This is nothing more than a thinly-disguised allegory about piracy in the music industry. There are several big differences between the music and the software industry which I won't go into, except to say that: even taking this story at face value, for the developers to then start suing everyone downloading the fake copies of the app would still be a huge dick move.
From a business/industry perspective (ignoring for now the ethics of piracy or the wisdom of combating it with mass lawsuits), the biggest difference between digital software and digital music is that lots of software providers are still providing value from distribution.
Especially with database-driven apps and SaaS products, distribution (hosting) is still most of what you're paying for. If someone leaked the back end source code for Github or Dropbox, of course there would be people who would host them for themselves and avoid paying, but I can't imagine it would cut into their revenues at all.
But with music, as soon as it's released in a digital format, anyone with an internet connection has near-frictionless access—the music creators are no longer offering any value from distribution other than the convenience of online stores like iTunes or the artwork and collectibility of a physical CD. The music industry and smaller musical groups/labels are certainly figuring this out, and experimenting with ways of offering something of value. Removing DRM was a big win because DRM did nothing except ruin the supposed convenience of online purchases. Cloud and subscription services (both pay and ad-supported) offer convenience and even better immediate availability than piracy.
I really enjoy the ease at which I can buy things on an app store (The music industry has/had problems because they try/tried to control the sales process).
The development community has a great solution: app stores. But these only work if the people who run the app stores are willing to help protect the products of those who sell in that store. I think this is what the post is mostly about (and has little to do with the music industry).
To pirate work on the net... Whatever.
To pirate work by placing it in the same app store that your product is sold. That is just messed up.
Further, what is the message of the allegory supposed to be?
The analogy between music and tech suggests that the two hits-based industries selling digital goods are not so different after all. But why would our morality in one case be so different from the other case?
If anything, this allegory seems to suggest to me that the recording industry has committed one of the biggest public relations bungles of our lifetimes. People who wouldn't think to pirate a mobile app would pirate music without a second thought thanks to widespread lawsuits, pay-for-play, price fixing, and of course, ease.
From the tone, it seems that this is sarcasm and the author's point is against music piracy. Despite the seething tone of a few sentences, the points he make sarcastically are actually decent points. From sentence to sentence, I go from being convinced that he's trying to be against music piracy to being convinced of the opposite. When he says
> They tell you your business model is broken. You should make money some other way. Maybe you should sell t-shirts with your company’s name on them, or put on events of some kind and charge for tickets. That’s where the real money is. Paid apps are a thing of the past, they say.
I can't help but think, Yeah, I actually do think that. Like it or not, distribution of quality media was a big part of the value provided by the music industry before the digital age and the internet. I'm not making an argument for or against the ethics of the piracy itself, but I think music producers (both big studios and "little guys") are unwise to rely on legislation and lawsuits to protect their business.
The only argument for getting paid in this article is that sweat deserves a return.
That was Marx's labor theory of value. Marx was wrong.
You deserve a return only when you efficiently meet someone else's needs. The secret to economic success is not sweat, but creative sloth.
We measure value against the cost of substitutes, and other people already entertain me for free (without piracy).
Maybe entertainment just isn't a hard problem. Maybe the bottom 99% of entertainers are basically tagging cat pictures. Maybe we shouldn't encourage them.
I guess if you're an app dev, and want to learn one thing from the music industry, I'd find a way to connect with fans and give them a reason to buy: http://creativecommons.org/weblog/entry/12695
Then look for ways to be creatively lazy, and make sure your app can't be replaced by going for a walk on a spring day.
I really don't care if teenagers with no money run a free copy of my stuff. They weren't going to buy it anyway - and now they're out there increasing its penetration. From a business perspective, it's often a win if you stop fallaciously calculating every illegitimate copy as a loss of the sticker price. From a strictly personal standpoint, I take it as a compliment that they like it enough to go to the trouble.
"it's often a win if you stop fallaciously calculating every illegitimate copy as a loss of the sticker price."
This really depends on how you define loss.
In a standard legitimate sale of a product, there is a bidirectional exchange of value -- the customer submits currency whose total value is equivalent to the value requested for the product being purchased. Simultaneously, for submitting the currency of that value, the customer receives a product of that value. (We'll assume the price is totally fair and equivalent to value at this point, but even if it's not the price presumably still includes the true value of the product, if not more)
In an illegitimate transaction -- literal theft, in this case -- the criminal customer forcibly receives the product, exchanging nothing of value in return to the merchant or the producer of the product. In this case, there is no question of loss; the customer has received something with inherent value and given no value.
In the illegitimate transaction of piracy, the end result is the same as theft with the sole exception that the original product has not been "lost" in the traditional sense of the word -- however, the criminal customer has still received a product of value and exchanged nothing at all, much less the value of the product.
Now, regardless of which of these three transactions has taken place for your product, I am presuming that your product had a significant cost to develop -- unless, of course, all of your tools were free, you had no expenses at all and you regard your time as totally worthless, in which case all income from the product is profit. I submit to you, then, that if your costs in developing your product surpass the value you received for it, yet the value you received for it is, itself, surpassed by the value of the product "in the wild" -- e.g. you have sold $450 worth of software, yet there are $750 worth of copies of it total being enjoyed by people (purchased & pirated combined) (100% arbitrary numbers), and the cost to develop the product was around $1500 -- then you have certainly incurred a loss on the sole basis that you have not received enough value to cover your costs.
The standard rebuttal to this is the tried-and-true "but they would not have purchased my product anyway." Perhaps this is true -- however, I would consider this irrelevant. Under normal, legitimate economic circumstances, the purchase of a product is the only way to attain it; therefore, if they would not have purchased the product anyway, they wouldn't have the product. In this case, they have not purchased the product, but they do have it and enjoy its use, and you have received no value in return for it despite having put value into it.
