The problem with file sharing networks is that by providing free music downloads they undermine the value of CDs. The recording industry killed Napster, but file sharing still happens on a wide scale.
Obviously there is a consumer demand to download music. Perhaps the RIAA should produce their own “Music on Demand” (MoD) service. Could this idea be good for business?
Although file sharing is an easy and convenient way to get music for free, I think that people would be willing to pay a small fee for a better service. MoD could offer higher quality files, greater selection, faster downloads, more search options, and more security than any file sharing program ever could.
A recommendation feature (such as found on Amazon.com or TiVo) could help expose artists to potential fans and reduce traditional marketing costs.
Because MoD would be run by the RIAA, it would bring the power of distribution back into their hands. Artists would have to go through the RIAA (possibly paying a ‘marketing’ fee) to get their music to the public.
In order for MoD to be a success, it must replace file sharing and complement CD purchasing. MoD within itself is not meant to generate revenue, but rather to reduce file sharing and create exposure for new talent. CD purchases could be encouraged by limiting the MoD files.