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Our weekend guest Ben Werdmuller did a lively, provocative post on the issues raised by the recent Lily Allen file-sharing row. Several readers took the time to post equally trenchant comments. Ben’s own considered response to them (including his own uncle, Steve Monas..) follows:
On Sunday, Media140 published a blog post I’d written on Lily Allen and file sharing. I’ve been blown away by the quality of the response, and I thought I’d provide some further comment, as well as some further argument.
I received feedback from people in both the media and tech industries, and their replies were split along battle lines: tech people agreed with my arguments, while the people actually involved with creative intellectual property were deeply worried by my apparent argument in favour of illegal file sharing.
Mark Wilden, frontman for The Evenings, pointed out that my use of mainstream artists changing their business models is possibly a red herring.
The business models that apply to Prince, Madonna, Radiohead and The Beatles are in each case unique, and to quote them as examples of new business models is meaningless – no small band will have the clout to make a deal with a concert promoter that will allow them even to break even; no mainstream weekly newspaper will give a struggling band the favourable terms Prince will have managed to negotiate; and there is no act living or dead whose recorded catalogue is as valuable as that of the Beatles.
[…] We are not looking at a burgeoning cultural meritocracy. The signal-to-noise ratio of information on the internet is so low that for any band to get noticed it is essential that they have vast resources of time, energy and friends (rather than fans) to devote to maintenance of their online persona – or just cash to buy that kind of promotional coverage on the right blogs and music websites. In that respect, nothing has changed for artists’ benefit. Manufactured bands and pop groups are the record labels cash crop in this X-Factor age, now more than ever before, precisely because artists more concerned with creative integrity can’t rise above the crowd anymore.
Stephen Monas founded Business Affairs Inc, and is an active attorney in the Hollywood movie industry. (He’s also my uncle.) He, too, took issue with my arguments, and worried that the free sharing that had built up around music would translate to movies.
Belonging to that older, pre-internet generation, and trying to make my living from the business of producing and licensing intellectual property (in my case, motion pictures), I am deeply worried by any attempt to justify uncompensated file sharing as somehow idealistic or democratic.
[…] While it may seem that copyright is the invention of Big Business, created in order to restrict the flow of creativity and information, we should remember that the original purpose (in the US Constitution at least) was to encourage and protect the arts and artists. The underlying assumption was that if artists, musicians, filmmakers cannot control the use of their work, and are not adequately compensated for it, the arts themselves will be in danger of disappearing.
[…] So please let’s not dress this discussion up as anything other than how to survive and adapt to people’s inclination, and new-found ability, to get for free something that they used to have to pay for.
I think one thing needs to be made clear: stealing is stealing. I in no way wish to argue that unauthorised sharing of intellectual property is a good thing, nor that content must be given away. Although art has been created since the dawn of human civilization, I think Steve is right to imply that intellectual property holders must control the use of their work, and that they must be adequately compensated for it. Musicians, filmmakers and writers need to eat too.
However, after at least a decade without tangible participation from the media industries, illegal file sharing has become mainstream. Companies, rights holders, device manufacturers and digital distributors have been engaged in difficult and important conversations for that time, while file sharers, unencumbered with that responsibility, have gone right ahead and developed easier and easier ways to share content for free. If I want to watch Up, the Disney/Pixar film that’s still awaiting release here in the UK, I can download Vuze and be downloading it inside of five minutes. To beat file sharing, any business model has to beat that experience.
For five years, I was the technical lead and co-founder of an open source software platform (before going freelance earlier this year). Open source businesses typically freely license the intellectual property in their products, and make their money through support. However, ours was an idea first and a business second: it took us a couple of years to establish the company and commercial services, and there was an outcry when we did. A very prominent commentator in the field of educational software suggested we should be doing it for the love of it, neglecting the fact that if the team behind the software couldn’t raise the money to live, they would go and do something else. Because it had always been given away for free, some people were incensed that we would charge for services.
Turning digital media into a business model has the same kind of uphill battle to fight; Shawn Fanning opened the floodgates with Napster a full ten years ago, in 1999. To begin to do so, I believe the industry must do some very simple things:
One possible model would be to sell on file quality, as the Russian music store AllofMP3 did – bandwidth and storage being things that still fit a scarcity model. A movie or album could have a low-quality version (a lower bitrate, or mobile phone screen resolution) for a small amount of money, and ramp all the way up to a very high quality (extremely high fidelity music, or post-HD screen resolution) for more money. Either way, the files might be digitally watermarked to identify the purchaser, but any DRM restrictions would be removed, so that purchasers can use their downloads in the way that best suits them.
Another model might be subscriptions. Just as we have cable TV channels like HBO and Film4 now, why can’t I subscribe to a feed of interesting movies, albums and short films put together by the McSweeney’s team (as they’ve done with the excellent DVD magazine Wholphin), for example, or by those same cable channels? This takes advantage of current technology while using a tried and tested paid model: I don’t have to remember to set my PVR to record something that’s on at 9pm on Film4, so I don’t miss anything, but I’m happily paying $20 a month (or whatever). Companies like Netflix and LoveFilm are already stepping very close to this.
The point is, there is a model that will work, but it’s not the same one we were using ten years ago. There is money to be made, and artists will prevail, but the incumbent companies are going to have to adapt and change quickly.