Why Sony-BMG's Music Subscription Idea Won't Work
from the wrong-way-to-go-about-things dept
With the recording industry's latest infatuation with "subscription" music systems, you would think that maybe they would look at why none of the existing subscription services have done all that well. Of course, that would take a bit of foresight, which some of the industry's top execs proudly admit isn't something they're big on. However, following hot on the heels of stories of the industry bundling a subscription service with iPhones and iPods, Sony BMG has announced that it is working on its own damn subscription plan, with details that scream "failure in waiting." Similar to the Apple rumors, you would lose songs if you ended the subscription, though you might be able to keep 30 or 40 songs (again, same as the Apple rumor). That would mean some kind of DRM. Yet, the story also claims that it will work on iPods, which means either that it's DRM-free (which disagrees with the earlier statement) or that Apple is licensing its FairPlay DRM (something the company has refused to do to date).But the bigger problem is simply the fact that this would fragment the market. No one wants to shop at one store for Sony BMG musicians, another one for Warner Bros musicians, another for EMI musicians, another one for Universal Music musicians and yet another for indie musicians. And, at the price point Sony BMG is talking about ($9 to $12/month) if you want subscriptions to all the fragmented stores, you end up pay $75 to $100/month for DRM-encrusted subscription plans. That's not going to work. Time to go back to the drawing board and not come up with ideas that were discarded five years ago.
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Filed Under: music subscriptions
Companies: sony bmg
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Obsolete thinking of How to Compete
To phrase this differently companies seem choose to compete in the following proprietary manner: iTunes versus Zune OR HDDVD versus BlueRay. Competition should be based on the competitors agreeing to one type of MP3 Payer or one type of HD DVD player, THEN competing on who makes the best product and provides the best customer service.
To reiterate, those in charge of marketing are addicted like drug addicts in a self-destructive death spiral. The only fix (solution) they see is even greater marketing efforts to push propriety niche products of limited viability.
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This is why
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+1
They would have to win the international game of whack a mole to make that plan feasible, & even then, people could go back to just handing off physical copies, like the old days. There is no DRM that can't be beaten, there won't be, ever. If you can see it or hear it you can capture it. Computers are here to stay, they are digital manipulation devices.
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Solution That Fixes All Problems!!!
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An endless cycle
Rather then trying to teach an old dinosaur new tricks, wouldn't it be better for these groups to license their music to third parties? These third parties could aggregate all the music into one place, and compete with each other directly on how music is delivered to the customer to help drive innovation of service.
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Wait...Subscription?
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Why subscription prices are all wrong
An appropriate subscription price is not how much a consumer would pay for access to the entire catalog, but instead how much would a consumer pay for access to the entire catalog that they don't already own.
For most people this would amount to how much is it worth to get access to new music released in a month, plus some amount for the right to explore a back catalog in the hopes of discovering something they like but don't have.
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