Economic theory ought to have taught you that there is more to bringing a product to market than how much is costs to duplicate that product after it's been invented.
The scarcity of good music is real, and it’s not found in its distribution model. You’re neglecting to acknowledge the complexity of the process that goes into the creation of that product in the first place. Sure, you can duplicate an MP3 with next to no cost. But duplicating a digital file that nobody enjoys is not the point. We’re talking about duplicating something that hundreds of thousands or millions of people want.
To even have that file to duplicate, we have to go back to the 5 year old kid who first picked up the guitar. Let’s account for the thousands of hours they practiced their craft until they were good enough to even begin to be capable of making something people will enjoy. The number of people who will enjoy a recording of just one guitar playing is very few, so they work with group after group of other musicians, failing to create a product that a lot of people like.
One day, at around 25 years old, this person stumbles into a room with 3 other people who have spent thousands of hours practicing their own instruments, and, for the first time ever, they start creating music that will have mass appeal. They spend months writing music together. Sometimes those people don’t get along, but they fight through it because the product they’re making is that difficult to create with other people. After months writing, and more months practicing, they finally have the blueprints for a product that people will enjoy and want their own copy of. But it’s just in their heads.
Now, these people either invest their own money, or they go through painstaking lengths to attract an investor by way of a record label. That record label, in exchange for an investment in them and for lending them connections and years of expertise, takes a significant percentage of the returns from their sales. Or, they go it alone, keeping the lion’s share of their sales, but having to invest all of their own money and their own time managing the business side of what they bring to market.
After weeks or months in the studio, working with a producer, several professionally trained production engineers, a mixing engineer, a mastering engineer, and other highly specialized experts in their field, they finally have a high quality recording.
Now, they take that recording, the sum total of 4 peoples’ years of practice, their creativity, talent, dedication and hard work, and they make a CD of it. They pay for duplication of CDs and make digital downloads available online. All the while this was happening, they were building up fans by touring, engaing in social marketing, fliering clubs, and doing anything else they can think of or get their friends to help with to spread the word about their upcoming album. When the album is ready, they hit the road, touring endlessly, stuck in a van with people who they may or may not even like that much, living on pennies as they try to make people aware of their music.
This, my friend, is the “assembly line”. It is not the duplication that happens in the computer. The product is assembled over 15-20 years of intense work, combined with a dozen strokes of luck culminating in the right people meeting, creating that product, and getting the necessary financing to roll it out to the public.
Now, you think it’s not worth $0.99 because it doesn’t cost anything to make extra copies? Even if that were remotely true, if you want this magical process to happen again, you might want to make sure these people can eat.