The battle rages on, record companies vs. MP3. We think that consumers will be right -MP3's.
MP3's are here to stay. People that have used MP3's love them. They are much more convienient than CD's and last longer than CD's because the hard drives that MP3's are stored on are not subject to the personal handling that CD's get. Like most people, I was taught that the customer is always right and you should work for the customer. Someone needs to tell record executives this, because many just don't get it. If customers want MP3's, why don't you give it to them instead of ignoring it. The way things are headed now is a road to piracy because record companies have failed to meet customer demands. Instead of putting out MP3's, many companies are trying to used another format: (Liquid Audio). Liquid Audio is supposed to prevent copying. However, it is failing to catch on and many people don't understand what it is. Everyone knows MP3's, though. Many record companies are applying prices that aren't reasonable as well. Storing music in an MP3 format costs almost nothing. CD's have to be manufactured and distributed which costs a great deal more money. Yet, the prices for MP3 albums sold are ridiculusely high. I took a look at liquid audios website and they are selling downloadable songs for $1.62 for each track. So, for an entire album it would cost over $10! That is very high for something that is basically pure profit. Record companies aren't very profitable, and with CD's, most artists end up making only $1 for each CD sold, and the record comanies probably don't do too much better. However, a album sold in an MP3 format for $5 or less would be more profitable than CD's for both parties because it costs next to nothing to put on the internet. Competing by offerring a downloads for each song individually today will probably be a lossing battle because you can get them for free on Napster and they add no more value than the music you can get at Napster. Right now most music is still sold in a CD format because download speeds for most internet users is too slow to download a full album in reasonable time. Internet speeds are growing very fast, now, however with high speed cable modem access and DSL (Digital Subscriber Line). Within a few years most of the US will probably be connected to these services and there will be a demand for downloading full length albums. Right now, record companies seem to be fighting MP3s and they are trying to force CD's down people's throats and are trying to hold on to CD's as long as possible. After high speed internet access becomes widely used, though, music companies could become more profitable than ever. Many people think that record companies are doomed to fail. I think otherwise. If record companies listen to customers now, within a few years, they could start profiting greatly. By allowing users to download full length albums for a small price, users would get good quality albums that are not subquality or cut short as Napster users typically get. Also, the people that download could also be given membership priveledges to the artists websites where they will be able to keep up with the latest news and album info on that particular band. And, there is even the possibility to offer discounts on concert tickets as well for downloading albums. These downloads will most likely be more than just MP3s and will offer lyrics and pictures like the typical CD has. The value that these things and the fact that it will be legal may convince many to get there music from record companies instead of stealing it.
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