<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Any real and successful business model requires a source of revenue at its core, that is created as a value proposition. The labels main source of revenue is CD unit sales by far. That is why it is important. If this was the 80's, it would be selling tapes. If if was 60/70's it would be vinyl. Every time the element you sell changes (value proposition), your model has to change as well. Without limited scarcity of the past, their model will have to change again.<BR><BR>You can't just "sell music". I think this is a major misconception. Music is a nebulous thing. The labels sell discs, not music and they have received most of their money from that. They market those disks using the music (it sounds weird but follow me). Rephrased, they sell disks by artificially limiting the music to those disks (which is the marketing). People won't buy the physical copy without the music obviously. <BR><BR>However, if people can get the music elsewhere (whether legal or not) easier, cheaper, and the way they want, why buy the disk. You have just lost the potency of your marketing, and you are left only with the benefits of selling physical media. The musical copy was the marketing for the disk sale, but if you remove the artificial limitation of the copy, there is little reason to buy the disk. That is why they are so focused on copyrights, and the "selling music" misconception. They believe they can get the laws to force people to buy again, by increasing their rights and forcing the artificial limitations. <BR><BR>But people increasingly don't want to purchase disks, because the marketing for the disk can be had for free, which is why they were in it in the first place. Especially when the music itself, once created, can be freely and easily distributed. The limitations of artificial copies seem dumb. And the labels are slowly finding it out now that it doesn't work, and is not a business model. The have lost the incentive for customers to purchase disks, which is why it is a failing business model. They were never selling music. The law cannot get people to buy. </div></BLOCKQUOTE><BR><BR><BR>You have an interesting view on what the music industry is selling, but I have to disagree. The Disk is the medium by which the music gets to you. The music is the product that's being sold. Same thing when they sell via a download via itunes and the like. No media but somebody is paying for the music.<BR><BR>I do think the source of money will change in some part ((maybe a large part)) from CD's to iTune like sales, but they are still selling music not a physical media as iTunes sells a rather large amount of product while offering no physical media.<BR><BR><BR><BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Of course. You will have to buy a musical instrument. You will have to buy the mics. You will have to buy a mac book if you don't want use another studio. Any artist will of course have the buy the scarcities. No different from painters still have to buy art supplies. That doesn't mean there aren't many free alternatives that artists have never had access to that technology has created that can reach an unheard of number of people. </div></BLOCKQUOTE><BR><BR>There is a difference in the cost ((by a huge amount)) between the instrument and what you need to do to distribute.<BR><BR>One can make music without distribution. It's pretty common in most business's/transactions for the consumer to pay for the distribution of the item ((in some way)).