However, assuming the value received for the product exceeds the costs of producing it, but the value of the product "in the wild" as mentioned above still exceeds the value received... perhaps "loss" is less correct in this instance, but you are still lacking the total value that under normal circumstances you should have received. What would you call that?
In any case, I am not sure how it is fallacious to call a product of value obtained illegitimately (one way or another) for free a loss to the product's producer.
What is the moral of this story? "I'm an App Developer, therefore I shouldn't pirate music"?
Ultimately, piracy breaks down to "people want your stuff, but you've priced it too highly". In the case of apps, that's all it is. In the case of music, it's a little different. Music is cheap, but it's rare that you can get it in a good format: everything is lossy, and for people with good audio kit and good hearing, that makes the music unusable. Therefore, people that both Want It Now and want full quality are going to download the FLAC torrent rather than buy lossy MP3s. (They won't buy the CD because it takes too long for the mailman to deliver it.)
The same goes for movies and TV. Nobody will sell you those things without DRM, so if you use Linux exclusively, you have no option but to pirate the content. Make every TV show a standard non-DRM'd HTTP download for a buck, and piracy (among people with money) evaporates instantly. But the content producers want a bogeyman to blame for all their problems, so they intentionally keep piracy alive.
(If there were no such thing as the ability to pirate movies, people still wouldn't have bought the 88th redo of Star Wars. We liked it the first time. But it's easier for Lucas to blame the evil greedy pirates than his evil greedy self.)
I would be willing to be 100 downloads of my app that price isn't really the issue on music piracy. If you charged $0.10 per song, it wouldn't result in a massive sales increase. The barrier to paid downloads is that people have to use a credit/debit card, usually register somehow and other things that form a barrier to entry. I think $0.99 isn't much to pay for a song or an app, but there are people (a fairly sizable number) who just want to download without going through the presumed hassle of the payment process. I bet if you were giving away CDs outside of the mall and charged $0.25, people wouldn't think twice about tossing a quarter into the can. Take that same song and put it online and the same people happy to toss you the quarter would rather steal the song than process a payment of 25 cents.
The problem isn't price -- it's the barrier of payment.
Who determines what is priced 'too highly'? Also, do people have a right to content/things created and sold by others? Whatever happened to going without? If we were talking about clean water, I can get behind saying every person has a right to it.. but with rights comes duties.. though when it comes to the latest TV shows and other things I must admit I'm a little indifferent. An example is here in Australia for the longest time for seemingly arbitrary reasons we've always been very 'behind' America when it comes to showing new episodes of TV shows so many people say that's the reason why they 'pirate' TV shows. Why can't they just wait? Once again, if it was water there is a certain amount of possible time they could wait but when it's the latest episode of House..
Ultimately I would say piracy usually breaks down to people wanting things for free. If we stop looking in our inside circles (Enthusiasts, developers, etc—the 'enlightened') and then look outside at the mythical average man, or, the masses.
Recently someone in my Facebook feed made a comment about loving BitTorrent (Hey, at least he and others are moving on from Limewire) because he could get movies for free. This comment had a few 'lol awsome' words in it. Also, think of how people latch onto "GET RICH QUICK" schemes, late-night ads promising amazing abs at minimal work, etc.
Hell, consider myself too. Back in high school I would pirate a lot of games and finish them. Why? Because I wanted them and didn't always have the money. Note: Throughout my life I've also purchased a ton of games starting back with Hocus Pocus, Raptor and Warcraft. ;) I've long since stopped and now if I want to play a videogame I will either buy it or go without. Take Portal 2 for example, I've been more carefully budgeting my money and am yet to buy it. I haven't died, yet!
I think audiophiles who can't stand mp3s are a pretty minuscule part of the pirating population and not much to hang your argument on. The vast majority of people who are pirating music and movies just don't want to pay for it.
If you look at the history of smartphone development, you'll find a better analogy.
You see, back in the '00s, it used to be common knowledge that "nobody pays for third-party smartphone apps". It was scientifically proved over and over again, on platforms like Symbian and Palm, by research after research. You see, back then getting hold of a mobile app was relatively hard; you had to go hunting for it online, find it in some sort of online directory, pay tens or hundreds to the directory (which was also trying to sell you some other crap like proprietary downloaders etc or spamming you or generally treating you -- and developers! --- like shit). The market was tiny and tech-savvy, and resented having to pay so much for small add-ons, often of dubious quality.
Then came the Apple AppStore, and lo, all of a sudden people were paying for apps! Why? Because the ease of purchase and lower prices dramatically enlarged the market to people who simply couldn't be bothered to jailbreak and pirate just to save a few quid, or wanted to support authors. The pirate market didn't disappear, but mobile developers flourished nonetheless.
Now replace apps for music, and good streaming services for the AppStore, and I think you can see where things are going: consumers wants a simple and immediate buying experience where they don't feel like they're being ripped off by third parties (even though he still is, by Apple) and with low prices. Give them that, and they're quite happy to pay; try to force them into digital slavery, and they'll resort to the black market.
Now, guess what the music industry tried to do for the last 15 years.
"Digital Slavery"? We're talking about owning, or not owning an MP3. Going without it is hardly slavery.
It is really very simple. If someone feels the price an artists asks for their songs is too much, or feels that obtaining a copy legally is too much "work", then they don't need to have a copy. They're not entitled to it for any reason whatsoever.
They should have done some research before creating the app and changed their business model accordingly (yes I know it is supposed to be a parody).
I think the way to approach the issue is to think what does the population want, because the population elects the government which then makes the law.
