View Full Version : Online Music: Rewriting the Score

May 19, 2005, 08:57 AM
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Category: Opinion/Interviews
Link: Online Music: Rewriting the Score (http://www.macbytes.com/link.php?sid=20050519095723)

Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

May 19, 2005, 10:33 AM

For a nominal monthly fee (or none at all), you can download any song you want and keep it for a period, say, 30 days. At the end of the period, you buy the song or you lose it. You'll be able to re-download it (maybe after a waiting period of, say, a week), but if you like a song well enough to download it multiple times, you probably ought to plunk down the 99 cents to keep it forever.

After a few years and after becoming wildly successful, iTMS is just a modest money-maker for Apple, but its real value is selling iPods. Is the analyst community so stupid that they see anything of value from a model that generates less revenue and is not at all connected to a device that can have a margin? Maybe. Probably.

The Yahoo!-Real Networks-Napster model is an illusory money pit. It's based on the same gooey foundation as the dotcom bubble. If Napster's losing money at $15/month, Yahoo! will be positively hemorrhaging at $6/month. These models are such that the more subscribers they get, the faster the company hurtles towards doom. It reminds me of the story of eMachines. I predicted to the day when eMachines would be delisted from the NASDAQ for having too little value to count. It was purchased for pennies on the dollar by some private piggies and the ordinary public investor was royally screwed.

PS: You don't have to thank me for that wonderful rent-to-own idea. Your stunned silence at the genius of it is reward enough. ;-)

May 19, 2005, 03:31 PM
For one, changing consumer behavior -- renting, not buying music -- will take some doing.

Can't wait to change my behavior. :D

May 19, 2005, 03:32 PM
Quote of the day

Says David Goldberg, vice-president and general manager of Yahoo! Music, "Subscription services will replace the entire music-purchasing experience."

Steve Jobs has lost the RDF crown