I've been reading a lot about file swapping, legitimate sales figures and growth in iTunes etc, and following a lot of Hexus.Lifestyle which covers a lot of these long term visions.
So i'd thought it be good to throw this over to the main body of hexus and raise the question of Digitial media being a problem for record companies.
For a start the one thing about Digital media, the more and more it gets distributed the more complex and restrictive the Digital Rights Management is becoming. So from one aspect here people are going to simply not buy the product because of the lack of "fair use".
So after we lose a percentage of people to this type of media, i guess we also lose a percentage of people without internet connections/pc's etc.
But last but not least i guess what i'd really say i'm aiming at in this thread is that once you go to digital media you do not get the benefits of selling the media again in a different format. Anyone converting their vhs collection to dvd, or their tape collection to CD, or MD.
So while digital media should be being embraced and i'm sure it will be, does anyone else see that the record companies have got a real issue on their hands in the future from the simple legal use of their media.
To back this up, just look at the headline figures for DVD sales from this BBC news piece
Sales up, turnover down. Its simple economics that once you get a media out there, the costs will be high at the start and begin to drop as more and more people use the media. Not changing the media in the form of digital surely creates a huge problem for the media companies?.
They certainly can't charge for physical production costs, and while i'm sure they might be happy with the extra profit they make from this difference at the start, the pressure they will feel in time to bring prices down must surely start to hurt them in time.
The next thing with digital media is that once this has been turned to mass market, are we still going to see the likes of HMV/Virgin Megastores etc being around, are we going to see people impulse buying the new CD they heard on the radio etc?.
Lots of questions and maybe if i was the media companies, i'd certainly be more interested in looking at these questions than spending time worrying about the illegal side of downloads?.