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Business News (more headlines) 10-08-2003

New Report Urges Recording Industry To Give Music Away For Free

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In response to the legal campaign against music piracy, Parks Associates today issued a free white paper recommending new business models to a recording industry that has so far failed to adapt to today's digital environment. The paper, 'Thinking Outside the Disc,' advises fighting digital piracy through a free music-on-demand service which would rely on advertising revenue, rather than pursuing legal actions that ultimately ignore the realities of today's entertainment market.

"Digital music has changed the market, and business models need to change too or the industry will suffer the consequences," said John Barrett, research analyst at Parks Associates. "Even if file-swapping networks were to magically disappear, the traditional revenue models would still be under strain."

In the paper, Barrett points out that the recording industry has historically been able to sell consumers the same piece of music multiple times by repackaging it and introducing new, improved mediums. Digital music allows consumers to repackage music themselves and negates the need to upgrade formats.

'Thinking Outside the Disc' draws data from two nationwide consumer surveys on digital music use and is available for download at: www.parksassociates.com.

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