Since people are copying music, obviously they want free music. But they also want music. The question is, if copying was legal, would music go away (or decline)? I think for a lot of art forms it is obviously not so. People will create art no matter what, as has been shown over the centuries. Even today, getting rich probably should not be your first motivation when forming a band.
It becomes a problem with art that is very expensive to produce, like movies and computer games. I think part of the solution will be to move those things into Kickstarter mode, that is, make people pay in advance for their creation. In the same vein of course it should be easy to pay people after the creation. Already a lot of people seem to be willing to do so.
This I think also has some precedence in history, when artists typically had some sponsor.
Also of course technology will make those things cheaper to produce too - in the future it will be possible to simply add actors to your movie with a mouse click. Computers could simulate Tom Hanks, Marylin Monroe or whomever you desire them to simulate. Already today it is probably quite cheap to create the scenery in movies.
I didn't recognize it as an allegory until halfway through, because jailbroken iPhones already have a very comprehensive free-cracked-app store, and I can only assume Android users have way more options.
Is this one of the reasons games are all going free+in-app downloads? What's the actual state of mobile app piracy today? It seems like many mobile developers are already moving to alternative models not involving direct sales, whether that's a subscription, virtual goods, or pay-for-addons/upgrades.
I'd have thought that it wouldn't be significantly different to crack the in-app content and provide that for free as well, or even repackaged into the original app.
About the only thing that I can think that will defend against this is a streaming/always online service that actively requires cooperation from a server as part of its implementation. Any offline licensing system can and most likely will be cracked eventually, until you end up with the equivalent of CD-keys and server-side detection of duplicates or invalid ones. Even then, if you're only using the remote end for license validation, that code can just be removed - the most viable models are either streaming content (in a way that can't be batched and rehosted/provided locally), or offering compelling multi-player / shared online features that require a valid auth token.
I must be missing something really obvious here. I haven't used Earbits, but as a streaming service, why not enforce things like this server-side, rather than trying to suppress pirates from distributing the cracked client app?
(No victim-blaming or other moral subtext intended. Just curious.)
The ideas inherent in selling any form of IP are not sustainable. Our economics are traditionally based on finite resources - and economics involving sale of intellectual property allows an infinite number of transactions.
In my opinion, we can not expect to make money from the straightforward sale of any form of IP for much longer. New models are being developed and services industries are adapting to offer the value that's traditionally been disseminated through IP sale .. this is where the future is heading.
The bleating, repetitive carrion-call of the old guard is becoming increasingly annoying. While their incentive seems obvious; the fact that these organisations are unable to innovate is even more blatant.
"Our economics are traditionally based on finite resources"
The finite resources aren't the final product, but the work that goes into it. Create Adobe Photoshop for me (not copy, but build from scratch).
"this is where the future is heading"
I no longer write applications. Everything I release is a service. In the past, there would have only been a one-time fee for my work, but now everyone needs to pay a monthly fee for it.
This is the result of piracy: monthly fees for everything.
It has nothing to do with not being able to innovate. Coming up with new music that people want is itself innovation, and people should be compensated if you would like them to keep innovating in that way. You can argue otherwise, but all it leads to is people not being able to afford to create those works anymore, or only being able to do them outside of their normal job, and therefore never achieving their full potential, despite creating something that has mass appeal. If you think defending a world where great creative minds are compensated enough to bring more, great art to the masses is increasingly annoying, I suspect you'll get what you deserve in the form of more Rebecca Blacks.
I pirated some music today[0]. I went to my usual shops to try to buy it, and for some reason the label had explicitly decided not to offer downloads of any sort. Just vinyl and CD. I wanted it now, and I couldn't really be arsed with those choices, so I stole it.
What would an honest Android-app allegory for this be? Perhaps a consumer is faced with these options:
1. An official shop, which accepts money (yay!), gives only some (boo!) of it to the artist, and offers:
a. The source code to build the app (i.e. a plastic disc that you have to rip yourself)
b. maybe, sometimes, a version of the app compiled for a 320x480 screen (acceptable lossy compressed files)
c. maybe, even fewer times, a version of the app compiled to use any screen size (lossless files, or high-quality lossy or whatever you like)
2. A dodgy (boo!) pirate site, which doesn't accept money (boo!), and offers all of the compiled versions.
Of course this is not even close to reality. No Android apps are compiled by normal end users. All paid Android apps offer 1c. Music piracy does not exist because of religious "information must be free" nuts like this article is talking about -- it exists because people's moral feeling about getting some money to the artist is not strong enough to overcome the inconvenience of 1a (or even 1b). Maybe we should conclude that the analogy has broken down.
Society does not "accept" this sort of piracy like it's a binary switch. The "morals" curve slides down, the "inconvenience" curve slides up, and at some point they pass each other. I see no reason why they can't trade places again -- if we actually try to do something about it instead of spinning clever allegories.
I suspect we need to look elsewhere to understand the motivations of app pirates (yes, I know this was not the point, but if you're going to be facetious...). The real thing is right there, for a few dollars. I've already given Google Checkout my credit card information. I cannot fathom what would make someone deal with sketchy sites (sketchy sites whose entire purpose is to install executable code on your device) to get the same thing they can just pay for. Maybe they are in fact just religious nuts.
[0] Honestly, I can't even be bothered to pirate most things these days. I'm culturally behind because filling in the gaps in what I can actually buy in FLAC would be a part-time job. If a record shop so much as rejects spaces in my credit card number I get bored and go listen to something I've already bought. This is a problem that could use some, as they say, disruptive innovation.
For all the potential parallels with the music industry, I think there are quite a few significant differences.
Firstly, what are the current equivalents of a mobile App Store for (pirated) music? There are definitely a bunch of places you can find it if you look, but few of them are as "one-stop-shop" as current app stores.
