Consumer content companies - lacking clue?

I just saw a couple of items on Fark that got me to thinking: for companies dealing with consumer content (music, movies, literature, that sort of thing), there sure seem to be several companies out there lacking a clue as to how the consumer thinks.

The first item up for bids... Internet radio. The organization in charge of setting royalties for various "broadcast" uses of copyrighted music in the U.S. seems intent on destroying Internet radio by setting rates well in excess of what's charged terrestrial radio and satellite radio stations... often to the point that the fees would exceed what the stations bring in. I can only assume that the music companies behind the organization are trying to drive users back to channels that they're "comfortable" with, like CD purchases and such... but is that realistic? This is the Internet we're talking about, after all... and there are many countries out there with less restrictive, yet still legal, licensing structures out there... why wouldn't consumers (and the companies that aggregate online stations for consumers) just look there for their content, cutting the U.S. royalty group out of the equation entirely? Isn't a smaller slice of the pie better than no slice at all?

Next, let's look at Blu-ray video... there seems to be continuing confusion from that camp as to why consumers aren't jumping from DVDs like they did from VHS many moons ago. Here's a hint: video quality is nice, but, past a point, it's not a game-changer, especially for pre-recorded content. DVD has many more benefits over VHS... to name a few: never needing to rewind, chapter search, multiple audio tracks (including foreign language, surround sound, and commentary tracks), smaller and less expensive to manufacture media, more durable media, and quieter players (due to fewer moving parts). If you want to sell higher-quality video, look at that list for a start, and see where you can improve on DVD (for example, one reason I'm loving my Roku box for Netflix video is that, since it streams video from the Internet, there's no moving parts, so no additional background noise). Once you've found what you can improve, price it competitively (another place where the Roku box shines), and it might just sell. Otherwise, you're doomed to fill an enthusiast niche... kind of like Laserdisc back in VHS days.