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Digital Noise: Music and Tech

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December 28, 2009 6:00 PM PST

10 music-tech trends that will shape the next decade

by Matt Rosoff
  • 22 comments

Bill Gates has said that prognosticators often overestimate the amount of technological change that will happen in a year, but underestimate the changes that will take place over a decade. With the Zeroes coming to an end this week, and Steve Guttenberg's recent column questioning the viability of recorded music in 2020 as inspiration, here's my pick of 10 trends in music and technology that will shape the next decade.

Will the original iPod become an object of fetishization in 2020, like vinyl records are today?

(Credit: Apple Computer, via Wikimedia Commons)

Songs instead of albums
Musicians will always find ways to record their music--it's a fundamental drive, like painting for a painter or writing for a writer. But I agree with Guttenberg that fewer musicians will release suites of songs organized around a common theme or sound. As much as I love my long-playing records, they arose out of economics rather than art--they were a convenient way for companies to bundle multiple songs (particularly songs that might not have sold as singles) in an affordable package. With digital files already taking the place of physical recordings, there's almost no economic reason for the album to persist. By 2020, the concept of the album will be an anachronism with a few vocal adherents--like vinyl records are today--but most music will be released and consumed as songs.

Streams instead of downloads
Where did we get the idea that digital music has to be downloaded? It started with the CD and file-trading networks--content owners wouldn't sell us music in a form that could be consumed on our computers, so we ripped our own and swapped the files through Napster and its brethren. But now, every time a new song or album comes out, or we rediscover an old act, we have to rip or download the recordings, then transfer them to whichever device(s) we want to play them on. There's got to be an easier way!

If you had access to every song ever recorded, on any device, from any location with an Internet connection, wouldn't you rather pay for that service than buy a new CD or two every month? People say they want to own music, but when it's just a digital file, what do they want to own--a collection of ones and zeroes sitting on a segment of their hard drive? Why bother?

I think the real problem is that today's streaming services don't give you every song ever recorded and don't work on every device, and broadband data access--particularly wireless--is not ubiquitous. Those flaws stem from business problems (licensing, DRM, format incompatibility, and insufficient broadband infrastructure) rather than technology problems. And the business problems are gradually being resolved--look at the introduction of Rhapsody and Spotify for iPhone, and Apple's acquisition of streaming music service (and music locker) Lala. By 2020, most professionally recorded music will be consumed as on-demand streams and people won't pay by the track.

In the cloud rather than on hard drives
Some songs will never be available on demand--think of tracks from friends or obscure independent acts, or live covers (where licensing can be incredibly complicated, involving multiple performers and songwriters). But as users become accustomed to listening to more professionally recorded music on demand, they'll expect their personal collections to be available in the cloud as well. After all, who wants to spend time backing up a 120GB music collection on an external drive, or choosing particular recordings to eliminate in order to clear space on a cell phone?

This is where Apple's Lala acquisition really makes sense--imagine if iTunes served not only as an on-demand music service but also as a locker for songs you'd previously downloaded, ripped, or obtained elsewhere. Suddenly, the 16GB of storage on an entry-level iPhone would seem generous instead of paltry.

Fidelity rather than file size
Once our music lives in the cloud, we'll no longer have to worry about running out of space on our local drives or devices. Microsoft's SkyDrive already offers 25GB of online storage for free, and I could easily see that increasing one-hundred-fold by 2020. That's right: free terabytes of storage. It'll take a little bit longer, but eventually bandwidth--even wireless bandwidth--will increase to the point where streaming lossless digital files makes sense. Listeners will rediscover what they've been missing--detail in the midrange, and tons of information at the low and high ends of the spectrum--and the era of the MP3 will be looked back (and down) upon as the dark ages of audio quality.

Extras become standard
Again, with concerns over storage gradually disappearing, what's to prevent artists from packaging their music with artwork, lyric sheets, video outtakes, and even interactive applications? Today's artist-specific iPhone apps will become standard. Casual fans will stream a couple songs for free. Hardcore fans will pay to download the entire app and pore over it obsessively.

