Late last week the RIAA dropped its lawsuit against Allofmp3.com. Shortly after the announcement places like Digg seemed to explode with cheers and merry making not seen since David slew Goliath. The problem however is the RIAA giant is not slain. It simply beat the smaller allofmp3 so continuously that there was nothing left to attack.

“The site is now defunct and out of business, the result of a successful anti-piracy initiative,” wrote a rep from the RIAA. In other words: “I’m tired of beating your dead and lifeless body. Thank you, come again.”

But is this really a victory for the record industry? While they have been fighting a war against the biggest and most successful of the Russian music sites it seems they now have many more targets. The loss of allofmp3 opened the way for at my last count no less than ten more Russian music sites. All of them offer music at the same unbelievably low price and most have flown under the RIAA’s radar so there is no problem funding your accounts at these sites.

The popularity of these sites is undeniable, but why? What makes them so attractive compared to huge contenders like itunes and zune market place? Simple, they have the right business model for the product they sell. They offer the product I want at an unbeatable price and don’t restrict how I will use it or what device I can load it on. If the RIAA is serious about increasing their profits, while simultaneously putting the rest of these Russian sites out of business then they should start using allofmp3’s business model for all of their digital content. Until that day however, RIAA I say to you: FAIL!