Executives grapple with Grokster ruling

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A rock and a hard place

---No, the Studios are greedy no doubt, but they will not go
down the only customer hole. The copyright is guarenteed
income wally world can't chisel away with the China lever. If you
had a product, would you sign a deal with Walmart as your only
customer, and be at their mercy? I wouldn't. I would come up
with products people are willing to pay for sold thru other
outlets. After all rich people buy stuff also. Just getting the
money back from them. Walmart makes MS look like Santa
Klaus.---

I agree with you, but Walmart has been wildly successful with
their strategy. Companies are thrilled when Walmart offers to
sell their products because it means a massive increase in
revenues as they are the top retailer in the country. Because
Walmart sells so much, they end up accounting for a huge
portion of that company's business. At that point, Walmart has
them over a barrel--do Walmart's bidding or lose the majority of
your sales. This is especially the case for cds, as Walmart
doesn't make nearly as much profit from them as they do from
other products (DVDs for example). So Walmart can walk away
from selling cds with no real loss. If the RIAA companies choose
to walk away from Walmart, that means they have to make up
20% of their business elsewhere. Most companies end up giving
in to Walmart's demands, but cut their costs of manufacturing
by making cheaper, poorer quality products.

As far as finding other outlets, that's exactly what I'm suggesting
the RIAA do, especially through pay-for-p2p networks.

Posted by: tic swayback   Posted on: 06/30/05 You are currently: a Guest | Members login | Terms of Use

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