Music in pirated form can be enjoyed better than stolen software, so some antipiracy protection will be required. But watermarking may be enough of a deterrent. Whatever we do, it should not have the effect of making it harder than it is today to enjoy music. Respecting consumer choice may also require offering multiple quality tiers. All sound does not need to be Red Book quality for us to make money.
History proves that statement.
For fifty years or more, the industry has always tolerated, indeed supported, quality tiers. AM Radio, the worst for music quality, has been the medium we endorsed for marketing our most valued product - new hits. Today s radio may be the Internet. A template, like radio, will still work in the new era. But we should expand it.