Let’s say you can buy a new CD for $15 and sell it used for $5. And let’s say that you can buy that same CD in MP3 format for $10 but you can’t sell it used at all.
If you could sell an MP3 used, wouldn’t you be willing to pay more in the first place? Like, for example, $15?
What I’m thinking about is how much a secondary market for MP3s could do to grow recording industry revenues as a whole. It could be enough to have a substantal impact.
See also: insane-tastic startup with annoying name