We recently posted an interesting study talking about how greater file sharing of leaked albums had a specific (if small) causal impact that resulted in higher sales. I thought it was an interesting area of research, though one where a lot more work needs to be done. Following that, however, there was an interesting exchange on Twitter, mainly by former Warner Music exec Ethan Kaplan, who didn’t seem to think the concept was controversial at all — and instead that it was obvious. As he stated:
Let me simplify this answer: YES IT LEADS TO MORE SALES. DEMAND = DEMAND W/ $$$$$$ IF PRODUCT GOOD.
He then expanded on that idea (edited slightly to de-Twitterize):
Simplified further: MUSIC BUSINESS (RECORDED): your product isn’t diamonds mined from a secret mythical land.
And beyond broadband/napster/whatever, what hurt you the most is PEOPLE FIGURED THAT OUT. Cynicism caught up with you.