Often in major changes in either production or distribution technology, there is a phase where supply and demand renegotiate a new price level agreement.
We all have a computer at home that we paid for, we all have our ISP account that we monthly pay for, with the router we paid for, and cables our society paid for from our taxes, and satellites our governments decided to put up there. “We” as global community paid for and developed and built a global digital network, that makes everything easier and faster and cheaper because there is no truck or airplane or shop-shelf, Sony and pals get to use all that free of charge, that makes their promotion and distribution also cheaper, faster, easier.
Sony and pals do use the digital distribution network but continued to charge shop-shelf prices. The abuse of the digital network as such is largely on the part of the music and movie industry.
To put it in perspective : if I sit outside a bar and some waiter comes and asks what i want to drink and gets my drinks and keeps an eye to see when my glass is empty and asks if i want something else or offers the daily lunch, i give the man a tip, 15% or more.
If the bar has no waiter, i dont pay a tip.
If companies charge shop-shelf price in a digital market, you can expect a wave of ‘hacking’ and illegal versions flooding the market, mainly due to dissatisfaction with the perceived overcharging by the suppliers. P2P-networks were the chosen platform for a while, or sites like YouTube. It continues until the market reaches a new price level agreement between supply and demand, or a new business model.
Steve Jobs finally introduced iTunes, 12 songs for 12 dollars, a completely legal digital distribution network. That is for music close to the old price level, just without the cost for the case, transport, and shop shelf (we are going to miss Steve Jobs).
