I wanted to weigh in on this MP3 thing.
My stance is that encryption techniques/secure digital distribution will never be accepted due to complexity and the level of control afforded the content providers. Kids are going to buy the devices and then deactivate the security features or they will shun devices with unmodifiable security features (read: Sony ATRAC3).
Having said that, I feel strongly that, first and foremost, the artists need to be able to make a living on the music they create. Copyrights need to be respected. The only way this will happen will be by offering content in an unrestricted fashion at a reasonalbe cost. The usual means of record production, promotion, video production, sales, distribution, touring, licensing of goods and services,... needs to be abandoned and reworked. I agree with some of the earlier posts here regarding production costs and delivering value to the consumer. I wanted to address the following specific problems...
1) Value to the consumer. Producing a whole CD with only 2 or perhaps 3 memorable songs is a waste of time and money. Nearly every CD I own has only a single or perhaps two songs that I would consider collectible. The rest is filler. In the old days you could buy a two record Elton John LP like "Goodbye Yellow Brick Road" and play it over and over and over again...all 4 sides. You'd spend time reading the liner notes, familiarizing yourself with group members and memorizing lyrics. Nowadays that value to the consumer is just not there. The record companies need to start thinking about releases of singles for individual downloads at a $2.00 or less price point if piracy is going to end.
2) Digging into the gold mine. Record companies need to start thinking about rereleasing classics in MP3 format for inexpensive download with price points of 99½ or less. They should realize that not everyone is excited about using software to "rip" a whole album collection. I would consider buying "The Best of Steve Miller" in mp3 format, or any other greatest hits album for that matter, rather than finding individual CD's and ripping each song by hand. The collection of music owned by the record companies could be recirculated for additional revenues to promote new bands.
3) Streamlining production expenses. The Internet needs to be exploited for promotion of new groups. The current system of promoting a group is antiquated and expensive. They need to open jukebox sites where one can listen to (lower) quality streaming audio before deciding to purchase. They need interactive chat rooms with groups, streaming audio concerts, streaming video interviews, videos,... for viewing and enjoyment over the Internet.
4) Public perception. The music companies need to reconstruct their relationship with the consumer. They need to consider opening up individual storage space for consumers where all purchased material can be stored and re-downloaded as needed by individual customers. They need to make the consumer feel some sense of permanency rather that make them feel like they need to download pirated songs in an illegal, clandestine fashion. BECAUSE, if the consumer is seen as an enemy and foe, treated like a criminal, and not allowed convenient access to content at a reasonable price the record industry will never make another penny. There will always be some underhanded way of getting back at the record moguls via black markets of distribution via the Internet.
5) Marketing of related products. The recording companies need to be inventive in selling related products such as hats, t-shirts, posters, magazines, memberships...over the Internet/ via Interative TV to the audience that logs into their site. They need to offer value-added materials like downloadable video montages in the form of mpeg or avi's for individual enjoyment, artist interviews, collectible liner notes (have you heard of Pokemon or Hello Kitty?)... They could probably sell a boat load of hand-signed, "limited edition" Ricky Martin (slightly used) underwear on the recording studio's version of Ebay.
It is going to be up to the record industry to take the lead and offer their hand in good faith. Brow beating the consumer is not going to work. Security features are not going to be accepted. Exorbitant costs will no longer be tolerated. Until these issues are resolved MP3 is just going to grow and grow and grow. There is nothing currently that could possibly curtail it.
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