Production rather than consumption
Digital technology has already democratized the recording process--what used to take tens of thousands of dollars and a professional studio can now be accomplished with a laptop and a free program like Garage Band or Audacity. The results usually don't sound as good, but the experimentation process is fun, and sometimes a gem emerges. Digital technology and the Internet have also made promotion and distribution far easier than they were a decade ago. By 2020, music fans will spend almost as much time creating and sharing recordings with their friends as they do listening to professionally recorded music. Don't believe me? Think of this: 10 years ago, writers were a comparatively rare breed. Now, everybody's got a blog, or at least a Facebook page. In another 10 years, everybody will be a musician--or at least a recording artist.

Suggestions rather than searches
In a world of on-demand music in the cloud, search will become vitally important. Users will want to be able to find songs not only by title, album, or artist, but also by a few snippets of lyrics, or even by humming or playing part of a melody. (Imagine a combination of the voice search function available on Google Mobile with an advanced version of technology like Shazam, which can identify recorded music from a few snippets.) But search is only part of the question--once everything's available, how will users decide what to listen to? By 2020, personalized recommendation services, like those provided by Pandora, Slacker, and MOG, will become even more important than search, and will have to be integrated into any on-demand music service that hopes to survive.

Festivals rather than big concerts
Live music is already a long-tail world--with the exception of old, established acts and the very occasional pop sensation, very few bands can fill large arenas or football stadiums. This trend will accelerate as the last bands from the golden age of radio retire, labels take even fewer big promotional risks, and the market continues to fragment under the explosion in recording releases. In 2020, no single act will be able to sell 50,000 tickets at Qwest Field like U2 hopes to do this summer. Instead, the only shows that will pack large arenas will be festivals, where listeners can pick and choose among dozens of acts and classes of entertainment--just like they'll be doing online.

Spectacle rather than personality
With recording revenue plunging, bands must draw fans to their live shows in order to make a living. The common wisdom today dictates that musicians need a personal connection with their fans. They must blog, tweet, maintain their MySpace and Facebook profiles, and generally act like your next door neighbor who's always pestering you to see his band. There's a word for receiving "personal" messages from your favorite 100 bands--it's called "spam." Eventually, this cloud of self-promotional noise will dissipate, and will be replaced by old-fashioned word of mouth. Only acts that put on a great show--not just singing and playing songs, but entertaining in the old-fashioned sense of the word, with video and stagecraft and humor and spectacle--will cut through the noise. Bonus points for the first act that somehow integrates an audience-accessible game console into their act.

Retro takes on a new meaning
In 2020, the original iPod will be almost 20 years old. As the music world is overtaken by a nearly infinite selection of high-fidelity music, streamed over super-fast wireless connections to increasingly inexpensive portable devices, hardcore nostalgists will drag out their first-generation iPods and fill them with treble-heavy 120kbps MP3s. Meanwhile, grandpa will still be down in the basement with his collection of LP records and his lava lamp.

December 21, 2009 1:30 PM PST

The five most welcome digital audio products of 2009

by Matt Rosoff
  • 18 comments

The economy took its toll on digital audio in 2009, with CD sales continuing to decline (even as vinyl makes a resurgence), digital start-ups going bankrupt or disappearing after takeovers, and labels expressing dissatisfaction with would-be digital saviors like MySpace Music. Even so, there was actually quite a lot to cheer this year. The following five products aren't necessarily the best, but to me, they did the most to move the state of digital audio forward in 2009.

Outside the tech press, the Zune HD didn't get the love it deserved in 2009.

(Credit: Microsoft)

Windows 7. Microsoft appears to have recovered from Vista with a new OS that runs efficiently, looks good, and satisfies users. Released on October 22, the latest version of Windows also includes some important new features for digital audio lovers. I was pleasantly surprised by Microsoft's decision to support for Advanced Audio Coding (AAC), which is the default format used by Apple's iTunes. With this simple move (along with native H.264 video support), Microsoft has finally acknowledged that Windows Media isn't taking over the world any time soon, and will hopefully move to the much more sensible strategy of making Windows a sort of "Swiss Army knife" of digital media. In addition, the new Remote Media Streaming feature lets you access the media library on your hard drive from any PC over the Internet, reducing the need for third-party solutions like JukeFly or online music lockers like Lala. Plus, for professional audio recording, Windows 7 is much more stable than Vista was at launch. Love it or hate it, Windows is still the OS used on more than 95 percent of computers worldwide, and Windows 7 is probably going to be around for a long time--like XP was--so these advances, however overdue, are major news.

