Comment This would Never work... unless (Score 1) 475
The way it's written up in the Slate article, I would never want to participate in this scheme. Who would decide when the price would go up or down and by how much? the Record companies? Apple? The reason stock exchanges work is peopel get ownership of a real product (ie. a company) when they purchase stock. As written in slate, this Sounds more like a plan to get the most profit out of a song, squeezing as many consumers as possible. You want the new 50Cent? that'll be 4.99 oops 5.50. This would never work, unless...
The Record company actually floated parts of the song rights on the market. They might float 30-40% of Jay-lo's new album. J-Lo herself would own 10-20%, and the record company would still own 40-50% of the track, so they'd get about half of the profits from the track. Their could be an IPO and it would otherwise work as a normal stock with a certain percentage going towards dividends for stock holders and the rest being reinvested to sign new talent and groom new artists. As tracks get older the record company could float more of the track to raise profits, or make strategic buybacks, etc...
This would be a real market. Consumers would have a real product, actual ownership of the songs they adore.
The Record company actually floated parts of the song rights on the market. They might float 30-40% of Jay-lo's new album. J-Lo herself would own 10-20%, and the record company would still own 40-50% of the track, so they'd get about half of the profits from the track. Their could be an IPO and it would otherwise work as a normal stock with a certain percentage going towards dividends for stock holders and the rest being reinvested to sign new talent and groom new artists. As tracks get older the record company could float more of the track to raise profits, or make strategic buybacks, etc...
This would be a real market. Consumers would have a real product, actual ownership of the songs they adore.
