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In defence of newspapers and serendipity
Actually what if it was an iPod-combination-cd-burner ? Labels could control the digital rights, users could make mix cd's easily (labels should concede users the right to make a reasonable number of copies for this usage), and it'd be different enough from the iPod to possibly trump it. Sony is looking for a hit in portable music to counter the iPod, and their brand name would make the units very popular. The labels however, should buy and distribute the units, as they are closer to the end consumer and they want to control the final music sales mechanism. Think of it as a "one laptop per child" for digital music.
away music anyway, that's already happening -- they just need to accept it
and find a way of working that into their business models.