Spotify and Rhapsody on iPhone. Music fans have been waiting for the celestial jukebox--the ability to listen to millions of songs on demand from anywhere--for years. In 2009, the music industry finally started coming around to the idea that on-demand access to millions of songs could be the digital business model that saves it. Nowhere was this clearer than in Apple's decision to approve iPhone apps from Spotify in August and Rhapsody in September. These two subscription services--Rhapsody in the U.S., Spotify in Europe--give iPhone users access to millions of songs, on demand, for a few bucks a month. Single-song downloads have been great for Apple, helping iTunes become the top music retailer in the U.S. starting in 2008, but the company may be coming around to the idea that subscriptions--or at least on-demand streaming--represents the future, as evidenced by its acquisition of Lala earlier this month. When Apple finally takes the plunge, Rhapsody and Spotify subscribers can be smug, knowing that they've been able to stream songs to their iPhones since 2009.

Sonos S5. I've been singing the praises of Sonos's multiroom home-audio system for a couple years now. There's no other equivalent system that offers such easy set-up, solid sound, reliable streaming (thanks to its dedicated wireless network), and slick user interface--including an iPhone controller. The only drawback has been its relatively high price of entry, especially compared with cheaper competitors like Logitech. The release of the Sonos S5 this November (read the CNET review) is a major step forward in affordability, giving you single $399 device--receiver, amplifier, and speaker, all in one--that lets you get started down the Sonos path. You'll still need a $99 bridge if you have a wireless home network and want your S5 to be in a different room than your router, but the S5 is Sonos's most affordable product to date, and a move in the right direction for multiroom digital audio.

iConcertCal for iPhone. For live music fans, nothing's more frustrating than missing a show because you happened to miss the listing in your weekly paper. This year saw the release of several iPhone and iPod Touch apps for finding and tracking local gigs, but my favorite remains iConcertCal, released in July for $2.99. (It was briefly removed from the iTunes Store earlier this month to fix a bug, but it's back now and working fine.) Unlike other gig-finding apps, iConcertCal doesn't require you to enter a list of artists you want to track--instead, it grabs all the artists whose music you have on your iPhone. If you want an even bigger selection, you can download the free iConcertCal desktop add-in for iTunes (useful in its own right), link it to your iPhone with a user name and password combination, and the iPhone app will then track every single artist you list in iTunes. You can also use it to see all local shows happening in the next couple of days.

Zune HD. At last! The latest version of Microsoft's portable music player, released in October, has everything its predecessors lacked. Classy industrial design. Touch screen. Gorgeous on-screen interface that makes it easy to find favorite songs or music you've recently added and scrolls through images of artists as you play their songs. Well-designed PC client software that does everything you've come to expect from iTunes and looks way better doing it. It's not perfect--the browser and lack of app store are kind of weak, and I'm still bothered by what sounds like a bass roll-off and lack of oomph in the midrange--but the Zune HD has so many features that iPods still lack, like wireless sync, a built-in subscription music service (with 10 permanent monthly downloads to boot), and the ability to add songs to a currently playing playlist, that it makes my iPods seem a bit out of date. Unfortunately for Microsoft, the Zune brand is still tarnished by its initial weak launch, and outside the tech press, the Zune HD didn't get the love it deserved. Perhaps when (if?) Microsoft moves these features into the next version of Windows Mobile, we'll finally see Microsoft considered as a viable competitor to Apple's mobile music juggernaut.

Tomorrow, I'll follow up with the five least welcome digital music products in 2009.


December 2, 2009 2:11 PM PST

MOG looks and sounds good, but has big gaps

by Matt Rosoff
  • 9 comments

MOG offered me a free trial to its subscription-based streaming music service, MOG All Access, which launched on Tuesday. The service costs five bucks a month, and gives you unlimited on-demand streams of more than six million songs from all four major labels and plenty of indies. The site is trying to differentiate itself from competitors like Rhapsody and Napster with high-quality streams--all songs are 320kbps MP3s--and some fairly sophisticated music discovery features, like playlists posted by musicians (David Byrne got the featured spot on the day of launch) and other fans with similar tastes to yours ("Moggers like me").

