The Economist on MGM v Grokster

The Economist, fresh off their SemaCode scoop, rips in to the music industry’s legal “strategy”:

But even if the entertainment business manages to coax more users into paying for legal downloads and succeeds in court against Grokster and StreamCast, its problems are unlikely to go away. True, a Supreme Court ruling in the industry’s favour would put paid to other P2P services. But it is not clear that curbing illegal downloading will translate into extra sales for the music business. A rush into legal downloading would hardly be good for sales of CDs: some cannibalisation is inevitable. And perhaps the decline in global sales is indicative of a far greater problem for the music industry—consumers simply think that many of its products are just not worth paying for.

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