Comments on: Analyst: Music industry should help people share music

A report by Forrester Research says the music industry should focus more on "360 deals" that help fans share music and forget about subscription models.

[real_bgiel]

Subscriptions work

I really don't want to pay $0.89 or $0.99 for every song that pops into my head. My Rhapsody subscription lets me listen to whatever I want, whenever I want, at work or at home for a reasonable monthly fee. If I want to burn a CD for the car I can buy it. But my computer has completely replaced my stereo at home.

So, sorry to disagree, but NOT EVERYBODY wants to buy their songs.

[QuetzalcoatlUSA]

Congratulations!

You are part of the 7% that like it. I hardly think the music industry is going to continue to wrap itself around a system which fewer than 1 in 10 music buyers like.

[Everlovin G]

Told You So...

On November 7, 2007, I wrote the following:

"Per my timely and tres forward-thinking piece in last week's
"K.K.B.B." (he said, humbly...), in re major labels and their
(current) major downfall -- not having already come up with a
major new business model that leverages the WWW -- please
feel encouraged to read the following corroborating affirmation
of sorts in The Lede blog:

"Based on the internet activity of 2 million people in its
database, ComScore said that about 1.2 million people visited
Radiohead?s Web site to download the album during the entire
month of October -- not just the first 10 days.

"And most decided against paying, with only 2 out of 5 people
paying an average of $6 for the album, "In Rainbows." Here are
the statistics, from a news release:

-- Paid Downloads: 38% (worldwide) | 40% (U.S.) | 36% (Non-
U.S.)
-- Free Downloads: 62% (worldwide) | 60% (U.S.) | 64%
(Non-U.S.)

" 'That?s a large group that can?t be ignored and it's [sic] time to
come up with new business models to serve the freeloader
market,' Fred Wilson, managing director of Union Square
Ventures in New York, told Canada?s "Financial Post." "

Read The Lede blog in full here:
http://thelede.blogs.nytimes.com/2007/11/05/checking-in-
on-radioheads-experiment/index.html?
ex=1351918800&en=054a21dc5e9aeed1&ei=5088&partner=rs
snyt&emc=rss

And, if that's not enough to convince you, check out this article
found today at C/NET News.com: http://www.news.com/8301-
10784_3-9812275-7.html?part=rss&subj=news&tag=2547-
1_3-0-5

BTW, Warner's music stock has been downgraded from 'neutral'
to 'sell' (11/7/2007). Let the bloodletting begin...

I'll say it one more time, with emphasis: The time for labels to
develop a new business model is right now! -- not tomorrow,
not next year. It's time to stop wasting any income on RIAA law
suits. The digital music cat is out of the bag and it ain't going
back in no matter how many people they sue or how much
money they spend trying to force today's music consumer to
adhere to their now-out-of-touch business model(s). Period!

Look to Ticketmaster folks (read: record labels) for a clue.
Today, I downloaded four FREE tickets to see Blue October,
Yellowcard, Shiny Toy Guns and Lovedrug at the Pompano Beach
Amphitheater (one of my favorite South Florida venues). Upon
doing so, I was invited to download TEN FREE SONGS from
iTunes....

Difficult as it is to admit, Ticketmaster has the right idea -- and
they have it now!

Once the Evil Dark Lord of concert ticket sales, Ticketmaster is
now poised to become the future of music promotion and
distribution without, perhaps, even knowing it! In making 'deals'
with iTunes, or other digital music distribution sites, and artists
directly, they could possibly now suggest a tour schedule
(already having serious sway with venues), promote the shows
(I've got to imagine their database of customers is HUGE), sell
the tickets and distribute the music -- all online, as I've
previously suggested!

Perhaps some bands will be savvy enough to suggest the
following scenario (perhaps): We'll allow you, Ticketmaster, to
distribute one free song (of our choosing) for every ticket you
sell to a show, while we, the band, will retain the right to sell
our music the old-fashioned way: on a CD, after a show, along
with a t-shirt, or some such other swag.

It's both an exciting time and a fearful time, to be sure,
depending on which end of the music stick you're shaking.

[GarethReakes]

Download model wont work for all

Hey Greg,

Interesting summary, it's good to hear James McQuivey's comments. He's right to tell the industry to cheer up, there's so much exciting activity at the moment!

As CTO of ad-supported service We7 I obviously don't agree with his thoughts on models like ours. First, I think that the ad-funded model will exist as one of many and gives choice to consumers. Second, I agree that people want to donwload and own music but I don't see why that can't be in an ad funded model. At We7 people download DRM free tracks with an audio ad attached to the front. I agree that sharing is critical and that's where ad-funded models come into their own. You can try a whole load of music at no cost and then buy the ones you like with the budget you have available.

For everyone from fans to concert promoters the options are changing daily which means multiple models have the chance to grow and prove themselves. 1 size will not fit all.

[Marc Cohen]

Ad-Supported Music

"There will eventually come a day when Chips Ahoy will contend with the Keebler Elves over who can be the official cookie of the Taylor Swift world tour."

That's not ad-supported music?

Check out the Ad-Supported Music Central blog:
http://ad-supported-music.blogspot.com/

[Cait3644]

The Music Industry Just Ain't Workin'

I am a Boston University student, never had the quoted
professor, but I am mostly in agreement with what he said. As a
young person in the music industry's most problematic target
audience (young people, Generation Y...), I know for a fact that I
and others of my age group do not use subscription services,
hate being bombarded by ads in any form, and refuse to accept
programs like Last.fm because we want music we can take from
the computer and hold on to. The music industry has a lot of
work to do, and I honestly think that unless it embraces the
power of YouTube, Facebook, and other new media (and stops
treating them as legal problems) it will fail miserably. I posted
something similar on my blog at http://lossfurwords.blogspot.com if interested...