(Credit: Screenshot)

I've been sampling the service for about an hour, and I do appreciate the sound quality (although better volume-leveling between songs would be nice) and recommendation services. And I'd like to thank the designers personally for the ability to add any song to the already-playing queue--a feature I love on Grooveshark and my Zune HD and that I always miss whenever I use one of my iPods. But there's one big problem: song selection.

Because MOG is licensing content directly from copyright owners, there are big gaps from artists who simply don't want to participate in online music. The usual suspects like AC/DC, Led Zeppelin, and the Beatles are mostly missing in action. There are also strange gaps elsewhere. For instance, half the songs on the Pixies' "Surfer Rosa" are unplayable. Compared with Grooveshark, which relies on user-posted content, MOG has too many holes. And of course, Grooveshark remains free (although a $3/month subscription gets you a version without advertisements).

Song selection could improve over time as MOG signs more licensing deals, but I found some other related glitches as well. For instance, '70s folk artist Roy Harper, whom I often use as a test case to see how well an online service does with relatively obscure old content, has almost no playable content, but does offer a nice list of albums with links to Amazon. The only problem: when you follow the Amazon link on unplayable songs, it takes you to the Amazon Music front door--most of his songs aren't available for download there, either.

In its demonstration video, MOG touts its online radio service as a unique feature. When you're playing a particular artist, a slider lets you control how much variety you want, from "play only songs by this artist" all the way up to "play mostly songs from similar artists." It could use some fine-tuning, however. When I started a queue with a Modest Mouse song, it used Modest Mouse as the basis for its selection. Fair enough, but when I added songs by Talking Heads and Public Image Limited, the radio algorithm didn't account for those artists. It simply switched my radio playlist completely when the new songs started playing, showing all Talking Heads songs, all PIL songs, and so on. Pandora and Slacker do a much better job of creating custom stations based on multiple artists. (Although, of course, those services don't let you play individual songs on demand.)

Finally, as I wrote last week, I still think MOG's lack of mobile support is a fatal flaw, but one that could be easily remedied: Apple's approved iPhone clients for subscription services Rhapsody and Spotify, so why not MOG?

All of these flaws can be fixed, although licensing content takes time and convincing. I'm a big fan of competition, though, and MOG takes many of the best features of a lot of other services, combines them in one place, and improves on some of them. For that, the company should be commended.

November 24, 2009 12:50 PM PST

MOG entering the music subscription game

by Matt Rosoff
  • 2 comments

If free ad-supported music services aren't going to make it financially, what about paid subscription services? Rhapsody and RealNetworks continue to soldier along, but RealNetworks is apparently looking for investors to take some portion of the Rhapsody business off its hands, and we haven't heard much about Napster since Best Buy, which acquired it a little over a year ago, slashed subscription prices in May in a bid to build membership.

A new subscription music service is coming next week.

Soon, there will be another competitor in the market: MOG. The company has offered a kind of music blog site with a social-networking spin for a couple years now. On Monday the company announced it will launch MOG All Access, a new subscription service, on December 2. At $5 a month, the price will match Napster's, only without the minimum 3-month commitment that Napster requires.

MOG has been teasing the service with videos for a couple of months now, and the latest demonstration video looks pretty appealing. Fast search will show results as you type, and you'll be able to create and save playlists, which will then appear in other users' search results (for instance, if you create an all-shoegaze playlist, it should show up when I type "Boo Radleys Curve Slowdive"). There's also a social-networking aspect: you'll be able to create profile pages which will display information such as the last song you played, and add other users as "trusted sources" to get their recommendations--very similar to Microsoft's Zune Social.

There's also a radio feature that trumps every other online radio service I've seen. You can enter an artist, such as the Dead Kennedys, and it'll begin playing songs only by that artist; unlike most other online radio services, you'll be able to see the queue and move to any song in it. If you crave more variety, you can have the service add related artists to the mix in a fashion similar to Pandora or Zune Smart DJ.

