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Second, you write, "Don't concentrate just on what sales come from experiencing music on the Internet. Consider what sales are being lost as a result." You're not suggesting that the labels can control sales by trying to reduce the supply of music online, are you? After a decade of trying in vain to do just that, isn't it time to recognize that it simply isn't possible? The point should be to extract as much money as possible from the consumption of music online, wherever it happens. That doesn't mean signing deals with everybody -- a valid business model should be a prerequisite, and it's clear that places like Muxtape and Mixwit don't qualify. But deep-sixing Project Playlist et al. won't boost CD sales, it will simply lead people to other sources of music online. If the point of stiffing Project Playlist is to drive folks to iMeem and Last.FM, well, OK. That makes some sense economically. But if the labels are simply trying to block aggregators of online MP3s from emerging, that's a lost cause.
Jon Healey, Los Angeles Times
Thanks for the wonderful blog and happy holidays.
Rob