"Stealing" Records
spider_boris at The Claire Files Forums - my title. A revelation of the fact that, except for the most wildly successful groups, the musicians make no money on CDs or concerts. That money all goes to the recording companies and concert promoters. What the artists do make money on, is merchandise sold at concerts, e.g. band logo T-shirts. Don't know if it's true, but wouldn't surprise me. [clairefiles]
It isn't the songs or the movies themselves that are the product; they are just the advertising used to promote the real product - the merchandise. Distribution of songs/movies/etc via filesharing is simply far more efficient than distribution through CD or DVD sales - it cuts out the middleman of the record company or the movie distributors.
That is why the big record companies are so eager to label filesharing as piracy. If people buy into the record company assertions that filesharing=piracy, then the record companies stay in business. If people don't buy into their assertion, then the record companies go the way of the buggy-whip manufacturers.
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