Major Record Labels, Darwinism, and the Future of Intellectual Property

It's been over a month since my last post here. However, nothing has changed, and everything has changed in the world(s) of major purveyors of intellectual property. And with the Writers Guild on strike, it makes ya think (okay, it makes me think) about the whole intellectual property landscape, and how physical media are overvalued.

The short version: Intellectual Property is about what's in the mind(s) of its originator(s)! So many are concerned these days with the media on which the darn things are sold. The physical forms by which some entrepreneurs choose to sell intellectual property are but one means of capitalizing on it. Even those who focus on the digital transmission of music, lyrics, screenplays, and whatever else, are often myopic in their view.

Sorry, I'm full of big words and complex sentence structures today.

Let's review what's gone on in the past 6 weeks or so.

1. Radiohead has released their current album without the backing of a record company. They've made some money, and are sufficiently tired of the record companies' b.s., that they've decided to sell their album directly, and to make it available via their website for download (or purchase of physical media). That's pretty impressive. What's even more radical about Radiohead's move is that they are charging on a "pay what you wish" scale. When a friend first told me about it, I didn't believe it, so I downloaded it for free. I'm not a Radiohead fan, but I'm sure a fan of their marketing tactics.



2. The RIAA sued an individual for file-sharing/downloading music illegally. They were probably mistaken in going after the one they sued. No one could prove that the alleged file-sharer was even the one who did the deed. But before we get into the analysis of this event, let's continue with the next one.
3. Madonna has signed a $120 million record deal. The deal is not with a major record company, but rather, with Live Nation—a concert promoter and ticket sales outfit. She walked away from Warner Brothers, when they wouldn't "step up" with a viable offer. Warner was the first major label to sign her.
4. The Writers Guild of America is on strike right now. The only issue they have with movie and television studios is back end profits on digital media sales. Everyone there is being somewhat forward-thinking in their understanding that there's real money in selling and broadcasting over the internet.

There's some commonality in the lessons we can learn from these recent events. There are hundreds of others which made the news this year, and in recent prior years, from which we can learn similar lessons.

How about these for starters?

- Myopia has little to do with your personal collection of hallucinogens. (Okay, that was an awful pun). There are many ways in which someone who could have profited from the above-mentioned events, chose to lose money, because they had tunnel-vision about how they sell intellectual property, and/or how the profits should be divided.

- Profit centers change. Some are so stuck to the old models /their old ideas about how to make money, and/or what makes money, that they eschew change, in favor of their "old faithful". This is nothing new.

Blacksmiths aren't making quite as good a living these days as they did before cars were commercially available. Those who loved being blacksmiths, and learned their trade weren't about to give it up. They probably had to focus on different audiences. That's one way to stay in business.

When VCRs first came out, the MPAA was against them. They said that home taping and viewing would mean the end of movies and movie theaters. You tell me: How are movies doing today? :) G'ahead...tell me. Say it. They're making a dollar or two, aren't they? And DVD sales? Not bad, ay? The studios know where the money is. That leads to the next point...and the next post.