Secondly, does pirated music often outrank the artists/album name/track titles in general internet searches? Most of the time you'll get the artist, maybe some unofficial fan sites, and some dodgy-SEO lyrics/"free if you pay for our questionable rapidshare style hosting" that probably doesn't even have the content.
If you consider piracy-specific search engines, like TPB or whatever napster/gnutella mutated into, then you're more likely to find real content, but that requires knowing where to look in the first place.
If you consider 'your VC' as an artists music label, then they've probably already got some kind of enforcement system going on. You probably won't have to do all the 'policing' yourself - it's their loss just as much as yours (if not more, due to some of the interesting accounting) if copies aren't getting paid for.
All in all, it seems like a fairly weak metaphor, although I can see how it could become more of a problem in the future.
Edit: I forgot to mention "They’re doing the best they can, they say. Most of all, they’re complying with the law, they say." - I can't imagine many people who download pirated music do so without realising that it's illegal and/or immoral. Legitimate looking services like streaming sites are harder to judge - they might have a license for the content, or they might not. Compare this to an official platform App Store, where consumers can reasonably expect some level of dilligence in ensuring ownership. And if it becomes necessary, there's some sort of accountability back to the person who uploaded the pirated content.
I imagine the author here chose android because it has a less tightly controlled app store, and it may be possible to create anonymous accounts if you're only dealing with free apps (compared to iOS where you need to have bought a dev license to get any signing keys, even for free apps, as I understand it).
what are the current equivalents of a mobile App Store for (pirated) music? There are definitely a bunch of places you can find it if you look, but few of them are as "one-stop-shop" as current app stores.
Large torrent sites, like The Pirate Bay or Demonoid, are one-stop-shops for music & film downloads.
does pirated music often outrank the artists/album name/track titles in general internet searches?
No, not for the band/track/album name, but for "$ALBUMNAME torrent" or "$ALBUMNAME download" pirate sites are high up.
>I forgot to mention "They’re doing the best they can, they say. Most of all, they’re complying with the law, they say." - I can't imagine many people who download pirated music do so without realising that it's illegal and/or immoral. Legitimate looking services like streaming sites are harder to judge - they might have a license for the content, or they might not.
The reference there is to the filesharing sites, not to pirates.
> Many felt the software should be bundled with the machine and the current distribution method was Gates' problem. Others questioned the cost of developing software.
So the rebuttals were "it's hard to get" and "it shouldn't cost that much." Man, I heard that somewhere recently...
From day one my gut has always told me that Android users are pretty much like Amiga users were back in the day -- the idea of paying for software (any software!) seems like a bad idea. That may be good news if you're Google or a carrier, but it's bad news if you're a developer.
To me fair if Android is part of the "Google way" and maybe the solution is to have advertising bring in revenue (which goes back to AdSense). On the other hand iOS reminds of the Mac back in the day: The users seem to be willing to pay for software -- however that software better be damn good.
So perhaps the solution is to really think of both platforms as being a very different play from each other. Most developers think of their program as something to port between platforms, but maybe that's not what this ecosystem is about? In the same way the games that you would build for Nintendo DS wouldn't even be aimed at the same audience as the Xbox.
Exactly. Android is similar to the traditional PC market, so for non-critical software SaaS or advertising are more profitable than shrinkwrap -- unless you stumble on the Android equivalent of MS Office (i.e. something so critical that people will just consider it a natural cost of doing business).
Reading this, I sympathise completely with the developers (being a developer myself). And I also see the uncomfortable parallel with arguments I've seen/made about the music industry.
If musicians had nearly as much stake in their distributed product, from a percent standpoint, as a startup founder has in his/her business, or if the music industry were remotely as equitable, all things considered, as the software industry, then the essay's apparent allegory might ring a little more true to me. But the practical reality is musicians don't have a similar stake, or a similar chance at making a sustainable living, as software founders.
If I were to reverse The essay's tactic, by way of, for instance, rewriting a paragraph of another certain famous essay about the music industry (which is admittedly dated but still mostly relevant even in the age of iTunes), you could see the contrast pretty quickly. I doubt that anybody would agree that the software industry is this bad. Let's call this hypothetical essay "The Problem with Software" and see if you agree (with apologies to Steve Albini):
"Whenever I talk founders who are about to sign with a major startup incubator, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless Angel Investor at demo day holding a fountain pen and a contract waiting to be signed."
Let's say my hypothetical essay goes on to itemize point-by-point in a detailed and authoritative way how startup incubators and VCs virtually always end up screwing over founders and developers every time...well it couldn't because there are no such numbers, no similar data, because in general software startups don't operate that way. The dynamics in the two industries are entirely different and the analogy doesn't work, for various reasons not the least of which is that the average founder has a far higher chance of making money, according to the known risks, than the average musician relying on sales and downloads. VCs, in general are far more equitable (big assumption there but I'll stand by it anecdotely) than the average label, which operates on long-standing numbers-manipulation that rarely if ever compensate artists fairly or transparently. This doesn't make piracy right, it just makes attacking it relatively inconsequential to the artist.
The essay is right, albeit ironically so, about one thing. The music industry has indeed moved on. The future is much more than live events, though, it's innovative business models (like, say, for instance Earbits', which I'm intrigued by and really hope works) and creative manipulation of new media, as bands like Pomplamoose and OK Go have done. The music industry is a dinosaur, and piracy is only a small part of the problem. The main issue is that the music buying public is jaded, fragmented and far less easily manipulated into buying than in the past. The available music is vast in number and the average music fan can listen and partake in countless genres and acts, only a few of which might be shared by friends.
