| Great analysis! You've got to take into account the fact though that the labels don't give two poops about what they're doing to the services they're killing.
Spotify. MOG. Rdio. Hulu. They're all fronts to appease those of us that are interested in a different delivery route for our content. They're the proverbial pylon that the industry can point to and say "there, we tried to innovate, piracy is bad, killing us!" We talk about guaranteed failure of the labels and studios in the long run because of their pig-headed nature and their resistance to change - but they say "nay-nay".
They know that these short term gains will accomplish a few goals that will guarantee their business model for decades to come.
Paying their lobbyists to run up to capital hill and enact new favorable legislation... If we've learned anything, having power is the key to business, not a good idea or a steady execution.
Once you get to a certain point you're immune to the regular rules of market dynamics. Just as the banks before them, we're currently seeing legislation being put forward to protect a broken, legacy, business model by ensuring a monopoly for a select few, and stifling innovation for many. And just as the financially misguided before us, the people in black suits will soon be coming to take our homes, or in this case, our domains. |