Many retail experts believe that unauthorized file-sharing would decrease if music downloads were priced lower and AmieStreet's dynamic pricing model is one solution. "Community-driven pricing is an effective model for maximizing digital sales,” said Bob Morelli, President of RED. “But Amie Street is exciting precisely because it's more than just a new e-commerce model. It's a new music destination that is social, dynamic, and an engaging experience. It will be an important marketing platform for our labels and artists.”
Acknowledging the elephant in the room.
COMMENTARY: Almost daily I receive news of a deals between a distributor or record label and a music startup. But even as I report the news as exciting proof that a new music industry is finally taking shape, I am also reminded of how many of these deals are made only by ignoring fundamental legal obligations to rightsholders
From ad supported services like imeem and Spotify to radically new models like AmieStreet, the elephant in room is the statutory and contractual obligation that the labels making these deals have to songwriters and artists.
RED and their parent company Sony deserve credit for their early involvement with AmieStreet. But someone needs to start a serious conversation about changing the royalty system to fit the new realities rather than pretending that we don't have a problem. Perhaps the mighty Sony Corp. is the just the company to do it.
