Tag: riaa

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MDNA: sales vs. torrents

I simply burst out laughing reading the Detroit News‘ article regarding Madonna’s sharply falling record sales.  Her latest release MDNA debuted at #1 last week after selling 359,000 copies according to Nielsen SoundScan. Yet as the article indicated: Madonna set to make the wrong kind of chart history.  Clearly author Adam Graham (@grahamorama) has no idea how torrents have simply crushed the music industry.  If he does understand — it was not mentioned in his article.

Riddle me this: How does Nielsen, Billboard or any other entertainment resource accurately reflect the impact of torrents on sales?  Ah….they can’t. The fact that Nielsen/Billboard still lists “traditional chart history” tells me another analog business is choking to death on the globalized internet.

I have come to accept that illegal downloads are no different than drugs, ebooks, guns or music.  All are in heavy demand.  The only difference: ebooks and music use the internet. Supply and demand.  Nothing more.

Its been a long standing issue for me to see mainstream media really show how inept they are when it relates to the globalization of the internet.  So what exactly did Adam Graham miss?

If you really want to understand the way the world works…

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Latest read: Remix

Regrettably the Vancouver Olympics interrupted my reading pattern and its been a slow recovery.  I blogged about this book as soon as I learned it was in production back in August.  Yikes!

Remix: Making Art and Commerce Thrive in the Hybrid EconomyI have been following Larry Lessig‘s work on copyright and our digital culture for some time, reading his positions online, previous books and keynote addresses at TED, Wired and last week to Italy’s Parliament among others.  His work on Creative Commons is a direct action from the creative limitations of copyright.

His latest book Remix: Making Art and Commerce Thrive in the Hybrid Economy is a very easy read for anyone who has also known his work.  He tells an important story about how new technology is clashing with old money.

Lessig illustrates how copyright’s old money (the big media empires) are clashing with today’s society and technology.  Old money is winning financial amounts here and there, but ultimately they are cutting their own throat as they can no longer control content.  Their motto: since we cannot have it our way anymore (due to the easy distribution of digital content) we are going to sue as many people as we can and take outrageous amounts of money along the way.

Lessig simply points out the two different camps: Read-only versus Read-Write.  Look at popular consumer phones and computers.  Today anyone can create a short video and post it to YouTube.  And by today’s “standard” in social networking — your somewhat expected to post multimedia content on Facebook and YouTube for example.

But post a 29 second video of a baby dancing to Prince’s Lets Go Crazy and Universal Music (they own Prince and his music) files a lawsuit claiming copyright violations.  Its old money trying to control society and Lessig points out it clearly no longer works.

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Latest read: Hot Property

Its all in the timing.  The global economic crisis has placed my latest read Hot Property: The Stealing of Ideas in an Age of Globalization into a pretty unique light. Regardless of the delay in the US economy the impact of globalization, technology and good old corporate espionage has impacted the world’s stage in manufacturing and distribution.

From aspirin to automobiles with computer technology stolen right in the middle. Author Pat Choate, an economist was the 1994 University of Oklahoma Arthur Barto Adams Alumni Fellow.  He has also written Agents of Influence: How Japan Manipulates America’s Political and Economic System.

The core arguments focus on the use of historical legal patents and technological advances of foreign companies competing against American interests by stealing.  Today its known as corporate espionage.  The end result: the US government does not protect companies in today’s global marketplace.

This book will leave most Americans frustrated.  Globalization has changed the way people and business must evolve to simply stay in business.  The auto industry is a timely example of how America lost this business to global competition.

The old assumptions in American business do not work today. When you innovate and invent, patents will protect your dedication and hard work against competitors around the globe.  How wrong Choate proves this idea is today.

Hot Property will quickly show you how far from the truth the real-world works … against you.  Reminds me of T-shirts I see around the Univ. Wisconsin-Madison campus:  “Don’t let school get in the way of your education”.Choate illustrates how major American companies like GM, Microsoft and Cisco are powerless to stop Chinese counterfeiters. To remain a “favorable company” in the Chinese market, American companies sacrifice their own development, technology and employees while trying to gain business in China.  It is somewhat amazing to see the RIAA use it’s legal arm against elderly Americans for downloading an MP3 file but turn a blind eye to the stunning levels of piracy in China.

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Latest read: China Shakes the world

I found myself fascinated by China Shakes the World: A Titan’s Rise and Troubled Future – and the Challenge for America by James Kynge. Yet most of the time I was also infuriated over how America has fallen asleep regarding China’s threat to our economy.  Kynge has written an excellent book that should be read by every school teacher, mayor and businessman.

It was my goal to finish this book before the end of the summer Olympic games.  But I needed time to finish Randy Pauch‘s one of a king book The Last Lecture (review is here) so this week was plenty of time to complete this book.

Infuriating?  Yes Kynge shares a startling story about how the Chinese almost secured the assets to the American company that produces stealth coating to the B-2 bomber.  Yes THAT Stealth Bomber.  Now are you interested in what Hynge has to say?  It was Financial Time’s Book of the Year.

So how does America’s secret stealth technology (a skin made with highly specialized thermoplastics and composites which are radar-absorbent) come within arms reach of the communist Chinese?  Did they try to steal it?   No, they almost purchased the technology outright.

What about pirating and corporate espionage? China plays this game very well too.  And based upon the communist’s approach to banking, well lets just say their idea of business as usual includes very loose, corrupt accounting…kinda reminds me of Enron.

If you are frustrated with the RIAA’s music lawsuits against college kids encourage the RIAA to go to source in this matter: China.  The Chinese have truly become the world’s leading Pirate Nation. A word of note to the music and movie industry: Do you really believe your lawsuits against college kids is making a dent in your attempt to stop pirating?  Go to China.

The Chinese impact
It’s not on the gold medal stand in women’s gymnastics.  As the saying goes … if your not cheating, your not winning.  Regardless, it was the American gymnast Sacromone who fell of the beam and floor exercise that cost the team gold medal.  I know the Olympics bring out national pride. We all feel good about cheering for our athletes during the 16 days of competition.  But what about the other 349 days of 2008?

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On my reading list

Looking forward to Larry Lessig‘s new book Remix: Making Art and Commerce Thrive in the Hybrid Economy.

Larry has documented how the music and movie industries are turning students into criminals because they use cheap software, the internet and their creativity.  His presentation at TED hilights the core principals of his upcoming book.

The power and impact of the digital economy has placed copyright and the old guard clearly on the defensive.  Those aging companies still want the market to be “published” (in analog format) are unwilling to change to the new information economy.
—Well okay what I’m really trying to say is they don’t want to give up their revenue streams.

Okay maybe they do understand how the game has changed, yet I’m not sure the impact of how young people are wired has fundamentally changed their business model.

Actually I’m hoping Remix may also hilight how the RIAA should be chasing down the millions of pirates in China rather than students in America.  Larry is proving what everyone under 30 already has accepted as a fact of life…They have never been forced to purchase a majority of their entertainment in analog format.  Should be a great read!