Clayton is absolutely right.
The internet doesn’t fall under normal economic circumstances. Scarcity is a non-issue. Replication is free and instant. Think about that. The only thing left is development. I play games and i see game piracy in the future having a decline in the revenues of publishers and by extension developers. (this goes for music and movies and books as well). The Mises Institute has the right idea with books. Everything, as far as i know, that they publish themselves is on their site for free (I’ve downloaded hundreds of books from them for my Kindle and buy when i can. Yes i do do it) .
These laws are grasping at straws to prevent the big name music, movie, and game publishers from going bankrupt in the long run. All media should basically be free on the internet anyway. Freeware and Shareware (pay if you want) has been around ever since Windows 3.1 and that is the way the internet will equilibrate after the ENTIRE bubble has deflated. (assuming the government and our wise overlords let it/US)
Netflix has cut out blockbuster, yes? P2P will cut out stream. People are just ignorant, but when they wise up to the internet as a whole… Streaming things is a joke if you plan on “Owning” the material for use on your own terms. The only way this can be circumvented is if the EULA’s explicitly say “YOU DO NOT OWN THIS,” which some of them do. Others allow you to copy the disc or make image files for backup purposes. The only cost for anything on the internet (INFORMATION) is the infrastructure to bring the internet to your home. It has nothing to do with any centralization of any kind.
The way i see it is the corporations are TRYING to create situations of asymmetric information flows so that people will rely on them for things. And it really is as simple as that. Yes, we need to buy things in order for production of the software. music, movies to be continued, but the reality of it is that it will just be done for cheaper. What is referred to today as “user made” will soon just mean “made” because there are no centralized or dominant forces of development. (This all excludes the machines that the programs run on, obviously.)
The ‘cloud’ concept is also a desperate way to keep control over the internet. “Store your data with us on our servers that way if they go down or get hacked your PC or tablet or laptop is worthless!” Yea, good thinking Jobs… Sure thing, Google… Right on, amazon…
Think about what it takes to produce a DVD for sale at Best Buy. You need metals for the ink, wood for the paper, petroleum for the plastic, SHIPPING (FROM CHINA) (ON A BOAT) and you can’t count on all of the units produced being sold. That is why movies cost 20 or 30 bucks CD’s 15, Games 60! And to be fair, Games are sold on contract for the most part with Microsoft, Nintendo, and Sony because they must purchase a development license for the consoles and the console manufacturers rely on third party sales to even make a profit on the gam hardware. Another checkmark in the positive for PC gaming (PRICES CAN FALL) with indie game development (like Super Meat Boy or Amnesia)
For instance, if you look at the company VaLVE, they make computer games (half-life, portal, counter-strike, team fortress), you’ll see that they used to make 5-7 dollars profit per unit at the brick and mortar. However when they began to sell games, still fully priced, on their online service, Steam, their profit margin moves up to 34-39 dollars per unit! (also Steve Forbes said that steam and VaLVE were worth more than Apple. They only employ something like 120 people and make around 4 billion in revenues! However, that is only an estimate as they don’t publish full numbers and aren’t publicly traded.)
The internet really is the epitome of anarchy. Free association with friendly cooperative development and distribution, all for very little resources.
The old market is useless and is only running up our trade deficit and sending our money overseas to the real production facilities and for some reason, our government wants to continue this. Piracy is healthy (at least for the U.S. consumer’s perception of economy or what is economic) because the internet means, not just freeDOM, but FREE. These RIAA types are making last ditch efforts to restructure the entire Internet to the cloud service to prevent my scenario from happening…my god…I think I know how Peter Schiff feels.
I’ll stick with bittorrent because:
there are no advertisements
There is only limit in quantity based on your bandwidth (buy more if you want more)
Boom.
I’d also like to thank the people in this thread for getting me to think about this. I’m gonna put this post on my blog http://eatingpropaganda.blogspot.com/ . If anyone wants to link =P