The essay's principles are in the right place -- defending the incomes of musicians, but the allegory ignores a chasm of differences between the two industries, the massive inequity of the music industry towards artists, and the simple truth that there's nothing anyone can do about it, certainly not through the old RIAA/ASCAP/etc. model.
The simple fact is that most startup founders not only create the products that define their success, but drive that success almost entirely on their own, with modest help from their investors. As much as everyone likes to hate on record labels, the good ones do almost everything involved in the business of making your music successful. The artist is the product, but very rarely does the artist drive the business. Most are terrible business people. The amount of money a record label puts into a deal might look like a small VC deal. But the amount of work they put in is something else entirely. That is why they take a larger share, and as long as they're fair and do a good job, they deserve a significant amount of the returns.
Their behavior for the past 20 years can be cited as a reason not to want to contribute to them as businesses, but the reality is that, while most artists who have a label make very little, most who don't never make it at all.
And indeed the market has spoken, and most android developers have listened: Apps Should Be Free(mium). That's the difference between startups and Big Music. Startups figure out how to make money out of free apps.
Who are these people that go to 132 different android app markets to find a free version of the software they see on google's market for $0.99? Are they really the kind of demographic you need to worry about?
Is there not a way of giving your app away for free, and then encouraging users to setup some sort of subscription or purchase from within the app if they like it? People regularly provide voluntary financial support (tips, street performers)when it's easy and they see benefit.
Unless the ev1l pirat0rs actually compiled a different version of your app in order to give it away for free without those messages (which seems unlikely given there's absolutely no incentive for them to do so) you'd make a pretty penny through the sheer volume of users.
Imagin busking to an audience of 1 million people, all equidistant from your guitar case with one dollar in their hand?
The scale at which digital distribution allows piracy is the same thing that will make you money: you have free distribution to millions of people, just figure out a way for them to voluntarily give you money and you'll be sorted.
That's a perfectly fine choice for an artist to make.
If they do not want to do that, and instead would like each person who takes a copy of their work to pay for it, is that not also a choice they should have? Your choice as a consumer should then be to either pay that person for a copy, or not take a copy and move on.
Nobody is arguing that giving away music isn't a viable model for success - simply that it's not ethical to make that choice on behalf of content creators.
[+] [-] kylec|14 years ago|reply
[+] [-] baddox|14 years ago|reply
Especially with database-driven apps and SaaS products, distribution (hosting) is still most of what you're paying for. If someone leaked the back end source code for Github or Dropbox, of course there would be people who would host them for themselves and avoid paying, but I can't imagine it would cut into their revenues at all.
But with music, as soon as it's released in a digital format, anyone with an internet connection has near-frictionless access—the music creators are no longer offering any value from distribution other than the convenience of online stores like iTunes or the artwork and collectibility of a physical CD. The music industry and smaller musical groups/labels are certainly figuring this out, and experimenting with ways of offering something of value. Removing DRM was a big win because DRM did nothing except ruin the supposed convenience of online purchases. Cloud and subscription services (both pay and ad-supported) offer convenience and even better immediate availability than piracy.
[+] [-] ericHosick|14 years ago|reply
The development community has a great solution: app stores. But these only work if the people who run the app stores are willing to help protect the products of those who sell in that store. I think this is what the post is mostly about (and has little to do with the music industry).
To pirate work on the net... Whatever.
To pirate work by placing it in the same app store that your product is sold. That is just messed up.
[+] [-] socratic|14 years ago|reply
The analogy between music and tech suggests that the two hits-based industries selling digital goods are not so different after all. But why would our morality in one case be so different from the other case?
If anything, this allegory seems to suggest to me that the recording industry has committed one of the biggest public relations bungles of our lifetimes. People who wouldn't think to pirate a mobile app would pirate music without a second thought thanks to widespread lawsuits, pay-for-play, price fixing, and of course, ease.
[+] [-] briandear|14 years ago|reply
[+] [-] oelewapperke|14 years ago|reply
[deleted]
[+] [-] baddox|14 years ago|reply
> They tell you your business model is broken. You should make money some other way. Maybe you should sell t-shirts with your company’s name on them, or put on events of some kind and charge for tickets. That’s where the real money is. Paid apps are a thing of the past, they say.
I can't help but think, Yeah, I actually do think that. Like it or not, distribution of quality media was a big part of the value provided by the music industry before the digital age and the internet. I'm not making an argument for or against the ethics of the piracy itself, but I think music producers (both big studios and "little guys") are unwise to rely on legislation and lawsuits to protect their business.
[+] [-] Triumvark|14 years ago|reply
That was Marx's labor theory of value. Marx was wrong.
You deserve a return only when you efficiently meet someone else's needs. The secret to economic success is not sweat, but creative sloth.
We measure value against the cost of substitutes, and other people already entertain me for free (without piracy).
Maybe entertainment just isn't a hard problem. Maybe the bottom 99% of entertainers are basically tagging cat pictures. Maybe we shouldn't encourage them.
I guess if you're an app dev, and want to learn one thing from the music industry, I'd find a way to connect with fans and give them a reason to buy: http://creativecommons.org/weblog/entry/12695
Then look for ways to be creatively lazy, and make sure your app can't be replaced by going for a walk on a spring day.
[+] [-] glimcat|14 years ago|reply
[+] [-] FxChiP|14 years ago|reply
This really depends on how you define loss.
In a standard legitimate sale of a product, there is a bidirectional exchange of value -- the customer submits currency whose total value is equivalent to the value requested for the product being purchased. Simultaneously, for submitting the currency of that value, the customer receives a product of that value. (We'll assume the price is totally fair and equivalent to value at this point, but even if it's not the price presumably still includes the true value of the product, if not more)
In an illegitimate transaction -- literal theft, in this case -- the criminal customer forcibly receives the product, exchanging nothing of value in return to the merchant or the producer of the product. In this case, there is no question of loss; the customer has received something with inherent value and given no value.
