Tuesday, August 02, 2005

Mark Cuban defines insanity

Insanity is repeatedly telling everyone that piracy stops the creative process by preventing artists from making a living and then time and time again, going out and giving advances to bands. Hello McFly, every start up band thinks the money is in getting the advance of a record label deal, not from selling music. They are just as motivated as ever to make music.

Insanity is continuously trying over and over again to “fix” the CD ripping problem hoping to find DRM software that makes the process more difficult and deters the “good people” from creating illegal copies, while completely ignoring DVDs as a solution. A DVD only allows you to use its increased storage capacity to add more value through more music, games, video, pictures, software, whatever, at about the same cost of a CD, while being far more of a pain to rip than any DRM/CD combination the industry has ever come up with. Dual release on DVDs and CDs and over time elimination of CDs will have far more impact than any DRM on CD solution.

Insanity is watching the digital download services develop customer relationships with music buyer after music buyer, while year after year the labels have none. When are you going to learn that it’s not only about hitting the numbers for Wall Street every quarter but investing in your customer base. ITunes, Amazon, Netflix, CinemaNow and others have my credit card on file and can find me and sell me something in seconds. Create your own services and sell the music at a deep discount to Itunes and the others. Make it easy to buy, cheap to own. The short term pain will be well worth the long term gain



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