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Former EMI boss says Limewire users were major iTunes customers

Douglas C. Merrill used to work for record label EMI, one of the biggest members of the RIAA. He was forced out just a year later, but now he's sharing information from inside the company. And some of that information points to an interesting conclusion about music pirates: they often end up being some of the music industry's best customers. Speaking at a conference in Sydney, Merrill said that a profile they'd conducted of users of the LimeWire music sharing service portrayed them as some of the biggest spenders on iTunes. "That's not theft, that's try-before-you-buy marketing and we weren't even paying for it," Merrill said at the show, "so it makes sense to sue them." That last part is sarcasm, we're pretty sure.

Of course, most record companies saw illegal downloading as purchases that just didn't happen, and thus lost revenue. But this conclusion hints that "pirates" aren't taking away from music sales -- they're just download music to fill out their already big purchased collections.

That's the kind of premise that the upcoming iTunes Match seems to be banking on, where users will be able to pay a subscription fee to verify any music downloaded outside of iTunes as official iTunes purchases. It would certainly end up being ironic if it turned out that the very same customers the RIAA attacked and sued back during those early days of filesharing were some of the same customers ringing in the digital music age that's now keeping record companies afloat.

[via Boing Boing]



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iTunes Apple

Douglas C. Merrill used to work for record label EMI, one of the biggest members of the RIAA. He was forced out just a year later, but...
 

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JACK

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July 28 2011 at 8:09 AM Report abuse rate up rate down Reply
Mabhatter

It's no EXCUSE for pirating, but it makes the success of Netflix and Hulu that have minimal subscriptions seem to be EXACTLY what the pubic demands. Therefore it makes all the gouging, backstabbing, price fixing of Netflix & RedBox that's gone on in the last 9 months doubly as bad because the publishers KNOW they're CREATING more pirates, by taking away what people are willing to pay for. The "invisible hand" found a legal and profitable way to distribute the media and the moguls take away.

I think this is why the Apple deal looks to be really interesting. I always figured the "genius" and "ping" features from the iTunes store were for just that. I'd venture Apple has an even BIGGER database that says exactly the same thing.... people pirate the vast collections of stuff 20 years old (not that they couldn't just borrow CDs anyway) but then actively hunt out new stuff to BUY in droves. Signing up for $25 bucks (per year) is some pretty big money in Apple sized numbers.

I do think there will be "another shoe" in that the new "locker" feature i'm guessing will only include "ripped" songs because itunes still tags your userID and system info. That way if you can get a hand on a CD it will work, but not anything downloaded from Limewire ect...

Of course my big complaint about that is that I buy tons of music from an emusic subscription. Apple treats generic MP3 formats from Amazon and emusic downright rudely. iPhone syncs don't always grab it. they don't have good tools to manage it, etc. I'm upset because labels basically ruined emusic... taking away re-downloading, upping the costs.. and driving away the indie labels that built the place.

July 27 2011 at 12:17 AM Report abuse rate up rate down Reply
ttringle

Why is it that the one guy I think I've seen who seems to get it from the RIAA get's fired a year after he starts. Just lump in the RIAA and MPAA with the idiots running newspapers and be done with it. They don't see the forest for the trees and if they don't catch up soon (the Apple deal with iCloud and Spotify seems to signify they finally are) they will be left with nothing when the artists figure out they can publish their music themselves and put them on spotify and itunes without the hindrances of the RIAA.

July 26 2011 at 8:40 PM Report abuse rate up rate down Reply
scamper

That describes me, pretty much. I used to use Limewire to get (steal) a lot of music, either because it was rare, or unavailable in my market. But I deleted Limewire years ago, and it’s because Steve Jobs was right: make music accessible, high-quality, and price it fairly, and I’ll buy. I’ve gone back and bought most of the old tracks that I originally downloaded for free. I have no problem buying if something is available. Same goes for Netflix, Amazon, or any media/vendor.

July 26 2011 at 8:24 PM Report abuse rate up rate down Reply
proud2bafrican

Dear TUAW, why the hell do i need to sign into an AIM account to be able to report a comment as spam?

jesus.

July 26 2011 at 6:52 PM Report abuse +4 rate up rate down Reply
3 replies to proud2bafrican's comment
jacoch

According Telepolis in Germany, that conducted a survey on poeple dowloading movies, they got results so bad for the major that ordered the survey that they have been asked not to publish it. It surfaced some days ago on blogs in Europe. The survey says that the other downloading movies are the ones that buy the more DVD and they ones going the most to cinema. Source here: http://www.heise.de/tp/blogs/6/150152.

July 26 2011 at 3:15 PM Report abuse rate up rate down Reply
Nick Powers

Not surprising. I've been saying this for years. If content is good, people will pay for it, regardless of where they get it from or if it's available for free. Put out a record that's got one killer track and the rest is junk, you're not going to make any money, simple as that.

July 26 2011 at 2:51 PM Report abuse rate up rate down Reply
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