File-sharing âthievesâ were also iTunesâ biggest spenders
Very interesting comments by former EMI Chief Operating Officer of New Music and President of Digital Business, Douglas C Merrill.
Delivering his keynote address at this weekâs annual CA Expo in Sydney, former Google CIO Douglas C Merrill added to the growing belief that punishing and demonizing file-sharers is a bad idea. Merrill, who after his Google stint joined EMI records, revealed that his profiling research at the label found that LimeWire pirates were iTunesâ biggest customers.
Yesterday, during his keynote speech at the CA Expo in Sydney, former Google boss Douglas C Merrill said that companies stuck in the past risk becoming irrelevant. He also had some very interesting things to say about pirates.
Merrill, who was Chief Information Officer and Vice President of Engineering at Google, left the search giant in 2008 after being poached by EMI, a key member label of the RIAA.
At EMI he took up the impressive position of Chief Operating Officer of New Music and President of Digital Business, despite admitting this week that he knew the music industry was âcollapsingâ.
âThe RIAA said it isnât that we are making bad music, but the âdirty file sharing guysâ are the problem,â he said during his speech as quoted by ComputerWorld.
âGoing to sue customers for file sharing is like trying to sell soap by throwing dirt on your customers.â
But those âdirty file-sharing guysâ had an even dirtier secret. During his stint at EMI, Merrill profiled the behavior of LimeWire users and discovered something rather interesting. Those same file-sharing âthievesâ were also iTunesâ biggest spenders.
âThatâs not theft, thatâs try-before-you-buy marketing and we werenât even paying for it⊠so it makes sense to sue them,â Merrill said, while undoubtedly rolling his eyes.
That same âtry-before-you-buyâ discovery was echoed in another study we reported on last week which found that users of pirate sites, including the recently-busted Kino.to, buy more DVDs, visit the cinema more often and on average spend more at the box office than their âhonestâ counterparts.
When he was hired by EMI in 2008 he said this:
âFor example, thereâs a set of data that shows that file sharing is actually good for artists. Not bad for artists. So maybe we shouldnât be stopping it all the time. I donât know,â Merrill said.
âObviously, there is piracy that is quite destructive but again I think the data shows that in some cases file sharing might be okay. What we need to do is understand when is it good, when it is not goodâŠSuing fans doesnât feel like a winning strategy,â he concluded.
Not really surprising then that EMI have given him the arse less than a year later.

Forging ahead talking little notice of the doubters, you managed to secure the selection in the nominally safe Labour seat of Waitakere, despite not being part of the the gaggle or self serving. A triumph for someone who is not actually a proper westie, and is competing with someone who is a westie right down to her tart cart.
