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To: Starlight who wrote (8950)	1/5/2000 4:24:00 PM
From: Jon Stept	Read Replies (2) \| Respond to of 18366

RK111 and Elizabeth- Thank you for your response, and... I want to debate a couple issues that you followed up on from my post. Music has been move from lp to cassette, and now to CD. This did not precipitate any change on the music company... they distributed music the same way, on a different medium, but distribution the same way through stores. There is no incentive for the record companies to sell you their content that they can sell because their is no competition. You must get it from them. All the B-to-B and B-to-C cost effeciencies are coming about because of the competition within the retail, computer etc, industrys. If they don't do it, other companies will. But in a monopoly, which the record companies have, they hold the content and you must get it through the way they will sell it. There is a perception that internet distribution of music will result in cost effeciencies for the music companies. I don't think it matters to the record companies. The stores, the Tower Records, etc... they would benefit because they have the brick and mortar. The record companies don't have any brick and mortar. I mean, isn't like saying that Nabisco will now sell all their food online? Nabisco doesn't sell food to consumers, the supermarkets do. Is the suggestion that the music companies would sell their music directly to the customer? Is that realistic? Are there any examples of any music, software, publishing (purely electronic products) that sell directly to the consumer? I would expect a software company to be the first to do this as they tend to embrace and drive change and are in a very competitive industry, but not a 60 year old music cartel that has a monoply on content. I think the reason the music companies are getting involved with this at all is because of the licensing issue. Their music is being pirated and distributed over the internet, and they want to prevent that. They are being reluctantly being pulled into it, they aren't pushing it. Just my opinion, and I look forward to hearing from you. Jon :)