Posts Tagged ‘share media’

Record labels now wish to encourage MP3 sharing

December 19, 2007 Leave a comment

At last it would seem that common sense has come home to roost, and we even suggested this eventuality in a previous posting right here on this blog. Don’t you just love it when these predictions come true?

A recent Slashdot article reported that the big four record companies (Warner, SonyBMG, EMI and Universal) have now signed deals with, a social networking destination where users share media content, in return for a share of advertising revenue. Unfortunately however, this may be a severe case of too little, too late for the labels in view of the ongoing downturn and resulting job cuts.

So, how will this play out and who will be the winners and losers in the unfolding scenario going forward? As usual, I’d like to make a prediction using my stakes pie chart, (P.S. based on recent feedback, I must re-iterate that the stakes pie chart only reflects my individual opinion). So here goes:

MP3 File Sharing

Disclaimer: The above ‘Stakes Pie’ chart is intended only to convey an individual opinion

And the winners are:

  • Commercial Stakeholders – Record labels (ad revenue and increased circulation), Social Networking Websites (increased traffic / usage -> more ad value / revenue)
  • Creative Stakeholders – Increased exposure to consumers
  • Consumer Stakeholders – Increased choice and less restrictions

Comments most welcome.