In the illegitimate transaction of piracy, the end result is the same as theft with the sole exception that the original product has not been "lost" in the traditional sense of the word -- however, the criminal customer has still received a product of value and exchanged nothing at all, much less the value of the product.
Now, regardless of which of these three transactions has taken place for your product, I am presuming that your product had a significant cost to develop -- unless, of course, all of your tools were free, you had no expenses at all and you regard your time as totally worthless, in which case all income from the product is profit. I submit to you, then, that if your costs in developing your product surpass the value you received for it, yet the value you received for it is, itself, surpassed by the value of the product "in the wild" -- e.g. you have sold $450 worth of software, yet there are $750 worth of copies of it total being enjoyed by people (purchased & pirated combined) (100% arbitrary numbers), and the cost to develop the product was around $1500 -- then you have certainly incurred a loss on the sole basis that you have not received enough value to cover your costs.
The standard rebuttal to this is the tried-and-true "but they would not have purchased my product anyway." Perhaps this is true -- however, I would consider this irrelevant. Under normal, legitimate economic circumstances, the purchase of a product is the only way to attain it; therefore, if they would not have purchased the product anyway, they wouldn't have the product. In this case, they have not purchased the product, but they do have it and enjoy its use, and you have received no value in return for it despite having put value into it.
However, assuming the value received for the product exceeds the costs of producing it, but the value of the product "in the wild" as mentioned above still exceeds the value received... perhaps "loss" is less correct in this instance, but you are still lacking the total value that under normal circumstances you should have received. What would you call that?
In any case, I am not sure how it is fallacious to call a product of value obtained illegitimately (one way or another) for free a loss to the product's producer.
[+] [-] jrockway|14 years ago|reply
Ultimately, piracy breaks down to "people want your stuff, but you've priced it too highly". In the case of apps, that's all it is. In the case of music, it's a little different. Music is cheap, but it's rare that you can get it in a good format: everything is lossy, and for people with good audio kit and good hearing, that makes the music unusable. Therefore, people that both Want It Now and want full quality are going to download the FLAC torrent rather than buy lossy MP3s. (They won't buy the CD because it takes too long for the mailman to deliver it.)
The same goes for movies and TV. Nobody will sell you those things without DRM, so if you use Linux exclusively, you have no option but to pirate the content. Make every TV show a standard non-DRM'd HTTP download for a buck, and piracy (among people with money) evaporates instantly. But the content producers want a bogeyman to blame for all their problems, so they intentionally keep piracy alive.
(If there were no such thing as the ability to pirate movies, people still wouldn't have bought the 88th redo of Star Wars. We liked it the first time. But it's easier for Lucas to blame the evil greedy pirates than his evil greedy self.)
[+] [-] briandear|14 years ago|reply
The problem isn't price -- it's the barrier of payment.
[+] [-] dorian-graph|14 years ago|reply
Ultimately I would say piracy usually breaks down to people wanting things for free. If we stop looking in our inside circles (Enthusiasts, developers, etc—the 'enlightened') and then look outside at the mythical average man, or, the masses.
Recently someone in my Facebook feed made a comment about loving BitTorrent (Hey, at least he and others are moving on from Limewire) because he could get movies for free. This comment had a few 'lol awsome' words in it. Also, think of how people latch onto "GET RICH QUICK" schemes, late-night ads promising amazing abs at minimal work, etc.
Hell, consider myself too. Back in high school I would pirate a lot of games and finish them. Why? Because I wanted them and didn't always have the money. Note: Throughout my life I've also purchased a ton of games starting back with Hocus Pocus, Raptor and Warcraft. ;) I've long since stopped and now if I want to play a videogame I will either buy it or go without. Take Portal 2 for example, I've been more carefully budgeting my money and am yet to buy it. I haven't died, yet!
[+] [-] macrael|14 years ago|reply
[+] [-] leon_|14 years ago|reply
I'd say it's rather:
> Ultimately, piracy breaks down to "people want your stuff, but you've priced it".
[+] [-] toyg|14 years ago|reply
You see, back in the '00s, it used to be common knowledge that "nobody pays for third-party smartphone apps". It was scientifically proved over and over again, on platforms like Symbian and Palm, by research after research. You see, back then getting hold of a mobile app was relatively hard; you had to go hunting for it online, find it in some sort of online directory, pay tens or hundreds to the directory (which was also trying to sell you some other crap like proprietary downloaders etc or spamming you or generally treating you -- and developers! --- like shit). The market was tiny and tech-savvy, and resented having to pay so much for small add-ons, often of dubious quality.
Then came the Apple AppStore, and lo, all of a sudden people were paying for apps! Why? Because the ease of purchase and lower prices dramatically enlarged the market to people who simply couldn't be bothered to jailbreak and pirate just to save a few quid, or wanted to support authors. The pirate market didn't disappear, but mobile developers flourished nonetheless.
Now replace apps for music, and good streaming services for the AppStore, and I think you can see where things are going: consumers wants a simple and immediate buying experience where they don't feel like they're being ripped off by third parties (even though he still is, by Apple) and with low prices. Give them that, and they're quite happy to pay; try to force them into digital slavery, and they'll resort to the black market.
Now, guess what the music industry tried to do for the last 15 years.
[+] [-] earbitscom|14 years ago|reply
It is really very simple. If someone feels the price an artists asks for their songs is too much, or feels that obtaining a copy legally is too much "work", then they don't need to have a copy. They're not entitled to it for any reason whatsoever.
