Friday, June 17, 2011

The More Music You Share, The More Music You Buy?

We've seen a bunch of studies like this in the past as well, but here's yet another report claiming that the more people share music, the more music they buy. Now, there are some caveats here. The report is done by a company that's trying to build a business around "legal music sharing," so it's a biased party. Also, its methodology is not particularly clear. So, even though it supports what plenty of other (more complete and open) studies have said, I'd at least take this one with a grain of salt.

Of course, there are some conflating factors in all of this. It wouldn't surprise me at all if some of the biggest file sharers are also some of the biggest music buyers, since they're often the biggest music fans. However, it would be wrong to then assume that because such people buy "more," it means that they buy more than they would have otherwise. That point has not been shown by studies. It may be true for some and probably is not true for many. However, what it does clearly suggest is that these file sharers are happy to pay for things when it makes sense. Once again, this reinforces the key point we've made before, that this is a business model challenge. These are underserved customers who are willing to buy, if the offer is reasonable.

Once you realize that, you quickly recognize the sheer pointlessness of the RIAA's strategy over the past decade plus. Rather than treating these people as underserved customers, who could be better served with better offerings, they instead treat them like criminals. That pushes them away, rather than making the more likely to buy anything. It's really amazing that the RIAA and the big record labels still haven't figured this simple point out.

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