TEXT A The music industry, hurt
by a decline in CD sales and the continued free swapping of files on the
Internet, took the drastic action last week filing more than 250 lawsuits
against consumers. But whatever catharsis record executives and their lawyers
may feel, the courts cannot solve the music industry’ s fundamental problem. Nor
does the answer lie in getting people to pay for each music file they download
from the Internet. Instead of clinging to late-20th-century
distribution technologies, like the digital disk and the down loaded file, the
music business should move into the 21st century with a revamped business model
using innovative technology, several industry’s experts say. They want the music
industry to do unto the file swapping services what the services did unto the
music companies—eclipse them with better technology and superior customer
convenience. Their vision might be called "everywhere Internet
audio". Music fans instead of downloading files on KaZaA—whether they were using
computers, home stereos, radios or handheld devices—would have access to all
music the record companies hold in their vaults. Listeners could request that
any song be immediately streamed to them via the Internet. If
consumers could do this, the argument goes, they would have no interest in
amassing thousands of songs on their hard drives. There would be no "theft" of
music, because no one would bother to take possession of the song. To clinch
music fans’ loyalty to the new system, and make them willing to pay for it, the
music companies and the supporting industry would need to provide attractively
priced, easy-to-use services to give consumers full access to the hundreds of
thousands of songs available to them. Consumers could still ask
for song titles or artists, as they do now on KaZaA. But they could also, for
example request rock ’n’ roll tunes like Hat that appeared for more than three
weeks in Billboard’s Top 10 during the 1960’s. Or they could ask for early
1990’s guitarists that sound like Eric Clapton, or new artists similar in style
to Alanis Morissette. Requests could be intricate, like asking
for music subsequently recorded by the original members of the Lovin’s Spoonful.
Or they could be simple, like requesting light jazz for dinner-party background
music. The system would be interactive and could learn each user’s tastes. As
listeners voted thumbs up or down to tunes (should they choose to), the service
would amend their personal libraries accordingly. If it worked,
it would be as if we each had our own private satellite radio
channels—customizable collection of tunes for hundreds of millions of audiences
of one. It is a compelling business model, and the current music companies, as
the owners of the content, could be at the fore of the system. A
tiny taste of such an approach is available on Internet radio networks like
live365.com. On such services, listeners can essentially customize a radio
station to their individual tastes. But crucial to the future of everywhere
Internet audio, many believe, lies in widespread wireless Internet access,
because wireless means portability. "Wireless gives the record companies a
chance to do it all over again, and this time get it right," said Jim Griffin,
the former head of technology at Geffen Records and now the chief executive of
the music publisher Cherry Lane Digital. Mr. Griffin is also a founder of
pholist. org, home of an active online discussion of music’ s future on the
Internet. Many of the brightest industry insiders, academies,
lawyers, musicians, industry critics, broadcasters and venture capitalists
assemble at pholist.org daily to debate the music business beyond downloading.
Many say wireless holds the key. Myriad portable devices already offer Internet
access. Some, like the BlackBerry, maintain an always-on wireless Internet
connection. Some business-oriented devices, like the Palm Tungsten, now play
high-fidelity music in the MP3 format. Newer cellphones also offer MP3
functions, and include extra features like digital cameras and FM
radios. The seers once thought portable devices would connect to
the Internet via cellphone technology. But it now appears that Hi-Fi
hotspots—wireless Internet access hubs—may eventually provide blanket cover age
in urban areas and became the dominant means of connection. But there are big
obstacles to overcome. To make "everywhere Internet audio" profitable, the music
industry must develop a system to collect money from users and divide it fairly
among performers, song-writers and others involved in creating music. How this
would work is already causing hot debate. Mr. Griffin and many others in the
pholist.org discussion advocate an Internet fee that would create a revenue pool
to be distributed according to song popularity. Current recording industry sales
in the United States work out to about $2.50 a month per person.
As CD’s sales declined, a digital musical surcharge, or something similar,
could be assessed by Internet providers. At regular intervals, the industry
could sample what music is being streamed to users, to determine the
distribution of money to the responsible parties. By using sampling, as opposed
to detailed census techniques, listeners would not have to worry about invasions
of their privacy. This idea would turn the recording industry’s business model
upside down. Institutions are genetically averse to massive change. But the
payoff could be huge. Right now, for example, the industry incurs large costs
from its CD distribution model. The industry also has many intermediaries,
including distributors and promoters. To take a band from obscurity to
popularity is expensive, but that is what music labels must do if they want
shelf space at the record store. Recording companies are in constant quest of
superstars, because fewer than 10 percent of CDs released make a profit.
Revenues generated by the best sellers must try to cover the losses incurred by
less popular releases. In this context, the Internet could be a
godsend to musicians as well. It can distribute a digital copy of a song to a
few or to millions of listeners with virtually no cost difference. Music
companies would have more incentive to nurture minor artists. As a society and
culture, many argue, we would be much better served by such an
approach. Market forces alone would not produce such a system.
It would take enormous industry cooperation, which could only occur with
government approval, lest it be deemed a violation of antitrust laws. The need
for cooperation and leadership is clear. Children should not wind up in court
because they are fanatical about their favorite pop stars. If the music industry
devised an affordable, equitable, and convenient alternative to file sharing,
the fans would come, money in hand. According to the passage, music industry should ______.
A.continue free swapping of files on the Internet B.continue to use late-20th-century distribution technologies C.use more advanced technology and provide convenience to customers D.bring lawsuits against consumers for the music files they download from the Internet