[+] [-] Tichy|14 years ago|reply
I think the way to approach the issue is to think what does the population want, because the population elects the government which then makes the law.
Since people are copying music, obviously they want free music. But they also want music. The question is, if copying was legal, would music go away (or decline)? I think for a lot of art forms it is obviously not so. People will create art no matter what, as has been shown over the centuries. Even today, getting rich probably should not be your first motivation when forming a band.
It becomes a problem with art that is very expensive to produce, like movies and computer games. I think part of the solution will be to move those things into Kickstarter mode, that is, make people pay in advance for their creation. In the same vein of course it should be easy to pay people after the creation. Already a lot of people seem to be willing to do so.
This I think also has some precedence in history, when artists typically had some sponsor.
Also of course technology will make those things cheaper to produce too - in the future it will be possible to simply add actors to your movie with a mouse click. Computers could simulate Tom Hanks, Marylin Monroe or whomever you desire them to simulate. Already today it is probably quite cheap to create the scenery in movies.
[+] [-] kalvin|14 years ago|reply
Is this one of the reasons games are all going free+in-app downloads? What's the actual state of mobile app piracy today? It seems like many mobile developers are already moving to alternative models not involving direct sales, whether that's a subscription, virtual goods, or pay-for-addons/upgrades.
[+] [-] shabble|14 years ago|reply
About the only thing that I can think that will defend against this is a streaming/always online service that actively requires cooperation from a server as part of its implementation. Any offline licensing system can and most likely will be cracked eventually, until you end up with the equivalent of CD-keys and server-side detection of duplicates or invalid ones. Even then, if you're only using the remote end for license validation, that code can just be removed - the most viable models are either streaming content (in a way that can't be batched and rehosted/provided locally), or offering compelling multi-player / shared online features that require a valid auth token.
[+] [-] goodside|14 years ago|reply
(No victim-blaming or other moral subtext intended. Just curious.)
[+] [-] william42|14 years ago|reply
[+] [-] lwhi|14 years ago|reply
In my opinion, we can not expect to make money from the straightforward sale of any form of IP for much longer. New models are being developed and services industries are adapting to offer the value that's traditionally been disseminated through IP sale .. this is where the future is heading.
The bleating, repetitive carrion-call of the old guard is becoming increasingly annoying. While their incentive seems obvious; the fact that these organisations are unable to innovate is even more blatant.
[+] [-] rick888|14 years ago|reply
The finite resources aren't the final product, but the work that goes into it. Create Adobe Photoshop for me (not copy, but build from scratch).
"this is where the future is heading"
I no longer write applications. Everything I release is a service. In the past, there would have only been a one-time fee for my work, but now everyone needs to pay a monthly fee for it.
This is the result of piracy: monthly fees for everything.
[+] [-] earbitscom|14 years ago|reply
[+] [-] decklin|14 years ago|reply
What would an honest Android-app allegory for this be? Perhaps a consumer is faced with these options:
1. An official shop, which accepts money (yay!), gives only some (boo!) of it to the artist, and offers:
a. The source code to build the app (i.e. a plastic disc that you have to rip yourself)
b. maybe, sometimes, a version of the app compiled for a 320x480 screen (acceptable lossy compressed files)
c. maybe, even fewer times, a version of the app compiled to use any screen size (lossless files, or high-quality lossy or whatever you like)
2. A dodgy (boo!) pirate site, which doesn't accept money (boo!), and offers all of the compiled versions.
Of course this is not even close to reality. No Android apps are compiled by normal end users. All paid Android apps offer 1c. Music piracy does not exist because of religious "information must be free" nuts like this article is talking about -- it exists because people's moral feeling about getting some money to the artist is not strong enough to overcome the inconvenience of 1a (or even 1b). Maybe we should conclude that the analogy has broken down.
Society does not "accept" this sort of piracy like it's a binary switch. The "morals" curve slides down, the "inconvenience" curve slides up, and at some point they pass each other. I see no reason why they can't trade places again -- if we actually try to do something about it instead of spinning clever allegories.
I suspect we need to look elsewhere to understand the motivations of app pirates (yes, I know this was not the point, but if you're going to be facetious...). The real thing is right there, for a few dollars. I've already given Google Checkout my credit card information. I cannot fathom what would make someone deal with sketchy sites (sketchy sites whose entire purpose is to install executable code on your device) to get the same thing they can just pay for. Maybe they are in fact just religious nuts.
[0] Honestly, I can't even be bothered to pirate most things these days. I'm culturally behind because filling in the gaps in what I can actually buy in FLAC would be a part-time job. If a record shop so much as rejects spaces in my credit card number I get bored and go listen to something I've already bought. This is a problem that could use some, as they say, disruptive innovation.
[+] [-] snippyhollow|14 years ago|reply
[+] [-] shabble|14 years ago|reply
Firstly, what are the current equivalents of a mobile App Store for (pirated) music? There are definitely a bunch of places you can find it if you look, but few of them are as "one-stop-shop" as current app stores.
Secondly, does pirated music often outrank the artists/album name/track titles in general internet searches? Most of the time you'll get the artist, maybe some unofficial fan sites, and some dodgy-SEO lyrics/"free if you pay for our questionable rapidshare style hosting" that probably doesn't even have the content.
If you consider piracy-specific search engines, like TPB or whatever napster/gnutella mutated into, then you're more likely to find real content, but that requires knowing where to look in the first place.
If you consider 'your VC' as an artists music label, then they've probably already got some kind of enforcement system going on. You probably won't have to do all the 'policing' yourself - it's their loss just as much as yours (if not more, due to some of the interesting accounting) if copies aren't getting paid for.
