Still hoping to sell music by the month

As CD sales continue to plummet, and the music industry searches for a profitable future, entrepreneurs with various approaches say they believe they can finally make online music subscriptions work.
(From The New York Times)

The story "Still hoping to sell music by the month" published October 13, 2009 at 10:55 PM is no longer available on CNET News.

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[davidmcelroy_dotmac]

For people who are heavy consumers of new music -- AND who don't want to download it illegally -- subscription services might make sense. For the vast majority, though, we don't WANT to pay every month. Subscription service backers (and music labels) can't seem to get it through their heads that most of us want to OWN the files we have. We don't want something that can "go away" if we cancel a service. Maybe it's just psychological, but I don't think most people are ever going to want that sort of arrangement. I want to have music in a format that someone else doesn't control and I want to be able to play it on any device I want, whenever I want, and I don't want anyone else to have the right to say, "You can't listen to that anymore." I predict that all these subscription services are doomed to either die or continue to exist for a narrow niche audience, but never go mainstream.

[SJ2571]

+1

[Super2online]

That's why I choose the Zune service. You get 10 DRM free songs every month that you now own and play on any device, desk bound or mobile. If I discontinue my service, all those songs are still mine. The service is $14.95/month. However if you subtract the free downloads, I only pay $4.95. And I can listen to a library that is almost as large as iTunes. Besides, both the Zune software and the new Zune HD are unmatched by any company. Include the new Zune features coming in the Xbox 360 this fall and there is nothing on the planet that comes close. As far as I'm concerned, it doesn't get any better than that.

[Random_Walk]

"Subscription service backers (and music labels) can't seem to get it through their heads that most of us want to OWN the files we have."

Indeed - I only want to pay for it once, if I can help it.

The Zune subscription service is a semi-compromise in this direction, but it still reminds me of a slightly modified 'CD of the month' club... where you're stuck with paying up for as long as it takes before you decide to cancel the service.

The problem with a sub service nowadays ('free' songs or not) is that most of the stuff blaring out of the radio these days, well, sucks. Maybe it's my age talking (40), but there's not really enough new label-generated music out there that can justify the price - any price. The stuff I like, I pretty much already have, and took the time to rip to mp3 a long time ago (and still continue to do).

You'd think that CD sales would continue to chug along because of this, but I suspect that folks aren't buying as many because they're not wrecking their CDs as often anymore. It's easier to buy a CD, rip it, and keep the CD as a master at home, than it is to drag the CD around and eventually replace it as it gets scratched from usage in the car. I used to consume the things a LOT... mostly due to the not-so-gentle treatment the things received in my Jeep, or at work in my laptop. Now it's easier to take a ripped CD and burn it (abusing the ultra-cheap burned CD), or to simply stuff the songs on my iPod or Crackberry. I even have a small portable HDD I take on trips which holds my entire music collection - no more having CDs crammed into the luggage.

Also, as I get older, I get smarter - I don't buy new CDs anymore, and haven't for years. It's way cheaper to buy 'em used, and to ditch the ones I don't like the same way (by selling them to the same store - you don't make hardly anything off of them, but at least it's something, and better than having it take up space at home).

The funny thing is, I don't buy music off of iTunes' Music Store. I'm old enough to still want that physical bit of plastic to hold on to (think of it this way - it's like getting a personal offline backup free with your purchase).

I suspect I'm not alone, because CD sales have apparently dropped through the basement. OTOH, not everyone does it the way I do, but as complex as I am with music, others likely do similar things, and the complexity of taste and methods is likely what is puzzling the music industry. That, and the fact that the majority of what they churn out these days, well... sucks.

[magicmaster]

Consumers may listen to unlimited numbers of songs on those subscription-based services, but the selection is definately limited, and consumers still prefer owning songs rather than "Your song is not no longer available for listening".

[Lerianis3]

I have not found it all that 'limited' from the major streaming services. Every single major song is on Rhapsody and iTunes has every major song as well.

[Sausagebiscuit]

"In 2001, they created and financed Kazaa, one of the original peer-to-peer file-sharing services that hurt the music industry."

How is forcing someone to realize their business model has gone the way of the do-do hurting them?

That being said, I do agree with davidmcelroy_dotmac and SJ2571 and magicmaster above.

[wlxfeedpartner2]

This is a very nice post. I really like it. Its very helpful.

