Online Music – Subscription Model
Mar 23
Strategy Apple, music download, Strategy View Comments
For many years, distributors and online vendors try to propose subscription models for online music. Most of them have failed for the following reasons:
1) Listening to music is free of charge
Turn on your radio, get free music. Turn on online, get online radio. If I just want to listen to music, I care less about the song quality then I do not want to pay. I tune in, listen, end of the story.
2) Music is not brand related
In very few cases you will buy a CD because it belongs to a specific label. Blunote is one of those examples. By proposing high quality artists on Jazz, they successfully managed to drive loyalty within their customers. However, you will not look at the label of the artist before you buy it. You will buy Seal or Alicia Keys, not because it is a Warner or Universal Music CD. When you purchase a CD in a retailer shop, imagine that you are being told, “Sorry, we only sell Virgin music here.” Unbelievable! This is unfortunately what is happening online where stores only propose some parts of the catalog.
3) Music is universal
Same point about the regions it is being sold. Once again, imagine you want to buy the latest CD from Seal in Singapore and you are told, “Oh, so sorry (sounds familiar…), we only sell it in Tokyo.” Well, this is again what is happening online when for example iTMS only available in some countries. Should you want to buy music legally online, this is a real pain in the neck.
4) You want to own music and listen to them whenever you want to
Should you download or buy a CD? People still listen to music multiple times, based on your mood. It should not be tied up to any contract.
This is the reason why I personally do not believe in the current subscription model where:
1) You pay a monthly fee to have a limited access to an artist catalog, which sometimes may be available in some regions only.
2) You pay a monthly fee to listen to the music but cannot transfer it to other devices.
3) Your content is linked to a monthly fee.. You stop paying – you have no more songs.
So, when we hear that Apple is about to launch a subscription model-based music I have mixed feelings. I am worried because of the above point. I am curious to see how they will crack it.
Let’s see and hope for the best.

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