2.2¢ : Immaterial Music World

A class blog entry without a given topic is definitely a more difficult assignment compared to a guided blog. I, as a student, am used to the rules, guidelines and specifications to complete a school assignment because it’s an expectation that I learned from the previous experience. In the real world, people live by rules and regulations, hence chaos and disorder is never a preferred state of the situation. Nevertheless, we adapt to changes very quickly when it’s about benefit (or, maybe, survival). I think human beings are not used to changes, but the world is changing around us. The music industry especially, as we discussed in class, is changing so much more rapidly and dramatically in the last decade than in the entire 200+ year of sound recoding history, started with Edison’s first phonograph in 1877. Everyone likes music, perhaps different type of music, so it’s not a big surprise that the general public quickly adapts to the digital format of music and never returns.

I work for a high-tech company in Austin, and my job is to work with attorneys on protecting the companies’ intellectual properties. In a nutshell, we are not looking for ugly patent litigations; we are looking for opportunities to license competitors and collect royalty. Almost all the large high-tech companies have an offensive IP licensing program to protect their rights, and I believe the RIAA brought up all the music download lawsuits simply to "protect the copyright". Because I work with law, I absolutely support the act to protect the artists rights; however, RIAA is doing too little and too late. Because the major record companies/RIAA did not participate in the creation of digital music, they can not technically stop the illegal usage or spread other than bring the problem to arbitrage. However, rule of laws are exercised differently by governmental authorities all over the world. The main reason that iTune/iPod hasn’t get as popular in Europe as in US is because peer-to-peer downloads are not actively pursued as criminal acts. RIAA is working with IFPI (International Federation of the Phonographic Industry) over the years and over 26 other countries. Hence, 2005 was the first year that UK and Germany reported more legal download than illegal ones.

However, according IFPI’s report, digital music business only accounts for 6% of the record company revenue. I personally think the on-going music download litigation is not an answer to reshape the industry. All the expenses only profit the pockets of attorney at the cost of music lovers. More effort from the industry should be spent on exploring the new era of customer segmentations and supporting more talented artists, or creating a better technology. For example, some baby boomers are technical-savvy, but some, like my parents, are just barely in touch with CDs and DVDs. They probably are not into rapping with 50cent’s In Da Club, but they may enjoy singing along everyday (seriously, everyday) with Sinatra’s New York, New York. I had to educate my parents that music on CD will be ruined after excessive times of playing, but not music on MP3. Moreover, thousands more of Sinatra classic songs can be stored/replayed without taking any space. All they need is a computer (and money to buy music online, of course). 'It’s like a Star Trek "Tranporter", but we use it on music, for now.'

As I remember from high school physics: "it is only possible to study immaterial forces like gravity by observing their effects on the physical world". Music with technology is another immaterial substance that changes our lives. People in my generation are bombarded with novelties that come with technology. We are exposed to all the media and word-of-mouth buzz which provide means to adapt to the digital music world. However, customers from certain demographic and psychographic are left behind, who apparently account of the rest 94% sales. Maybe they are the key players to revolutionize the music industry once again in the nearest future.