Some interesting tidbits from a recent LA Times Interview with Napster founder Shawn Fanning:

Since Napster came out in 1999, the music industry has undergone a seismic shift. How do you think that industry is doing now?

I definitely think it’s in rough shape. The margins for digital music are awful for everyone other than the record companies. You can’t do anything innovative because of all the [licensing] permissions involved. Ultimately, the industry doesn’t look at technology as an opportunity. One of my biggest personal disappointments is that the ability for people to discover interesting and obscure music has faded. That was one of the reasons I made Napster.

Do you think the same thing will happen to the game industry?

No. Where the music business saw technology as a threat, the gaming industry embraces it. Games are built on new technology. I think games are moving toward a subscription model or a service-based model where it’s less about the upfront purchase than about the monthly fees or the micro-transactions people make to buy virtual goods. The gaming industry has handled the transition to online a lot more gracefully than the music industry.