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- Not quite correct on that!
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The studio spends a certain amount in producing the album and creates a master disk. The disk is sent out to be stamped (roughly $1.00 per disk, possibly less), graphics and packaging eat up another dollar (maybe). Then you have marketing and promotions costs, concerts, etc. That is all fine, but you are still bound by a couple of factors as to the price and final retail product, etc.
You forget that companies like Walmart can tell the record production company what to edit in order top be found on the shelves. They will set a price as they see fit, driving down the costs to the consumer and placing increased pressure on their competitors (K-Mart was forced to merge with Sears in order to survive, both are ailing). This means that he retail outlet has some ability to exert some pressure on the supplier (record companies, movie production companies). The larger retail outlets crush the smaller outlets, such that there are fewer of them and they also have less negotiating power (if Walmart sells x at some price?).
With P2P, you have the problem of the peers are working off of hash tables (currently) and there is no centralized host to shut down. This is an issue that the production houses have to deal with. Yet another issue is that the increased bandwidth will allow the transactions to take place in less time (if an album is roughly 650MB and the pipe (connection) is 100MB/s, that means you have less than 10 seconds to trace an album download and even less time to track an individual track of music. If a DVD is 9.4GB, the content is roughly 4GB and the if the pipe is 100MB, this still is not an awful long time to tract the transaction. Ths is one of the things that the MPAA and RIAA are concerned with. - Posted by: B.O.F.H. Posted on: 11/18/04 You are currently: a Guest | Members login | Terms of Use
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