To take this discussion in a slightly different direction (IOW, back towards being on the original topic :-D )
An issue here that hasn't been talked about is the cost. Until recently, CDs would cost you upwards of $17.99 for a single CD at your local store (Wal-Mart, Best Buy), etc. One or two of those quickly add up. And people are sick of paying even $15 for a CD that has 1 or 2 good songs on it.
So people download. And the music community (record labels and signed artists) complains about stealing, yet offers no solutions at all. All they say is why would anyone pay (there a quotes on the net from famous record execs saying that no one would pay for it if they can download for free). Then along comes iTunes and proves them all wrong. Billions of songs paid for and downloaded - in the same market where the record companies and artists said no one would pay. People WILL PAY, as long as you charge a reasonable price! The record companies and artists were so short-sighted. Now, finally, they are waking up.
Last month I was in BestBuy for the first time in a LONG time. I was there to buy one of the new Beatles remasters. I was looking around and saw several NEW CDs on sale. It used to be that if you find a new CD for $11.99 or $12.99 at BB, that was a good deal. Well I ended up picking up the new Wolfmother CD for $7.99. Amazon.com now has Joe Bonamassa's Black Rock CD available for $9.99 - I'll probably pick that up too.
So the record companies and artists need to
DEAL with the fact that there is free stuff out there. How? Sell singles on iTunes, etc. is just one way. But when people download it, they should be able to do what they want with it. If I get a CD for free, I might share it (hypothetically), but if I actually buy it, I might be far more reluctant to let others profit freely off of my hard earned & spent money. You can make all sorts of justifiable moral judgements here, and you'd be right, but it doesn't change the facts. IOW, if I pay to download it, I am FAR LESS likely to share it. The problem isn't everyone, its a small few. But If I download something, and PAY for it, and I can ONLY play it on iTunes or WMP or my iPod, sorry, thats not good enough. ITunes blows. What if I don't have an iPod, but some other mp3 player? What if I have a USB reader in the car and I want to put the music file on a thumb drive so I can listen in my car? I can't. That is a problem. iTunes and some others are trying to solve this issue by offering DRM-Free music, but at a 40% premium in some cases. But at least they are recognizing the issue and starting to work on it.
Also, at $0.99/song, a 13 song album costs me $13 to download, and I might be able to buy it brand new, in the store, for $12 (or $7.99!). I pay less, and I have a physical CD, a booklet, and I can do what the hell I want with the CD. I can sell it, I can rip it, etc. There is a big disconnect here between pricing over various different media that makes no sense. This problem needs to be solved as well.
I'm the kind of person that likes to buy a whole album. $7.99 for a whole album? Sure. $15 for a whole album? Every song on it had better be good (or at least more than like 2 or 3)! And thats rarely the case (obviously depends on the artist). There needs to be consistency in pricing, and there is not. I don't mean between artists. I understand why a Michael Jackson album might sell for $12 and a Wolfmother album sells for $7.99. Thats not what I am talking about. If I sell a 12 cut CD in the store for $7.99, then each individual song online had better cost a
maximum of $0.50 (brings the cost for the album to $6, which is a nice "discount" for not getting the physical CD and booklet), and I had better be able to make that music portable for myself. People tend to resent being treated like an untrusted criminal BEFORE they have done anything wrong. Or maybe thats just me?
Oh, and lets not forget that a CD is MUCH better audio quality than what iTunes offers. That decrease in quality needs to be reflected in the price as well. I wish they would offer FLAC, but bandwidth is an issue as well. Maybe in the future.
Another thing that has to be fixed in the pricing is the disconnect in preceived value between DVDs and CDs. I can get a DVD of a movie that cost $100 million to make, a nice package, and a bunch of cool extras including commentary, interviews, behind the scenes, how the effects were done, etc. for $13. Yet a CD that cost $20k to make (less these days in many cases), I get the audio and a booklet. Wow. Thanks for nothing (extra).

and it costs the same price of that DVD!!! What you went through to make it doesn't matter to the end consumer. If you light your cigarettes with a roll of $100 bills, or you can't give your sick daught a good square meal, doesn't matter to the consumer. They don't know. They want value for THEIR dollar, because they too might not be able to give their daughter a square meal. Hopefully you get my point. Thats part of the appeal of the new Beatles stuff. Not only has it been remastered, and very well, but each comes with a documentary video too. There's added value that you generally can't get from simply downloading it.
Lets say all of these issues are solved. More people buy, but there is still that % of the market where you have to compete with free. So how do you do it? You offer added value. Why do people buy DVDs? Well you get all those extras, not just the movie. I can download movies just like the next guy, and I can't afford to buy every DVD I want. But if you give me something extra, your DVD will top my must-have list, and I will go out and buy it. I could have downloaded all three of the LOTR movies for free, but I bought the deluxe editions because for about $23.99 (I think that was the initial price) I get a SH*T-TON of extra stuff! Like in the Beatles example above, there are probably torrents of the Beatles albums in FLAC with all of the documentaries and everything, but that would be a large file, and the number of people that download that that would have otherwise actually bought it is likely negligible in the larger view.
The movie industry gets this (for the most part). Comedians get this. Most of the comedy albums that come out now run like $12 and are an audio CD and an in concert DVD or VCD as well. The record companies are only STARTING to get this!
So Scott can complain and liken downloading to robbing a bank all he wants. And other than his exaggerations, he has very valid points. But the market is what it is, and that is not gonna change. Instead of complaining to reporters, he should be complaining to the record company, and discussing strategy with them (and he may very well have, I don't know). It's business. If there is a problem, develop a strategy to solve or compete, and quit just whining about it and offering no solutions.
There are solutions out there, but (gasp) you (record industry) have to actually open your eyes to see them!
To paraphrase Bruce Campbell "You now record industry folks... a bunch of bitchy little girls"
