Week 4 - Copyrights and Business Models

This was a pretty dry article. The background information on copyrights were interesting. The economic math in the middle was very dry and hard to follow in how it was written. The business models section was the best part.

I think there is a link between the story behind the initial US copyright laws and the piracy we see happening with digital media. Take the consumer as the US. The US saw the benefits of copyrighting, but also was a developing country and wanted the ability to steal/use ideas from the developed countries of Europe. The consumer understands that if her/his artist, film maker, author, etc. do not make money then they won't produce any new material, but the consumer wants to expand their collection, grow their interest, and test what is out there. I think if a consumer is a big enough fan, they will subsidize the costs of the illegal copies for the consumer who is testing out a new artist, author, etc. The artists who don't make it, probably wouldn't had made it if they were relying on all the lost sales to illegal downloads. Copies build a fan-base. Fan-bases will generate revenue through growth. If the growth isn't there, then the artist will fall. The artist needs to choose which business model or combination of models will work best for her/him. There will always be piracy on the internet (the article showed at least 20% in the highest per capita GDP countries), but the creative people who make the media consumers want will also have to be creative in how they get paid.