"You cannot compete with free" is a commonly held perception of the music industry in its fight against piracy. Piracy must be tackled with harder and heavier penalties. But is 'free' what the industry is competing with?
Innovation
Long before the Apple iTunes Music Store came along, angry consumers were already sharing music online. An adolescent in an attic programmed the Napster service (the precursor to services like Kazaa and Limewire) and demonstrated that there was a market which, along with its billions of revenue, was rejected by the industry. For the consumer it was a logical step: content could be bought in the same way the Internet worked, without international shopping hours. Albums that were never released in the Netherlands could be on your hard disk ten minutes later. Films and series that were not released in the Netherlands could still be viewed immediately.