- Question: Why aren't songs, movies or ebooks given for free (+ads) like TV?
i. Sub-question Every minute, people are pirating and there is no stopping that. If people see 0.99 for a song on iTunes and 0.00 for a song on a torrent site, I don't see anything stopping majority of people from going to that torrent site in the same way I don't see anything stopping them from going to a library or asking a friend to borrow a book instead of buying the book in Borders or taping a song off the radio. In particular, there's betamax. It was thought illegal until this case or something. (Anyway that's about legality not economic benefit/loss.)
So, why don't companies, like the RIAA or MPAA, release their songs, movies or ebooks for free but put in ads kind of like how cable TV was/is done? In my opinion, companies incur a huge opportunity cost (eg 'JK Rowling has lost millions of dollars, because she refused to let Harry Potter come out in ebook form. Newsflash: you can get ebooks of all the Potter books from pirate sites. She didn't cater to her fans, so her fans catered to themselves.').
ii. Sub-question What I guess is that they think they can actually stop piracy with things like DRM or scaring people into believing that they will be caught even though such is unlikely so as to keep making money on iTunes, Netflix or whatever.
However, I read that in a documentary, Chairman and CEO of the Motion Picture Association of America (MPAA) Glickman 'concedes that piracy will never be stopped, but states that they will try to make it as difficult and tedious as possible.'
So he ADMITS piracy cannot be stopped, which makes my guess wrong. So what, are the RIAA and MPAA actually irrational?
- Question: What are some economic concepts or theories involved in file sharing/piracy besides opportunity cost and free rider problem?
This can also extend to games, apps, etc.
To clarify, I don't mean to ask why songs, movies and ebooks are not given ONLY for free. They should continue to be given for payment since there will still be demand. If people want to buy CDs, DVDs or ebooks, attend concerts or go to cinema before songs, movies and ebooks would be given free, they would likely not want to do less if ever songs, movies and ebooks would be given free, I think because it seems that if people like the cinema or concert experience, don't have Internet access or like smelling books, they will continue to purchase as much.
My question is not 'Why do people go to netflix instead of torrent?', a question focused on the consumers given the law and the companies' decisions. My question is instead 'Why aren't songs, movies or ebooks given for free?', a question focused on the law and the companies' decisions given, well, Pirate Coelho's 'Sharing is part of the human condition. A person who does not share is not only selfish, but bitter and alone.'
Btw I just discovered artificial scarcity.