All this sounds like a valiant effort to move the subscription market forward, but lack of a portable story is a big drawback. Rhapsody To Go is available on the iPod; Microsoft gives you its own alternative for the Zune. Still, I've signed up for the beta and will be testing it out as soon as I can.

October 29, 2009 4:17 PM PDT

Google brings online music to the masses

by Matt Rosoff
  • 10 comments

How far we've come in such a short time. When I began this blog in 2007, finding a particular song online was an exercise in frustration. You could subscribe to an all-you-can-eat service like Rhapsody, but cheapskates and occasional music listeners either had to dig deep, engage with a questionably legal file-trading service, or settle for 30-second previews from iTunes or one of its Web-based competitors.

Search results for "U2 Beautiful Day" earlier today. The box at the upper-right is an embedded version of the Lala player, which let me play the complete song multiple times.

Since then, as readers of this blog know, dozens of sites offering free streaming music have emerged, from the dead-simple like Songerize and its successor Songite (enter a song title to play it now) to the fiendishly complicated Imeem (whose original user interface gave me a headache, although it's since gotten much better).

But, let's face it, most people don't read this blog. Again and again, nontechnical music fans are blown away when I show them a site like Grooveshark, which lets you play any song, any time, and even arrange songs in queues and playlists. "Is that legal?" they often ask. (Answer: it depends.)

Today, that all changes. Google announced the integration of playable songs into its search results yesterday, and is slowly rolling the feature out to U.S. searchers. I finally saw the feature in action this afternoon, when I ran a search on "U2 Beautiful Day." (You can test it here.)

To an experienced online music listener, the feature seems a little bit random because Google is using both iLike (recently acquired by MySpace) and Lala to power playable results, and the two offer different experiences. For my first search, Google randomly chose iLike as the default player, and iLike only let me play the song once, then relegated me to a 30-second sample. When I cleared my cookies and tried again, Google made Lala my default player, and I was able to play the full song as many times as I liked. (The experience will also vary by song and artist, depending on what the copyright holders dictate--Led Zeppelin, for example, is available only in 30-second samples on iLike, and most of its songs are completely missing from Lala.)

Some searches also give you links to Imeem, Rhapsody, and Pandora, each of which offers yet another experience--Rhapsody lets you play up to 25 songs per month for free, Imeem is best for finding unusual versions of popular songs (like live takes), and Pandora requires you to create a virtual radio station based on a particular artist or song, which can be useful for discovering other music you might like, but doesn't give you an instant fix.

Whatever. For the average Internet user, this distinction doesn't matter. What matters: when users go to Google to search for an artist's name, song name, album name, or even a snippet of lyrics, they won't just get random text links or YouTube videos. Instead, the first set of links will be to the audio recording itself--in many cases, the entire song. Everybody knows that there's free music available on the Internet, but most casual listeners don't bother to find it. Now, the most-visited site on the Internet will put it right in front of their faces. As awareness spreads, it'll be another nail in the coffin of traditional music media--why listen to the radio?--and a boon for the five companies who signed this deal with Google. Artists and record labels might also get a shot in the arm, as users discover new music for free and perhaps eventually buy a copy to keep.

As for the rest of the online music start-ups out there? They better be on the phone right now, looking for a benefactor.

October 13, 2009 1:11 PM PDT

Touch-enabled Rhapsody on HP TouchSmart PCs

by Matt Rosoff
  • 1 comment

Microsoft is banking on multitouch support as one selling point for Windows 7, and HP--traditionally a loyal supporter of Microsoft's consumer strategy--is helping the push by releasing an update to its TouchScreen PCs.

The touch-enabled version of Rhapsody for HP's TouchSmart PCs lets you search by writing an artist's name on the screen.

HP has worked with several partners to create touch-enabled versions of various consumer entertainment apps, including Hulu, Netflix, and Pandora Internet Radio, but hard-core music fans will probably be most interested in the touch-enabled version of Rhapsody.