[Lerianis3]

Sorry, but all the online music subscriptions that I have seen, even from Rhapsody and others, are way too expensive for what you get, unless you have a 'special deal' thing like I had recently for it. 100 dollars a year? Hell no. Way too expensive for the average person like myself to indulge in when you cannot keep the songs that you like on your computer and have to 'stream' them at every time you wish to lose them, which makes it impossible to listen to them when you don't have an internet connection.

[RavenProject]

You can save your Rhapsody selections to an MP3 player for offline use, you just have to synch up every so often to validate your subscription. (This may not work with every MP3 player, but it works with my Sansa units...)

-J

[hutwarmer]

this seems to be the newest business model that all companies are trying to ram down our throat. it is essentially this; give us your credit/debit card number and we will charge you monthly for what essentially is *nothing*. When you stop paying us, you are left with *nothing*.

great. i keep reading how EVERYONE wants to charge us a *small monthly fee* for access to their goods. if i am really going to be forced to go through my credit crad bill every month to verify a dollar for this and 2 dollars for that, i would rather just forgo those services altogether.

[Winniroo]

This competes with satellite radio, not with iTunes. I am going to consider it as an alternative to a cumbersome Sirius subscrption which will only play on one piece of hardware. This would play wherever I could plug my phone in with a mini, and would presumably have programmable content settings.

[live311]

I think subscription music does have the potential to give honest people a way to legitimately discover and acquire new music. The lower the price, the higher the quality, and the fewer the restrictions, the more chance it has to be successful. I think the Zune platform has come closest to this. Too bad it has a small user base and no marketing to speak of.

Unfortunately, people will continue to pirate music simply because they can. It's hard for a paid service to compete with a free one.

[bgitt]

The name/URL of most of these companies Rdio, Kaaza, etc., are absolutely goofy and bear no relationship to, nor conjure up any thought or image of MUSIC. They are not part of everyday conversation and are not in anyone's lexicon, save the very few who have a vested interest or passing fancy for such gobblygook. As such, the name/URL of these companies are not easily imprinted into the subconscious for familiar "retrieval" at a moment of transactional impulse or impetuousness. Accordingly, a difficult task is futher complicated for all involved and those they seek to attract as customers.

[madeinttown]

Do you like the sound of your own voice?

[WileySkier]

Subscription services are definitely niche, but you couldn't pay me to give up my Rhapsody subscription. I recently got a Sonos box which is hooked up to my home stereo (speakers throughout the house) and I can listen to Rhapsody through that and control it through an iPod touch. The access to all the music, both subscription and your existing library, is very addicting. However, I know very few people who have that setup or is willing to pay for it.

The Mog service sounds like a good deal for $5 / month and I've heard good things about Spotify.

For those of you who have talked about a disdain of monthly fees, that's just a part of everyday life. If you stopped paying your television bill, you would not be able to watch your favorite shows anymore. I know many of you don't think that way, but that's the way I see it.

[Renegade Knight]

Rental Music. I'd say this is a great idea except I've never seen a Blockbuster busienss based on CD's. Even libraries don't do much trade in CD's and they don't charge.

[und3vout]

Renting music, renting software, it's cloud computing. Not sure I'm ready for it myself. Being a collector by nature, I like touching and keeping what I buy.

[Hey_Radar]

I'm a fan of the Zune Subscription service (not a fan of the Zune software or the player, but it does its job). I wish that Apple had the same service.

I pay for the service for my kids. They are able to show their Zune to their friends and have 1000's of "legal" songs on it, just like their illegal LimeWire friends have on their iPods.

Subscription service is great for kids, where the 'cool' music to listen to changes weekly. As just as fast as it became popular it no longer is, and they delete it from their player. So there is no waste.

Plus with the Zune subscription service, you can connect 3 Zune players. So $5/month per player isn't a bad deal. And I teaching them a valid lesson that there is no reason to steal is "priceless".

P.S. Most of their friends don't even realize that downloading songs from LimeWire is illegal. They look surprised when they are informed that it is.

[Gabey8]

How does this article not make mention of the Zune subscription service at all?

Fortunately, one of the early comments has taken care of describing the service's features, but the absence of even a cursory mention of the Zune Pass is a rather glaring omission on the part of the original article's author.

[huddie klein]

I think the success of iTunes is enough proof which business-model works and which doesn't. And that model suits itself well for the exploitation of niches that are hard to fill otherwise. And that's good news for those who think the majority of new popular and widely available releases suck!