Last month I was moderating a panel on DRM and the music industry, among other things we discussed how the RIAA could improve its business model, what role independent labels will play in the future of music distribution and of course Apple and iTunes. Below is a clip from that presentation.

The panel was moderated by me and consisted of (from left to right)

Sam Tarantino: CEO of Grooveshark
Josh Greenberg: CTO of Grooveshark
Lee Perez: Artificial Studios
Dan Rua: Inflexion Ventures and Florida Venture Blog
Gavin Baker: President Florida Free Culture

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There is far to much footage to present here, but the major points were as follows.

Treat your customers with respect. The RIAA was initially established to ensure that licensing royalties were properly distributed. Their purpose is to retain the maximum value for their labels and artists. Alienating the people who are actually going out to purchase your music only serves to exasperate the distaste people feel for the music industry.

Invest in innovation. All of the money that is currently being spent on litigation could be used to develop new models and establish new business’ around those models. Instead of being so entrenched in a single idea of music distribution, the RIAA should try to diversify its holdings and use this new digital model to produce the maximum value for its users.

Develop Hardware. Everyone knows that the secret to music distribution is controlling the hardware that people use to listen to it. If the RIAA invested a significant amount of capital into developing new hardware solutions, it might be able to distribute music on its own terms and capture the market more easily.

Take Chances. The RIAA is still unwilling to take a sufficient number of chances, “everyone is trying to do their job,” but they seem to have lost the forest in the trees. The only way they will be able to break out of their current rut is to be willing to take more chances.

Distribute Licenses Universally. Instead of spending vast amounts of time vetting companies for distribution licenses, allow people to purchase these licenses at will. The RIAA is not making money in the current model, if they simply established a system where their content could be used through licensing they would at least have a viable business once again.

[Visit GainesvilleUnderground for more clips from the event]

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