Among the cool features: you'll be able to write the name of an artist directly on the screen, and Rhapsody will take you to that artist's page so you can begin listening to their songs. (Check out the video demo on RealNetworks' blog.)

More generally, Rhapsody remains one of my favorite subscription-based services, with a great selection and strong editorial content. While my other favorite, Microsoft's Zune Pass, offers a slightly better deal with 10 free downloads per month in addition to unlimited streaming, Rhapsody works with Apple's iPhone and iPod Touch. The Zune Pass does not.

Unfortunately, the TouchScreen only comes with a 14-day free trial, which seems a bit paltry: earlier this month Dell announced it would ship some new consumer laptops with a one-year free subscription to Napster, which includes the right to download 60 permanent files over the course of the year.


September 10, 2009 10:53 AM PDT

Rhapsody approved for iPhone

by Matt Rosoff
  • 42 comments

If you were hoping for Apple to announce a subscription-based music service for the iPhone and the iPod Touch on Wednesday like I was, suppress your disappointment: early this morning, Apple approved Rhapsody for iPhone, and it's available in the iTunes Store.

It's the second such service Apple has approved, but the first, Spotify, is not available in the United States. (The Rhapsody application is not showing up in search results quite yet, but it is showing up within iTunes.)

(Credit: Rhapsody)

Rhapsody was a pioneer in subscription-based music, and I'm a big fan of the service; in 2005, it was the first one to turn me on to the thrill of chasing your whims and surfing randomly among genres, which you can't do with per-download services like iTunes.

In my most recent trial late last year (in conjunction with the Sonos multiroom audio system), I wasn't able to find any significant gaps--if anything, there was too much music, including more versions of the novelty song "Kung Fu Fighting" than I ever imagined--and there is some excellent curation and editorial work, particularly for indie rock artists.

The iPhone app is pretty straightforward: you can search for songs, surf genres and chart-toppers, and create queues and playlists. If you're a fan of Pandora, you'll also appreciate the Rhapsody Radio feature, which creates tailor-made stations built around particular artists or genres. As long as you have an active Wi-Fi or 3G connection, the music should keep playing without interruption.

It's a free download, but to use it, you'll need a Rhapsody to Go subscription, which costs $14.99 a month. That's not quite as good a deal as Microsoft's Zune Pass, which costs the same and gives you 10 permanent MP3 downloads a month, but of course that service requires a Zune, which means that it applies only to about 1.1 percent of the MP3 player market (according to a statistic that Apple snarkily included in its presentation Wednesday) and exactly zero mobile phones.

Apple appears to have seen the light, as it is now allowing subscription-based music to come to the iPhone. It makes my phone's 8GB storage size seem a lot less limiting.

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August 14, 2009 11:01 AM PDT

Rhapsody connects to Facebook, Twitter

by Matt Rosoff
  • 4 comments

RealNetworks has been having a bit of a bad run lately, but its Rhapsody streaming service continues to offer unparalleled selection at pricing levels that seem both fair to users and rights-owners--including the ability to stream 25 songs per month at no charge. Plus, I've got to give them credit for introducing me to the idea of on-demand music--you don't know you're missing it until you live with it for a while--even if their business has been hurt by a plethora of free competitors like Grooveshark, Spotify, and Imeem.

So I was glad to see that Rhapsody has added some simple functionality that will let users share full-length songs on their Facebook profiles and Twitter feeds. Every Rhapsody page now has a Facebook and Twitter icon. Click either of them, and Rhapsody will let you post the song you're currently playing to either service. It's not a new concept--iLike has had full-song sharing on Facebook for almost a year--but it's a simple step that should keep current subscribers happy while introducing the service to people on social networks who may never have heard of it.

Yes, I really was listening to that as I posted this.

Follow Matt on Twitter.

June 30, 2009 10:22 PM PDT

Music copyright lawsuit targets Microsoft, Yahoo, Real

by Matt Rosoff
  • 18 comments

I'm not a lawyer, but I'm well-acquainted with legal filings from analyzing Microsoft's legal travails for the last nine years. I've seen a lot of aggressive lawsuits, but a copyright infringement suit filed Monday in the U.S. District Court for Middle Tennessee is one of the boldest--and, I'd argue, short-sighted--filings I've ever seen.

