Of course music and entertainment will never die, but the revenues associated with them are under threat as piracy continues and initiatives to save them are thwarted by old school music and film moguls who dream of remedies that hark back to the dark ages.
If 95 per cent of the music on iPods has been downloaded for free from P2P sites, then content creators are in denial if they think they are going to reverse this trend by suing users or charging ridiculous prices for music, video and experiences that can be transported over the internet for free.
There will always be people who won't pay, and there will be others who will pay if given additional experiences (discovery, filtering, etc). But new models are needed and the music, film and entertainment industries need to use their creativity to work with those partners who are helping them to monetise their content rather than preventing them by charging advances and minimum guarantees that make entry into digital services impossible.
These are the 12 steps alldigdown proposes for digital recovery:
1. Admit that you are powerless over the consumer -- the consumer is always right (and if they want it for free, give it to them!).
2. Begin to believe that being open minded can restore you to sanity -- the world has changed and it is time to change with it.
3. Make a decision to turn your life and your will over to logic.
4. Learn from your past mistakes and those of others in similar industries (the ostrich in the sand strategy did not help the music industry, so why should it work for film and TV?).
5. Admit to yourself and those you serve that you were wrong. Apologise and tell consumers you are ready to give them what they want.
6. Be ready to pounce on any opportunity to get your content in front of those passionate about your creativity -- it is a new day.
7. If you fail, try again… This is the time for creativity, not for retreating into what worked 50 years ago before the internet existed.
8. Create a list of all potential digital distributors and figure out how you can help them help you.
9. Stop suing people, especially your customers. Work with corporate pirates who ripped you off before, but make sure they share their wealth with you and those you represent.
10. Keep following these steps. One epiphany is not enough to last into the next decade -- self-improvement is an iterative process.
11. Actively seek to improve yourselves: ask your customers and partners over and over and over what they really want. And listen to them!
12. Having had a rude awakening as a result of these steps, try to carry the message to others and to practise these principles in all of your business affairs.
Shelley Taylor is founder and CEO of alldigdown.
