I recently read an article that proposed a sort of "tax" to prevent the illegal downloading of music online. Optimistic and knowledgeable as the author sounds while he's throwing out "facts" and "figures," the idea is just downright wrong. Here, I will try to devise my own system for coping with the problems the Internet poses to the music industry.
We all know that it's fairly simple to download copyrighted material from the Internet. Whether it's from a torrent tracker or from some other peer-to-peer application such as Limewire, it's usually a simple process to find your favorite song and grab it from someone else without paying for it.
There is a right way and a wrong way to deal with the problems this causes.
The wrong way would be to pick on college students at random and ream them with exorbitant fines for a relatively small amount of downloaded material. It's no secret that for quite some time now, the RIAA has been taking these "pirates" to court and zapping them with fees that are all but impossible to pay, then hoping that everybody just gets scared for a while and doesn't download anything illegally. Once the effect of the billion-dollar-fine scare wears off, the process cycles invariably at least once every year.
RIAA, this is wrong. Trying to bully the public into compliance with your obsolete business model doesn't change the fact that your business model is obsolete. It's a simple fact of life that most people will download music from the Internet illegally at some point. The only question is "when and how much".
To deal with piracy, the entire business model has to change to one that is not only up with the times, but ahead of the times entirely. As an industry, all major record labels should band together to create a new system for digital content distribution. We all know that Apple has had a choke-hold on the digital music distribution market for a very long time, but they've also been doing it incorrectly. Often, the price of a physical copy of an album on CD is the same as (and sometimes less than) the cost of the lesser-quality digital download available in the iTunes Store. Owning a hard copy of an album on CD eliminates many problems that come with buying music from iTunes (and many other digital retailers), such as the issue of a computer or hard drive failure leading to data loss, but primarily, the issue at hand is one of quality inferiority.
As some know, the audio quality of a song or album downloaded from the iTunes Store is vastly inferior to the quality of a lossless audio recording purchased on a Compact Disc or a Gramophone vinyl record. To be ahead of the game, not only should major record labels position themselves to compete with retailers like iTunes in terms of price, but they should offer a lossless download of an album, an exact copy of the original disc, for the price of the CD, less the cost of the physical production and distribution of the disc(s). Audiophiles would go nuts.
Take, for example, the Dave Matthews Band. In their webstore, you can purchase certain releases from them in a variety of formats. These formats range in price in accordance with the audio quality: low quality mp3 files are cheaper than lossless FLAC files. A business model like this in which record labels do business directly with the public would not only be a good means of ensuring the delivery of high quality audio content to the person who is paying hard-earned money for an audio recording, but by setting up a webstore on a per label basis, it would draw attention away from third-party retailers (Amazon, iTunes, Walmart) and towards the label itself.
The next step in keeping consumers away from peer-to-peer networks and getting them back into the habit of purchasing music? Low, low prices. Could you imagine a world where a consumer could buy an album for a flat fee as low as $5.00 (depending of course on the format)? I certainly could. Imagine a standardized content delivery system (sort of like iTunes) that is sponsored and run directly by representatives from each label that wants to partake in said system. Without dealing with any middle men, the labels could do business directly with their customers and offer competitive, digital-only pricing. For instance:
For the first year after its release, an album would be available in 192kbps CBR MP3 (high quality) format for $5.00, V0 VBR/320kbps CBR MP3 (higher quality) format for $5.50, and a FLAC+CUE (highest quality) download for $6.00.
After the first year, an album would be available in 192kbps CBR MP3 (high quality) format for $4.00, V0 VBR/320kbps CBR MP3 (higher quality) format for $4.50, and a FLAC+CUE (highest quality) download for $5.00.
Without the cost of manufacturing and distributing a physical disc, audiophiles could receive an exact copy of the original album for five or six measly bucks (of pure profit) and most other music lovers could get a lesser-quality version for four to five bucks (again, pure profit to the label). From there, the money could be distributed amongst the label as necessary.
Of course, this would not completely eliminate the need for CDs and Vinyl, so conventional retailers would still be able to serve up hard copies of the music at their regular, on-disc prices.
To eliminate the naysayers who still subscribe to the "try before you buy" mentality, allow customers to upgrade their account with the service for $1.00/month which would allow them to stream any album they want to up to three times before committing to buy it (for $5 bucks!). Without introducing ridiculous DRM-based restrictions, you give the consumer the ability to listen to an entire album enough to decide whether or not it's worth purchasing, and then you give them the freedom to purchase the album directly from the label in a variety of decent- to high-quality formats for a very low price.
While the prices look very low and unsustainable on paper, a deal like this would likely entice many would-be pirates to simply use this service to preview the music they want to preview, promoting artist discovery, and then buy it once they decide they like it (or pass on it if they decide they don't), since multiple studies have now shown that regular pirates are very likely to purchase the music they download if they like it.
I'm sure there would be some initial kinks that would need to be worked out, and perhaps my idea of a pricing scheme is simply ludicrous, but as a pirate myself, I know that a system like this would definitely draw my attention, and I'd probably be the most loyal customer.



