Crave

On last week's MP3 Insider podcast, Senior MP3 Editor Donald Bell and I found ourselves wandering off on a tangent about cable television. Namely, I refuse to pay the astronomical fee Comcast insists on charging for even the most basic of packages. (Listen to the show.) Frankly, they're already siphoning off plenty of my hard-earned cash for the Internet service alone.

Personally, I'd rather fork over $15 each month to Rhapsody for all the music I can listen to than bleed out $60 to Comcast, especially considering the fact that almost every TV show I want to watch can be streamed free--and legally--from sites such as Hulu, Netflix, and Veoh...heck, even the network's own Web sites offer up recent programming for free. However, while I may be perfectly comfortable "renting" my music, Donald makes a fair point that many people still can't come to terms with the idea that they don't get to own the music outright, especially when they're getting yet another bill in the mail each month.

And so here we are...with me making yet another attempt to convince all you hold-outs that subscription music is great. I'm all about Rhapsody, and here's why:

1. "Free" for all: Rhapsody is one of a handful of music services that let's you listen to any song you want, on demand, for free. Yes, there is a catch: you only get 25 free streams per month...but that's better than nothing! Because of this aspect, you can share songs and playlists--via e-mail, IM, or blog/Web site--with anyone, even if he or she is not a subscriber. (Another service worth checking out with a similar feature is La La, which gives you 50 free song credits for streaming.)
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Long live the Gremlin! The MusicGremlin MG-1000 Wi-Fi MP3 player in all its chunky glory.

(Credit: CNET Networks)

Today, SanDisk announced the acquisition of MusicGremlin. As one of the pioneers of Wi-Fi-enabled MP3 players, MusicGremlin's expertise may help SanDisk resurrect its Sansa Connect MP3 player model, which was partially obsoleted by the demise of Yahoo's subscription music service earlier this year.

SanDisk's MP3 players are second only to Apple's iPod in terms of sales, and are characterized by their low price and wide file format compatibility. The addition of a Wi-Fi-capable portable music player to SanDisk's current product line would help the company stay competitive against new offerings from Haier, Slacker, and Microsoft.

(via Engadget)

Earlier this week, I attended the SanFran Music Tech Summit, best described as a meeting of the minds of those who are deeply involved or invested in the music technology space. To quote the event Web site: "We will meet to discuss the evolving music/business/technology ecosystem in a proactive, conducive to deal-making environment." I know...sounds a touch boring, but it was actually quite the opposite. In fact, I've come to the realization that conferences with an emphasis on panels are infinitely more informative, entertaining, and relaxing than those centering around massive product launches (ahem, CES). The panels covered topics of varying interest in the music space, and although none really focused on hardware devices, each offered some interesting insight into how technology continues to change to music industry as well as what it is doing to help consumers hear what they want and discover new content.

Now I could go on and describe the three panels that I attended in excruciating detail, but in the interest of not putting you to sleep, I think we'll discuss something that never fails to incite some form of interest: good ol' Digital Rights Management. Ah, DRM...what a tangled web you weave. The technology was a hot topic throughout the course of the conference. Unsurprisingly, the subject turned into a rousing debate during the Artists, Copyrights & Technologies panel, with panelists talking over one another and audience members chiming in out of turn. It was quite the frenzy. And it was great. Clearly, DRM is a touchy topic for many people who are involved in digital content--and that's a lot of people. We have the producers, negotiators, marketers, distributors, purchasers, and even educators, which is the term I apply loosely to myself and other tech editors who have the job of explaining DRM to frustrated users. Indeed, it takes very little provocation for me to get riled up about it myself--if you have any doubts, have a listen to the MP3 Insider podcast.