If only online music-streaming services were that lucrative...

(Credit: Wikimedia Commons)

The suit appears to have been initiated by Music Copyright Solutions (MCS), which claims to administer copyrights for more than 45,000 compositions. MCS is named as the lead plaintiff, along with a number of songwriters including Mark Farner of Grand Funk Railroad fame. These folks allege that Microsoft, Yahoo, and RealNetworks improperly licensed the rights to more than 200 compositions that they offered as on-demand streams or limited downloads via the Zune Marketplace, Yahoo Music, and Rhapsody.

Surely these companies paid somebody for the rights to offer these songs. But there's a catch, which TechDirt pointed out earlier Tuesday: these companies may have licensed the rights to the recordings, but that doesn't mean they licensed the rights to the compositions (also known as publishing rights). As section 23 of the legal filing puts it:

In order to transmit, perform, reproduce and deliver any sound recording of any musical work via 'On-Demand Streams' or 'Limited Downloads,' Defendants must first obtain not only the rights for the sound recording itself, but also the rights for the underlying musical composition that is embodied on said musical recording.

Maybe, maybe not--that's up to the court to decide. But that's not the insane part. The insane part is that the plaintiffs are alleging that each time one of the defendants made any recording of a covered song available, that's a copyright violation, and they're seeking damages of $150,000 per violation (or the amount the defendants earned from streaming those songs, whichever is more). So, for example, the lawsuit claims that Yahoo Music offered Conway Twitty's recording of "Fifteen Years Ago" on six different greatest hits albums. The plaintiffs allege that constitutes six copyright violations, which would mean damages of $900,000. Overall, the lawsuit names more than 200 songs, and a far greater number of recordings, meaning that the potential liability for each defendant would be tens of billions of dollars--that's far greater than the total amount of revenues these companies ever earned from any of these services.

These types of cases are usually settled for a relative pittance--something much closer to what the defendant would have paid to license the songs properly in the first place. But imagine for a minute that this lawsuit actually goes to trial and the plaintiffs win damages amounting to 1 percent of what they asked for. No company would ever risk building an online music service again--the legal liability would simply be too high.

When it comes to online music, big legal music services like Zune, Yahoo Music, and Rhapsody are the copyright owners' friends--unlike file-trading networks or free on-demand streaming services, these companies actually collect money from users and disburse it to copyright owners. Perhaps the plaintiffs have a legitimate complaint. But by filing such an aggressive lawsuit to recover billions in supposed damages--I mean honestly, how many Grand Funk Railroad streams have been delivered via the Zune Marketplace?--these folks risk killing their allies and driving music back to the darknet where nobody in the value chain sees a dime.

June 15, 2009 10:36 AM PDT

What's a fair price for unlimited downloads?

by Matt Rosoff
  • 29 comments

Today, U.K. Internet service provider Virgin Media announced plans to begin offering unlimited song downloads for a monthly subscription fee. The songs will be DRM-free MP3 files, which means they will never expire, even if the user switches ISPs. Universal, the largest record label in the world, is so far the only label to sign on, but the other majors will probably follow.

The deal was announced along with a threat to crack down on illegal downloaders (perhaps through some sort of BitTorrent monitoring, although Virgin claims it won't be doing the monitoring itself), but the companies left the most important question unanswered: how much will it cost?

The labels won't want to settle for less than they're getting through iTunes and other download stores, so Virgin will have to guess how many songs will be downloaded per month, then divide that number by the number of subscribers. After some initial heavy usage, I can imagine users downloading about two albums per month. So I could imagine a rate of about $40 per month. That seems fair compared with subscription-based streaming services like Rhapsody, which starts at $12.99 a month.

But what's fair to the industry may not seem fair to users, who have been downloading free music for almost a decade now. People have proven willing to pay for downloads when they get some other tangible benefit--in the case of iTunes, it's the ease of transferring purchased songs to their iPod or iPhone. When the only extra benefit is a clear conscience and less chance of being sued, I think a lot of users will take the risk and stick with free.

Would you pay a monthly fee for unlimited downloads? If so, how much?

Follow Matt on Twitter.

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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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