7 Keys to Marketing Genius: Napster
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
For decades the record industry held a technological chokehold on the distribution of music content. Because they had exclusive control, record executives decided to charge large sums of money for their product. While perfectly legal, this is not a good way to build relationships with consumers. Ordinary citizens had neither the technology to create their own access to popular music nor the organizational ability to defy the practices of the record companies.
With the World Wide Web that is no longer the case. Napster devised a way for individuals to share musical content from peer to peer over the Internet. Not only has new technology freed the access to musical content, it has also provided a way for formerly disconnected people to communicate, share, and lobby for change of music industry practices. The sharing of copyrighted musical content is illegal, but most consumers feeling like they have been fleeced by the record companies for years justify their actions. The record companies charged exorbitant rates for musical content through monopolistic practices for decades and thus angered their customers. Now these companies are scrambling to convince customers they should pay for their music again. Good luck!
Similar industries would be wise to learn this lesson. Doctors and lawyers have used the same distribution methods for generations. By limiting access to information, these disciplines have been able to charge high fees for their expert advice. Today consumers can find much of this information on the Internet for free or at a fraction of the cost.
I injured my foot and there was a great deal of swelling. I called my doctor’s office several times to have it looked at by a professional. While I was waiting for someone to call me back from the office, I jumped on the Internet website WebMD.com. In a few minutes I had diagnosed the problem and was treating the injury. When the nurse called me back a few hours later and I described the symptoms, she began to give me treatment advice. As she was telling me to elevate it and keep ice on it, etc., I started finishing her sentences for her. She asked, “How do you know what I am going to say?” I told her that I had already looked up the problem on the Internet and was treating myself.
I am not recommending forgoing medical treatment for selfdiagnosis, but it proves the point that we are not as reliant on these industries for information as we used to be. Doctors, lawyers, and other purveyors of information better adjust their practices and become more consumer friendly, or they may wake up to find themselves “Napster-ized” one day.