Thursday, July 12, 2007

allofmp3.com We Hardly Knew Ye

So sometime around the 2nd of July the cheese favorite music site, allofmp3.com went down. The same thing happened last May, though the site made it back up. This time, though, it appears that the Russian government pulled the plug.

In case you don't know what allofmp3 is/was, the cheese'll break it down for you.

The average cost of a single music track on itunes is .99 cents, and an album is 9.99. Now, allofmp3 would sell tracks for .15 cents (yeah, that right FIFTEEN CENTS) and albums for around 3 or 4 dollars. The really great thing about allofmp3, though, was the options. You could buy a track for fifteen cents, but that might be a 128 kb bitrate, or you could spend fifty cents on 256 kb track, etc. And you weren't only limited to mp3's, they had something like 7 different file type options. Also, they didn't put and DMR encoding on any of their tracks, so once you downloaded a track, it was yours forever. The best thing about it, though, was that since the company was operated out of Russia, they had a lot of music from outside the US, specifically from Europe and England. So you weren't stuck with the crap you hear on suck-ass US radio.

Now, allofmp3 was a Russian company, and operated legally within Russian copyright law. Of course, because these laws are unsavory to both the RIAA and major US recording companies (read: doesn't pay out enough), the RIAA has, for three years, put pressure on the Russian government to shut down allofmp3. They even went so far as filing a 1.64 trillion (yes, trillion with a t) dollar law suit against allofmp3 in NY (a response by an executive at allofmp3's parent company went something like, "they're free to do what they want, but it seems pointless for them to sue us in New York when we operate legally in Russia").

Of course, now the site is down, and will probably not be back. There are similar sites that operate in Russia, and while some offer similar pricing, none have the same huge catalog or as many options as allofmp3 had.

The real sad thing, though, is how much the whole episode illuminates just how out of touch media companies are. Allofmp3 had a huge following of people who would have otherwise just gotten their music illegally (and, freely, the cheese might add), but had no problem paying for stuff at allofmp3. By forcing allofmp3 to go down, the RIAA simply made this large group of people even more pissed about having to pay for content. Rather than actually working with the Russian government, allofmp3 itself, and the artists to find a reasonable compromise that would allow allofmp3 to continue to operate (even if it was at a small price increase), the RIAA decided to be a bunch of dicks.

At some point, the media companies will understand that the old business models no longer work. Digital media/the internet requires that these companies approach royalties and copyright in fundamentally different ways. Obviously, the companies do not want to face the truth, but eventually, after so much money lost on frivolous legal expenditures, they'll figure it out.

Until then, the cheese is going back to bit torrent...or, he would if he had internet at home right now.

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