But back to the panelists. There was quite an array of backgrounds represented, which is always good at these "round tables." The moderator was an independent musician, as was the representative from the Electronic Frontier Foundation (EFF) and the founder of CD Baby (who, incidentally, founded the site to promote his own music--gotta love that). Then, there was the CEO of Songbird, the CEO and Chair of TAG Strategic, and a lawyer specializing in artists' rights. The moderator and the EFF rep (unsurprisingly) were the most outspoken against DRM, essentially noting that it restricted the artist and consumer alike and was the reason that many people acquired music through illegal means (P2P services)--they want to be able to get the music they like and play it on any device they want, i.e. fair use. That seemed to be the general feeling of the audience as well. For the most part, positive comments made by other panelists about DRM were met with at least a hint of disdain. Mostly, I think, because people have trouble separating DRM from its reputation, but there are some logical points to be gleaned from both sides the conversation.

First, many people are willing to contribute directly to the artist--or even invest in them--if they are given the opportunity and easy access to digital music that they can use how and where they please. In fact, there are those of us who believe that given the choice between this and getting free music from a questionable source, the overwhelming majority will choose the former. This also plays nicely into the idea that people value something more if they pay for it (even if it's just a penny), and this is an important thing for the musicians and many of the listeners. Not to say people still shouldn't be able to buy from stores such as iTunes, but once you take away the DRM it frees people up to purchase from many different sources for a variety of players, rather than getting stuck in a monopolostic "one device, one service" situation.

The other point is that not all DRM is bad. For example, music subscription services could not exist without it. The copy protection is necessary in order for the services to keep track of the time cycles of the subscriptions and to cut off access when a user ceases to pay. It's also necessary for Internet radio services to use some encryption--also DRM--in order to stay up and running, and I think we can all agree that having Internet radio readily available is a good thing. Innovative devices such as the Ibiza Rhapsody, the Slacker Portable Player, and the Sansa Connect would also not survive without DRM. The bottom line is that there should be different types of DRM to serve different purposes, but in the end what it should do is open up more opportunities for users to listen to music, rather than restrict and confuse.

OK, after that little DRM love fest I just had, I'm feeling a little dirty and would just like to state for the record that when it comes to piecemeal purchased downloads from online stores, I think they should all be DRM-free. And based on the existence of Amazon Digital Music and recent announcements from Napster and iTunes (not to mention a conversation with Rhapsody), that's the way things are headed...and soon, at that. In the end, the consumer will win (I hope) and that's all that matters to me. In closing, I'd like to push my personal agenda/belief that subscription music is the wave of the future, and quote Ted Cohen, who was the panelist from TAG Strategic: "You don't need to own it anymore...and it's not about 'renting' music; it's about gaining access."

It's been a tumultuous few days for Yahoo--you know, with that takeover bid from Microsoft--but the company continues to shake things up internally, too.

On Monday, the company announced that it will discontinue its Yahoo Music Unlimited subscription service and will transfer its customers to RealNetworks' Rhapsody service.

In mid-2008, Yahoo Music Unlimited subscribers will be guided through an in-browser process to convert their music libraries to Rhapsody's service. For a limited time (length unknown), they'll be able to keep paying Yahoo's subscription fees, which cap out at $8.99 per month, before being required to start paying Rhapsody's $12.99 monthly fee.

Additionally, Yahoo announced in conjunction that it has acquired FoxyTunes, a browser plug-in that is compatible with multiple desktop and Web-based music players.

RealNetworks, which acquired Rhapsody when it purchased parent Listen.com for $36 million in 2003, has been partnering with both hardware manufacturers like TiVo and media companies like Viacom's MTV Networks. It's the company's best strategy for staying afloat in a digital music landscape that's not only dominated by Apple's iTunes but also seems to be gravitating toward "free," not subscription-based models.

But the announcement with Yahoo is shrouded in uncertainty, for obvious reasons. Just about anything could happen to Yahoo if Microsoft's proposed $44.6 billion acquisition goes through.

RealNetworks, ironically, has a hostile history with Microsoft, too, dating back to an antitrust scuffle several years ago that led to a partnership in which RealNetworks ultimately claimed it was shortchanged.

Rhapsody, the subscription music service owned by RealNetworks, has teamed up with music blog network and social networking site Mog.com to provide, well, music.

