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Posted by Tim on August 07, 1999 at 21:42:48:
I really doubt that differentiating legitimate copies from free copies of music will make a difference to consumers. The proverbial kids on the playground will realize that both copies sound exactly the same when they listen to them, listening being the real use of music. That kid's friends will wonder why he didn't save his money for something else that you can't get for free.
The case for bands trading advertising royalties from web sites for the right to distribute their music is diluted by the distribution beyond that point between individuals sharing their collections, which could be significant.
The idea of offering priveleges to buyers of legitimate copies could have some efficacy, but that would amount to what some fan clubs do now. I don't think a decent proportion of audiences would care to go as far as shelling out for what would amount to paltry priveleges (you can't offer front row seats to all of 5000 kids who want them).
I'm pessimistic that this technology can change current circumstances in the music industry -- to generate mass interest, you need to be in the big business of mass promotion. Unless the majors blow it in a major way, they can walk right in and dominate music in the new media.
Until I witness several success stories in web distribution, my advice for musicians & producers is to play the major label folly or plan on doing it as a hobby. Good luck -- you'll need it.