Pirates bugging you? Get more efficient

by Mathew on January 10, 2008 · Comments

Via Mike Masnick at Techdirt, I came across a great post at TorrentFreak by Matt Mason, the author of a new book called The Pirate’s Dilemma. In what amounts to a preview of some of the arguments in his book (I assume, since it just came out), the former pirate-radio staffer talks about the idea that in many cases — not all, but many — piracy is actually a sign of an inefficient market, and thus the “pirates” are simply innovating where a given industry refuses to (or can’t, for whatever reason).

I happen to think that Mason is dead right, and that if the music industry had done more innovating (this is a start, but still rather late) and less suing of its customers, artists and labels would both be a lot better off than they are now. Are many downloaders shameless thieves who would never pay for anything anyway? Sure they are. But many more are music fans who are telling the industry through their actions that it’s not giving them what they want, or at least not how they want.

As Mike has pointed out many times at Techdirt, and points out again in his post on The Pirate’s Dilemma, the music industry is just one of the many industries that are struggling with the fact that they can no longer maintain the position of artificial scarcity that used to exist — in other words, they have lost much of the control they used to have over production and distribution. Time to stop whining and start innovating.

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  • Mathew would love to hear your thoughts on my boss's take on a related topic of software piracy:
    http://www.storyofmylife.com/User/user_journals...
    (yeah yeah, just hoping for some work related brownie points) ;)
  • Thanks for the link, Antje -- I think your boss makes a good point
    about the disparities between the developed world and the
    less-developed world when it comes to pricing. The problem, as she
    points out, is that if there were different prices then everyone would
    want the cheaper version.

    On a related note, I came across a quote from Bill Gates awhile back
    in which he said that piracy in China and India didn't really bother
    him, because he saw it as kind of a trial program, and that he
    expected eventually those people would wind up buying the real thing.
  • M - really? Do you by chance recall where that might have been (dag he's softening in his old age... lol). My Indian colleagues tell me that MSFT is one of the biggest proponents and supporters of the piracy police via the government and continues to push them to crackdown, but then again many of them are the same folks who like to bash MSFT for all the evils in the world.
  • There's a comment in this Fortune piece
    (http://money.cnn.com/magazines/fortune/fortune_...)
    about how tolerating piracy was the best move Microsoft ever made in
    China, and the quote I'm thinking of appeared in an LA Times story
    that is posted here:
    http://www.neowin.net/forum/index.php?showtopic...
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