Service vs. Commodity

Not sure why, but I started reading a little basic economic theory and I think that if record companies and muscians read this stuff they’d discover how incredibly flawed the business model of today’s music industry is. The most basic model of economic theory is supply and demand. Given the advent of mp3’s and high speed internet connections, the supply of all music recordings automatically becomes near-infinite. With an infinite supply of something, the demand is going to be on pretty uncertain terms when it comes to cost. How do you determine the cost of something that can be replicated infinitely? Todd Rundgren says it’s time for music to be viewed as a service rather than a commodity. I’m inclined to agree.