Seems like a pretty silly thing to me: why EMI thinks that online storage of music files is a problem. The funny thing is that they go after little mp3tunes.com. Sure Michael Robertson continually pokes the labels, that is a good reason for them. It certainly isn’t the money, the service is hardly thriving. In fact, the other online music storage companies have disappeared. Anywhere.fm was purchased recently and Ezmo shut down. Neither had a big following. If EMI really thought storage was bad and wanted it to stop, then they should go after AOL’s XDrive, Apple’s .mac, or Microsoft’s new Skydrive, or Amazon S3 (back end for Anywhere.fm). We at MediaMaster have not heard from them either. All of the above have big “My Music” folders at the top level of them, that would seem to indicate that people place their music files in them
A label going after one high profile small company sends shudders through the small business world. Venture funds run screaming from media startups that actually touch content. Knowing they have to maintain a huge legal slush fund for the possibility that there will a lawsuit is reason enough to not fund innovative little companies that deliver what consumers want. This is storage of something most users do own, the DMCA rules allow for takedown of accounts that are known to be illiegal, why not use that system, that’s how it was designed. Assuming that everyone is bad and has illegal files hardly seems like a way to regain trust of consumers.
And consumers do want these services. I would bet there more than a million customers spread across these storage locker sites. Maybe look at the world a little differently, treat these services as subscription sites that can work. Instead of 2 million tracks owned by the labels, expand it the other tracks that aren’t on that big list, and get paid for a service with truly unique offerings. Users will pay, and the labels can make some money too.
If I buy a hard drive to back up my files at home, there is not much difference. If I then share that hard drive in my home, that is arguably family ownership of content. NAS devices are now very popular as well and beg to be connected for outside access. You still would only access your own files, since your Quicken files are somewhere on that drive as well. Why don’t they sue Seagate, Hitachi, Western-Digital, and any other drive maker. Oh, right, they tried that; to levy a tax on all iPods and mp3 players that would pay for their content that all users have stolen.
They also have to admit that the old days of billion dollar returns are gone. Welcome to the world of razor thin margins that every other industry in the world has learned to deal with over the last decade. Seems like plenty of business thrive still. In fact, an industry that has practically no cost of goods sold should be able to do more than thrive…

Well, actually, 10,057,527…and climbing quickly….