Pali Research analyst: “Music should be free.”
via Seeking Alpha
Warner Music’s share price has taken a beating after Pali Research analyst Richard Greenfield cut his rating on the stock from sell to neutral. His reasons?
â€œNo matter how many people the RIAA sues, no matter how many times music executives point to the growth of digital music, we believe an increasing majority of worldwide consumers simply view recorded music as free,â€ he asserted in a research report Thursday morning. â€œA new model for music consumption must emerge and that model most likely involves DRM-free downloadable music at no cost to consumers, fully supported by advertising.â€ But as Greenfield notes, â€œthe music industry is not ready to endorse such a move at this point, and even if it was, the economic model transition will be incredibly painful.â€