Version: 2008

Comments on: Piracy as a core business strategy

Could piracy be a key differentiator in driving a band's success?

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by Penguinisto August 28, 2008 10:50 AM PDT
This was Microsoft's entire Raison d' Etre for Windows marketing, and not just in China. I'm willing to wager that if you had a professional survey of folks who have ever used Windows 3.1 in the US or EU, nearly half of them would (if honest) answer that they got a copy of it from a friend/family-member/work/etc.
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by Steve Jordan August 28, 2008 10:56 AM PDT
It's not "piracy" when the owner wants the product to be taken... it's a "freebie," and yes, it's a time-honored business strategy. But the producer still has to make money, and once they have created a consumer base with their freebies, they generally stop giving the freebie away, or they promptly sell something else to the consumers they've pulled in. Close examination of the "pirate" business strategy has revealed exactly this phenomenon, as well as the fact that the most altruistic of "pirates" become dyed-in-the-wool Capitalists the first chance they get to see the real $$$.
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by Pete Bardo August 28, 2008 11:05 AM PDT
In the music business, piracy is the sincerest form of flattery. But it's not piracy if you/re giving it away.
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by dascha1 August 28, 2008 11:08 AM PDT
Xerox loved this kind of model. And its clients adapted to that way of thinking, like Disney, probably wouldn't be where they are historically to not copy for productivity behind-the-scenes. On the other hand, shoplifting is a serious crime. At the end of the day you have to make a decision. You can't whack the horse for dangling a carrot in front of it, that would be torture to most folks.
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by Magicland August 28, 2008 11:47 AM PDT
Okay Matt, you've got my vote for RIAA president. Piracy is the guy in the flea market selling copies of DVD's and CD's, and his suppliers. PROMOTION is when people freely distribute media which increases an artists reach and/or notoriety. When the record companies realize this and stop spending billions on busting kids and grandmas, maybe they can make some money again, if the artists haven't bypassed them completely by then. After all, who needs a bloodsucking middle-man taking most of your profits? Face it, with digital distribution, there's more profits for both the distributor and the artists, no eco-unfriendly media, and everybody (except the current recording industry) wins.
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by The_Decider August 28, 2008 6:19 PM PDT
It works for Google.
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by The_Decider August 28, 2008 6:23 PM PDT
It worked very well for Metallica. In the days from before Kill 'em all to around Master of Puppets, Metallica thrived and encourage tape trading. It was only when they sold out and turned to pop that they started to care.

Microsoft built themselves on piracy as well. They used to (at least implicitly) encourage piracy, it was only when, like Metallica, became irrelevant that they started to complain and act in an extremely hostile manner towards their paying customers.

Come to think of it, they are very similar despite the obvious differences.The only difference in the rise and fall of both Metallica and MS is that Metallica used to do good work.
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by DCOriole August 29, 2008 7:57 AM PDT
Since the current business model works ONLY for the recording companies, small bands have never benefited from anything but touring. Downloads benefit the musicians--which is the real reason RIAA is against them.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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