All in all, it seems like a fairly weak metaphor, although I can see how it could become more of a problem in the future.
Edit: I forgot to mention "They’re doing the best they can, they say. Most of all, they’re complying with the law, they say." - I can't imagine many people who download pirated music do so without realising that it's illegal and/or immoral. Legitimate looking services like streaming sites are harder to judge - they might have a license for the content, or they might not. Compare this to an official platform App Store, where consumers can reasonably expect some level of dilligence in ensuring ownership. And if it becomes necessary, there's some sort of accountability back to the person who uploaded the pirated content.
I imagine the author here chose android because it has a less tightly controlled app store, and it may be possible to create anonymous accounts if you're only dealing with free apps (compared to iOS where you need to have bought a dev license to get any signing keys, even for free apps, as I understand it).
[+] [-] rmc|14 years ago|reply
Large torrent sites, like The Pirate Bay or Demonoid, are one-stop-shops for music & film downloads.
does pirated music often outrank the artists/album name/track titles in general internet searches?
No, not for the band/track/album name, but for "$ALBUMNAME torrent" or "$ALBUMNAME download" pirate sites are high up.
[+] [-] sid0|14 years ago|reply
What.cd.
[+] [-] recoiledsnake|14 years ago|reply
The reference there is to the filesharing sites, not to pirates.
[+] [-] 6ren|14 years ago|reply
Bill Gates had problems with copying way back in 1976. It seems to have worked out OK for him. http://en.wikipedia.org/wiki/Open_Letter_to_Hobbyists
[+] [-] libria|14 years ago|reply
So the rebuttals were "it's hard to get" and "it shouldn't cost that much." Man, I heard that somewhere recently...
[+] [-] michaelpinto|14 years ago|reply
To me fair if Android is part of the "Google way" and maybe the solution is to have advertising bring in revenue (which goes back to AdSense). On the other hand iOS reminds of the Mac back in the day: The users seem to be willing to pay for software -- however that software better be damn good.
So perhaps the solution is to really think of both platforms as being a very different play from each other. Most developers think of their program as something to port between platforms, but maybe that's not what this ecosystem is about? In the same way the games that you would build for Nintendo DS wouldn't even be aimed at the same audience as the Xbox.
[+] [-] toyg|14 years ago|reply
[+] [-] veyron|14 years ago|reply
[+] [-] Volpe|14 years ago|reply
Poignant.
[+] [-] ericflo|14 years ago|reply
[+] [-] davesims|14 years ago|reply
If I were to reverse The essay's tactic, by way of, for instance, rewriting a paragraph of another certain famous essay about the music industry (which is admittedly dated but still mostly relevant even in the age of iTunes), you could see the contrast pretty quickly. I doubt that anybody would agree that the software industry is this bad. Let's call this hypothetical essay "The Problem with Software" and see if you agree (with apologies to Steve Albini):
"Whenever I talk founders who are about to sign with a major startup incubator, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless Angel Investor at demo day holding a fountain pen and a contract waiting to be signed."
Let's say my hypothetical essay goes on to itemize point-by-point in a detailed and authoritative way how startup incubators and VCs virtually always end up screwing over founders and developers every time...well it couldn't because there are no such numbers, no similar data, because in general software startups don't operate that way. The dynamics in the two industries are entirely different and the analogy doesn't work, for various reasons not the least of which is that the average founder has a far higher chance of making money, according to the known risks, than the average musician relying on sales and downloads. VCs, in general are far more equitable (big assumption there but I'll stand by it anecdotely) than the average label, which operates on long-standing numbers-manipulation that rarely if ever compensate artists fairly or transparently. This doesn't make piracy right, it just makes attacking it relatively inconsequential to the artist.
The essay is right, albeit ironically so, about one thing. The music industry has indeed moved on. The future is much more than live events, though, it's innovative business models (like, say, for instance Earbits', which I'm intrigued by and really hope works) and creative manipulation of new media, as bands like Pomplamoose and OK Go have done. The music industry is a dinosaur, and piracy is only a small part of the problem. The main issue is that the music buying public is jaded, fragmented and far less easily manipulated into buying than in the past. The available music is vast in number and the average music fan can listen and partake in countless genres and acts, only a few of which might be shared by friends.
The essay's principles are in the right place -- defending the incomes of musicians, but the allegory ignores a chasm of differences between the two industries, the massive inequity of the music industry towards artists, and the simple truth that there's nothing anyone can do about it, certainly not through the old RIAA/ASCAP/etc. model.
[+] [-] earbitscom|14 years ago|reply
Their behavior for the past 20 years can be cited as a reason not to want to contribute to them as businesses, but the reality is that, while most artists who have a label make very little, most who don't never make it at all.
[+] [-] buff-a|14 years ago|reply
[+] [-] vacri|14 years ago|reply
[+] [-] dools|14 years ago|reply
Unless the ev1l pirat0rs actually compiled a different version of your app in order to give it away for free without those messages (which seems unlikely given there's absolutely no incentive for them to do so) you'd make a pretty penny through the sheer volume of users.
Imagin busking to an audience of 1 million people, all equidistant from your guitar case with one dollar in their hand?
The scale at which digital distribution allows piracy is the same thing that will make you money: you have free distribution to millions of people, just figure out a way for them to voluntarily give you money and you'll be sorted.
[+] [-] earbitscom|14 years ago|reply
If they do not want to do that, and instead would like each person who takes a copy of their work to pay for it, is that not also a choice they should have? Your choice as a consumer should then be to either pay that person for a copy, or not take a copy and move on.
Nobody is arguing that giving away music isn't a viable model for success - simply that it's not ethical to make that choice on behalf of content creators.
[+] [-] unknown|14 years ago|reply
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