which would have clued me in to this.
Paragraph one: You're talking about supply and demand in the free market. With the RIAA out suing people who choose alternatives and their cronies out manipulating our laws -- even participating in closed-door international treaty negotiations, this is hardly a free market.
Paragraph two: I wrote:
Note that by "steal" I mean to take something away from someone else without permission, leaving the other person without that which he previously had, not to copy information without first getting permission from someone who has limited legal authority to dictate the circumstances under which that information is copied.
You responded by disputing that the legal authority is limited:
Record labels have more than "limited legal authority to dictate the circumstances under which that information is copied" -- they have legal authority. Enforcing may be a little trickier but they do own the music, whether you like it or not.
I responded by citing examples of limitations:
Record companies' and musicians' authority to dictate the circumstances under which information for which they hold copyright is limited. Consider fair use, backup copies, and transfer from one medium to another. Consider any copying in other jurisdictions.
You responded, confusingly, by agreeing with my dispute of your argument and quibbling over authority vs. ability:
Paragraph two -- I totally agree, except I would replace the word "authority" with "ability".
I still contend that people don't want to pay money for something when they don't have to do so.
CD pricing: $15, $11, $10, or $9, unless I'm interested in a nice printed copy of the liner notes or the warm fuzzy feeling that some of my money will indirectly go toward supporting the artist who created the music you recorded and copied, you're still not offering more than what I can get on my own for about 1/100 of the price you're asking. And on top of that, I'll end up with this disc and box I have to store somewhere, and I'll have to do the digital audio extraction, FLAC encoding, and metadata tagging on my own. What a deal.
Alternatively, when I find a copy of some music I like and I want to give some money to the artist as thanks for the gift gave to the world when he recorded the work, what am I supposed to do? Go to the store and buy a damned CD, share my money with some really nasty company like Sony, and throw the piece of plastic in the trash? Something about this system has to change.
For $10, I better get a piece of vinyl with the analog audio stamped in it and convenient access to a well-encoded and thoroughly tagged -- both in standard, non-proprietary formats without digital restrictions management -- set of digital audio files. But the asking price for such a package these days is, what, $80?
With record companies, it feels as if I'm being coerced into paying them to market stuff to me, to cover whatever relationship they've purchased from Clearchannel, to threaten college kids with lawsuits until their parents settle out of court for thousands of dollars, to install spyware on people's computers, and to corrupt our copyright laws. I don't want any of that, and I certainly don't want to pay for it.
If indie labels aren't into all the crap that the big record companies are, they really should get the word out about what they do do, and how it's of value to people like me, not just to musicians.
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Indie labels are not run by saints or anything, but they don't do any of the things (as far as I am aware, and my experience is certainly limited here) that you outline in the second to last paragraph here.
Regarding the free market stuff...I will concede that it isn't really a free market. People that have power are going to use it to keep the playing field un-level -- but I honestly think that is a reality that is going to exist whatever the system of music distribution is. I mean, right?
Digging this conversation by the way!
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Yes, this has been an enjoyable discussion all around. I've made many of these arguments numerous times among friends, but never previously with the opportunity to get responses from anyone who's personally involved in the issues at play.
I wrote the following two paragraphs in response to someone else's question, but I want to bring them to your attention:
"An arrangement whereby information is conveyed in exchange for money with the agreement that the person to whom that information was conveyed will refrain from conveying it to others without permission is bizarre. Even more bizarre is to accuse Bob of anything other than a violation of an agreement he made with Alice when he conveys information to Charlie which was conveyed to him for fee by Alice. Furthermore, when Charlie in turn conveys that information to Doug, any agreement that was made between Alice and Bob seems irrelevant. Corruption of our copyright system, which was intended to spur the development of creative works that would eventually be added to our public commons, has resulted in the ridiculous system we have now, in which Alice can successfully sue both Charlie and Doug for a conveyance of information from Charlie to Doug that did not in any way involve Alice or her belongings. What's wrong with us?
"Anyway, I'd like to hear from the panelists how we can get record companies out of the way so we can move on with figuring out how Bob, Charlie, and Doug can support Alice's efforts if they appreciate the fact that she worked to release information into the world that can be used to make sounds to which they enjoy listening."
Really: I strongly dislike what's happening with U.S. copyright law now, but not because I want to get something for nothing. The system is being abused, and the primary beneficiaries are neither artists nor the commons. Until we fix it, I've chosen to drop out of it. I suspect that if more people would do so, artists would suffer in the short run, but benefit in the long run. I don't consider myself an artist, but I really like being around artists and their work, so I want us to find a way for them to support themselves by making art.
What I have particular difficulty getting across about this whole issue is the idea that the power structure has been turned upside down. In most of our minds, to get an audio recording of some music, we must either steal it (physically, like go take a CD away from someone) or pay the price that the seller is asking. Americans aren't used to negotiating for anything but homes, automobiles, or in conjunction with second-hand sales from individuals, so we expect prices to be firmly set by sellers, and that we can either take it or leave it. The reality now is that the information which is encoded on those compact discs is mostly already floating around on the Internet. As the price of Internet access drops and bandwidth increases, this factor will be even more significant. Basically, once you've released a digital recording into the wild, it will nearly-instantly be replicated nearly-infinitely. This situation is, I think, inevitable. So laws aside (relatively, and increasingly, unenforceable ones), one need only dip his cup into the river of the Internet to retrieve a recording of some music one wishes to hear. Given all that, the decision of how much money will be provided to the producer of a recording now rests mostly with the "buyer" and mostly not with the "seller".
We're looking at a few more years of RIAA lawyers chasing people around and shaking them down for their unauthorized copying, but that is rapidly becoming futile, and it's pissing off a whole generation of people to the point where they will avoid doing business with RIAA's constituents on principle. In the long run, the propaganda campaigns can't keep up with exposure to reality. So I honestly think we need to be looking past past that, past the days of paying for copies of information that we can easily make on our own for very little cost, and toward a system that rewards artists for good work. As long as people enjoy live music, musicians will be able to earn earn money by performing. They're just not going to be able to record their work then go out and sell copies of it. We need a cultural shift from the idea that with recorded music we pay because it's the only feasible way to get what we want, to one that has us paying voluntarily because it's the right thing to do. We already do this with waiters and buskers, both of whom would certainly prefer to force us to pay up front via the force of the law or threats of civil lawsuits by some industry association.
The unfortunate part about all this is that (some) record labels and the RIAA goons have worked so hard to convince people that they should pay for the privilege of listening to recorded music *because* copying music without permission is, they say, stealing, that once people wake up and realize it's not stealing, they are likely to be left without any feeling of obligation to provide financial support to artists. In essence, people in your business have somewhat successfully convinced the public to do the right thing not because it's the right thing to do, but because the law presently says they should do so. So when the threat of legal repercussion is removed, people will be unlikely to do what we should be convincing them -- right now -- to do regardless of what the law requires.
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As a thought experiment -- would you feel the same way about this if we were talking about easily reproduce-able works of physical art? Sculpture made from casts, or prints?
Now, if a person had the tools necessary to re-cast a sculptor's work's would you be okay with them doing that?
My point here is that when we talk about music / recordings we are not just talking about "information", we are talking about art. I think you are gaining a lot of mileage in your arguments via that terminology and I don't think it is totally accurate.
(sorry, I am a bit rushed here but wanted to throw that out there; hopefully it is at least mostly clear)
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