Through this partnership, songs mentioned on Mog's blogs are accompanied by a yellow "play" button that allows users to access the full-length streaming file through Rhapsody, which offers a total of about 4.5 million independent and major-label songs in its catalog. "We couldn't be more excited to have Rhapsody enabling music listening on MOG," Mog founder and CEO David Hyman said in a joint press release. "With today's release, MOG has put more key pieces in place towards its goal of building the ultimate online music community."

Rhapsody's full-length song playback is also now integrated into Mog's "Mog-o-Matic" downloadable music discovery software, creating playlists of recommended music based on what you play on your computer or portable music player. It's social, too--you can listen to not only your playlist, but also those created by members of your friends' list on Mog. In addition, Mog users can create custom playlists of Rhapsody songs, much like Imeem's streaming lineups.

New versions of Mog-o-Matic have been released in conjunction for both the Mac and Windows operating systems; the company touts them as faster, more efficient, and more stable. At the same time, Mog has souped up its music search feature, redesigned its artist and album pages, and tweaked its page layout.

But don't hold your breath--this Rhapsody-Mog deal isn't free. Mog members can access the Rhapsody streaming songs for a 14-day free trial, after which point they have to sign up for Rhapsody's subscription service ($12.99 per month) or a 25-songs-per-month deal.

Rhapsody's subscription-based music service has, thus far, proven unable to compete with Apple's ubiquitous iTunes. As a result, the RealNetworks-owned service has attempted to compete by forging partnerships across the digital-media landscape: an impending music store deal with MTV Networks and an appearance on TiVo set-top boxes, for example.

Unfortunately for Rhapsody, it still hasn't been able to create much of a dent in the iTunes arsenal. Nevertheless, the deals keep rolling in.

Last week, New Yorker classical music critic Alex Ross wrote about how the Internet is reviving classical music. Among other things, he points to an explosion of blogs and message boards that allow artists to communicate directly with fans and help younger listeners educate themselves before diving into this intimidating realm.

One of the most interesting parts of the piece, though, was his conversation with Naxos Records founder Klaus Heymann. After years of plugging along as an "expensive hobby," Naxos has begun to earn significant revenues selling CDs over the Web--the company earned more than $80 million in 2006. It also operates a download service called Classicsonline. (There's something heretical about being able to download and pay for each part of a classical work separately, but for me, Beethoven's 9th peaks in the 2nd movement anyway. Now I can buy only that movement for $2.39.)

But Heymann believes the future resides in subscriptions. The company put most of its recordings online way back in 1996, and today, the Naxos Music Library allows listeners to stream any of Naxos's more than 200,000 recordings for a subscription fee of $19.95 a month. Eleven thousand users have signed up--not bad for a genre of music that is usually written off as a commercial dead end.

Classical music listeners might be more amenable to subscriptions than other types of music fans. Most listeners aren't familiar with classical music, and they're not going to find out much from TV or the radio, so a subscription helps with discovery. Pop music is about fashion and lifestyle as much as the music itself, so there may be more of a draw to own physical discs. (Admit it--you've judged people by their CD collections.) Even so, the fact that Naxos gets 25% of its revenue from digital sales means lower distribution costs and higher profits--a point the mainstream music industry might want to observe.

Click me to check out the new Napster interface.

Other than its first reported quarter of positive cash flow, Napster has enjoyed a relatively unremarkable year--at least on the surface. It is now apparent, however, that plenty of tinkering has been going on in the background.

The company on Tuesday announced a fairly significant redesign to its music service and software. The new Napster, version 4, is lighter and a bit simpler--and it definitely appears to take some cues from RealNetworks' Rhapsody.

Of particular note are the launch of a Web-based version of the service, which will enable Mac and Linux users to join in the fun, and the addition of the Automix feature, a new music discovery tool.

I could go on to list all the details in long and boring fashion, but a picture (actually, 22 pictures) is worth a thousand words--wouldn't you agree? Check out our slide show for an up-close and personal look at Napster 4.0.