No Tears for Media Giants

The Government here is under a lot of pressure from media companies to put a lot of pressure on ISPs to stop file sharing downloads. At the same time, the High Court ruled against a pub landlady who used a foreign service to show Premier League football, rather than BSkyB, which has the exclusive right to show the matches in the UK.

I think there is a difference between using a camcorder in a cinema to get the scoop on the release of a film and downloading a telelvision programme that has already been shown. It’s a bit like the pub landlady, only with no cost implications for the viewer. The programme has already gone to air. It doesn’t cost the end user anything wherever they watch it. If companies want to maximise profits from advertisers, they need to broadcast simultaeously worldwide, rather than go from country to country in a piecemeal fashion.

When it comes to music downloads, I think there is a question as to whether it is mass larceny or mass revolt against the fleecing of the record companies. The record companies are complaining that they face ever-declining profits.

However, back in January 2006, “Sony BMG reported net income of $178 million on sales of $1.49 billion for the three months ended December 31 [2005].” Then this month Bloomberg reported on the BMG half of that partnership:

Bertelsmann AG, Europe’s largest media company, plans to boost revenue by about 50 percent over the next eight years as it expands the Arvato services unit and in countries including China and India.

Sales will exceed 30 billion euros ($44 billion) by 2015, Chief Executive Officer Designate Hartmut Ostrowski said in Berlin today. That’s similar to the revenue Time Warner Inc., the world’s largest media company, posted last year. Bertelsmann will have as much as 7 billion euros to invest in the next four to five years, he said.

Doesn’t your heart just weep for them when somebody shares music? Read the rest of this entry »