Digital World Dilemma
Manus Cooney, Napster's vice president of corporate and public policy, was quick to question Attaway's numbers, asking, "How many of those movie titles are available on Napster?" Cooney said that Napster was still in disagreement with the court ruling that requires them to screen its service for titles provided by the RIAA but would comply with the court orders fully.
Jonathan Potter, executive director for the Digital Media Association, argued that profits are a secondary issue. "The record industry has stopped talking about the loss of compensation and started talking about the loss of control," he said. Potter continued his argument by critically saying that instead of working with companies like Napster to create new business models, the RIAA was killing great technologies by drying up investment capital in the court systems. Attaway responded simply, saying, "I don't think order is a bad thing, or control." Sherman was later adamant about Napster and technology like it, saying, "Nobody can compete with free."
Some offered solutions to online business. Taking an optimistic tone, Tom Sulzer, founder and CEO of MoodLogic, Inc., said if you offer the consumer a valuable service, they will be willing to pay, but he said quality of the recorded material is not enough. "The quality sensitivity of those people (downloading audio) is decreasing," he said. His company provides back-end services to online retailers and companies that want to offer online subscription services, with monthly fees to access content. "$10- to $20-a-month subscription should be the sweet spot for that type of service," Sulzer said.