Thursday, December 21, 2006

Signs of Global Warming

Today about three feet of snow has come down on our town. This is a sure sign of global warming. The wind has even blown snowdrifts up to six feet. Beware of the signs! The end is near! We're all gonna die!!!

(not really)

Tuesday, December 12, 2006

Why music sales are falling.

The music industry blames their falling sales on piracy, but in reality, the cause of this is economics. People do not want music for $1 a track. Most people want it free, and the people who are willing to pay for it aren't willing to pay nowhere near $1.00 a track. This is why the people who download music illegally do so, that particular supply is within the range they are willing to pay. In the end there will always be people who aren't willing to pay money, and in all likelihood the supply for those will also be there. But for those who might be willing to pay $0.10 per track are currently using the free supply. If the tracks offered were more desirable the demand curve would intersect at something better than $0.10. The best action for the music industry would be to sell at the optimum price of $0.10, or produce a more desirable product to increase demand, though I doubt the optimum price would be above or near $1.
Here is an illustration in case you need to see it.

*the author is by no means an economist and some of the preceding may be inaccurate but the general idea is the same, reduce music prices and have better music if you want good sales