Bob Lefsetz reader Thomas Wironen writes that music is a service, not a product, and P2P is both the problem and solution. I agreed and have long written on this.

My only clarification is on the cause. P2P is only a facilitator. The slippery path started with the digitization of music, its first explosion courtesy of the open MP3 format. People were ripping and trading songs a few years before Napster debuted. Music transitioned from controllable scarcity to uncontrollable abundance. And the record business still doesn't understand it.

His letter:

Thomas Wironen:

Music is no longer a product. Peer-to-peer file sharing has virtually made CDs for people of my generation pointless. Now it is about the experience. If my friend or a blog I read says that I should hear a song. It is no longer about going to the record store to find the track it is about the fastest and easiest way to hear it. I don't care about what the CD case looks like I want to hear the song, the music.

The idea of music as product is inhibiting sales and curtailing the customer experience. Record labels have been selling music as a product since the first records were stamped. They were able to have their artists record music in order to fit it on a certain product such as a CD or record and sell it to the consumers not only selling a product but also turning their artists into products. The labels were able to make a substantial profit on this easily manageable and controllable process. The musician, the art, and the music were all product-centric. Peer-to-peer file sharing has challenged this notion.

File sharing provides the opportunity to treat music as a service. Instead of providing the music in neat little packages you can provide the tools for the experience. No longer is the consumer paying for each individual track but they are paying for the experience of obtaining the music. The solutions for monetizing file sharing are all based on music as a service. You are paying for access to the music such as you pay for access to cable. The provider with the best content will win customers.

Legalizing file sharing would benefit everyone. There would be fair compensation for the artists and the labels, the public would not have to fear lawsuits and still have unbelievable access to music, and the creators of technological devices would still have the content needed to attract subscribers to the ISPs, the computers, MP3 players, and any other hardware. Legalizing file sharing will provide a lucrative service and create a better fan to artist experience overall. Like many other industries in the United States, the record industry is becoming a service industry. Up-to-the-moment access to music will be the most important service provided deterring from product-centricity. It is time for the major labels to embrace technology to secure a future.

"Bob Lefsetz is the author of "The Lefsetz Letter." Famous for being beholden to no one and speaking the truth, Lefsetz addresses the issues that are at the core of the music business: downloading, copy protection, pricing and the music itself. His intense brilliance captivates readers from Steven Tyler to Rick Nielsen to Bryan Adams to Quincy Jones to EVERYBODY who's in the music business. Never boring, always entertaining, Bob's insights are fueled by his stint as an entertainment business attorney, majordomo of Sanctuary Music's American division and consultancies to major labels."

That's what Bob says about himself. I find him genuine, accurate, and fun to read. I adore his viewpoint and writing style, and occasionally run his ramblings. You may directly subscribe to his newsletter here.

Leftsetz occasionally publishes letters from his readers. Their deep experience provides authenticity and detail on the record biz. We occasionally publish them as well.