The Day After Tomorrow
In terms of music in 2011, supply exceeds demand. In fact, it’s been like that for a little under a decade.
Basic economics should tell you that when supply exceeds demand, the market price drops. To put this into context, it has made music worthless.
Most stores are not 24/7. However online shopping allows the consumer to shop whenever they like.
So with that in mind, how did all these Grey Poupon execs think that would be bad for business?
What’s worse is that there is evidence that Napster helped increase sales of music. Yikes
Around 1999/2001, the whole Napster situation was handled horribly by the RIAA. This should be referenced in every industry handbook and never be forgotten.
Instead of negotiating and stemming the supply of music on the internet, the labels tried to destroy Napster and still continue to sue and shut down file sharing sites.
The record industry is paying the price today – I don’t advocate illegal downloading but the consumer was overcharged for decades by these corporations.