I was actually just wondering about this earlier in the morning as I read Tycho’s latest Penny-Arcade post. It isn’t the best solution for the music-savvy since it most certainly would involve DRM and less than optimal encoding/bitrates. HOWEVER, there are just so many iPod/iTunes users out there that even a DRM hobbled unlimited music subscription model HAS to stick with a significant number of people, right?
Past research and consumer data has “shown” that subscription models have not resonated well with the public. But what if that’s just due to a small userbase? Keep in mind, only Windows Media devices currently have access to subscription music. Who knows how the general iPod owning public would respond to such an offer?
My money’s on it being a raging success.
Read the Financial Times article (warning: requires registration) [ft.com]
Here are some highlights:
- Connected CDs are going to be a huge thing. Half of people put CDs in their computers, mostly for ripping, which is great, because they purchased the music legally. At that time, there’s a chance to connect with the user, sell more music, merchandise, etc. There are both promotional and upsell opportunities there.
- The biggest opportunity we have is to create an access model for the consumer where the consumer can consume music in a virtually limitless way by purchasing some kind of subscription or device that comes with access to the music. Those are the most exciting, and are gaining traction. Various models are being debated right now. The mobile phone will play a critical role, and the device will play critical role.
- There are so many options for consumers. We must be bold enough to throw out some of old models.
I gotta admit, the last place I expected to hear some rational, well-thought out analyses on the music industry’s current plight was from a Sony BMG executive. Mr. Hesse has managed to make me start to take the major labels seriously again. I don’t agree with everything he says in the interview, but he has enough good points that he has my respect.
Read the rest of Hesse’s interview [wired.com]
You pirate your own music.
At least, that’s what Benn Jordan (aka The Flashbulb) has done with his newest album, Soundtrack to a Vacant Life. Jordan’s taken the liberty of uploading his own album to a couple of torrent trackers, including renowned oink “replacement”, what.cd.
Why did he do this? According to his blog:
Well, they’ll be there in 24 hours anyway, and this way I can:
1. Be sure that people aren’t getting fakes.
2. Be sure that people aren’t getting bad rips (soooo many people have asked me about the “static track” on M³)
3. Be sure that people know where they can buy the album, or, “donate” to the artist by including an html file with a personal message.
Benn’s reasons certainly make sense from a practical standpoint. Any new album is going to find its way onto these torrent trackers soon after release, it’s just inevitable. And having information on how to buy the album from sanctioned sources is certainly better than having no information at all when your music is pirated. But is this a good business move for his fledgling record label?
Do I think Amazon MP3 has what it takes to take on iTunes? Sure. Amazon MP3 sells the better product to more possible customers at a better price ($0.89-$0.99 compared to the $1.29 of iTunes Plus). As long as consumers are educated properly and the service is marketed competently, there’s a very good chance this may be the one challenger to the iTunes throne to succeed.
But does this really matter at the end of the day?
No.
The future of music distribution is not in a la carte track sales. It’s in the pay-what-you-want model that Radiohead and Trent Reznor have pioneered. It’s in the value proposition that eMusic offers when you are getting $25 tracks for $9.99 a month. Neither of these are the ultimate solution, but they are steps forward. You have to look at how MOST people are consuming music nowadays. They do it via bulk through bittorrent or eDonkey or what have you. Selling DRM-free MP3′s for $0.89 each would have been a good start… seven years ago. In order to be the true winner of this sad drama, you have to be looking ahead of current consumption patterns. You need to take chances instead of playing catchup.
We’ve got a long way to go before this is finished.
Read the press release [businesswire.com]
