When you look at the big picture of marketing music and selling it to the mass audience there are so many things to consider. It seems to make sense that online companies such as Netflix would profit better from certain movies than chain stores since Netflix operates out of what I can assume to be one hub, while Blockbuster has to have centers all over the country. What is wrong with the bigger picture is greed I believe.
Anderson mentions that the record company has to charge 65 cents per song to the whole seller in order to make up for lost profits because the consumer will likely not buy the entire album. I think that is the old way of thinking for the record company. I would think as a producer of music you would consider the fact that fans of a band may only buy a few songs, so why in the end produce an entire album. Sure there are die hard music fans that will want it. But why not just put out a few songs, see how those do, and then if it does well go back out and produce an entire album? I’m just a little confused by that. It’s almost like television stations remembering the good ole days of advertising revenue in the 1980’s. I think they still look back on that business model and think we need to generate money like we did back then.
While the article talks about taking online music for free being a gamble that is true in a sense. Sure it takes more time since you will likely download a song that sounds like someone recorded it off the radio. But if you take the time to download 2 or 3 versions of that song you will likely find one that sounds right off the CD. Of course if you get caught I’m sure it wouldn’t be worth it.
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I enjoyed Kate's post. It brought me back to the Netflix business model (check out this month's Wired.com for a cool article on the 'Netflix Black Box.'), which is not just a single hub but a sprawling engagement of smaller movie houses. Essentially, most large urban areas have at least one central storing house where rented movies are sent to and out of, making the dynamics of the model (quick turnaround) nearly unbeatable. It's a unique model really only rivaled by Red Box.
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