...so back to my rantings around digital media and the impact that it is having...starting with Music Subscription
So what is Music Subscription? – over the years when asked this by both clients and customers alike I have always used my “Library” analogy:
Let’s take music as an example, but you could use the same model over any media format...
Think of how your local library works, you join a library by proving who you are, a household bill, passport or similar. You then receive your library card which allows you to borrow a set number of books. So you now decide to browse the library to your hearts content looking at various genres, writers etc....
You can sit down and read some opening chapters of the books, decide that you will take that particular book out or not, browse a few more titles, find a couple of books that you have heard friends talk about and quite fancy reading them. You go to the librarian with your 9 books, and find out that you can only take out up to a maximum of 8, so you put one back and have them stamped with a date that they need to be returned by.
You are now at you’re leisure when and where to read them: at home, in bed, on the daily commute, on holiday – then bring them back when you reach the returned date and either return all or some of them, or take them out again because you didn’t finish all of them... and start the process all over again...
How does that relate to Music Subscription then??
Very similar indeed – you chose a “library” that fits your needs, sign up to a service (your library card), prove who you are with a credit card and PC ID, your browse and sample the music content to see what you like or not, decide what you want to take with you, go through the process a few more times until you are happy with your selection. Now you have a selection of 8 albums that you decide you would like to “rent” for that month (what you don’t see is the digital stamp – DRM that allows the user 30 days use of the album) – unlike a library, if you don’t return the books you get a fine or letter informing you that your books are overdue, in the digital world if the user doesn’t return to the music store, the albums lock up and will have no licence to play the albums any more until they “sync” their account. I won’t go into the technical background here with root licence and leaf licence management, but this is the process that needs to happen in order for the user to continue using the albums...
So in relative terms very similar to the library concept – until, that is, you look at the fees:
Library – FREE
Digital Library - £14.99 / $14.99 per MONTH!!!!
WHY?
I know that the labels will no doubt say that you can’t compare physical media with digital – as with the technology available – the process of illegal copies is much higher and that they have to pay their artists, publishers, etc....
So imagine how book publishers and authors felt when the first libraries were introduced: “what you mean that people will not buy my books, they will read them for free and then return them and others will read them...where will I get my money from...” So I guess the music industry is going through that same process - but unlike the book publishers, music companies have been milking the consumers for years with the same content just distributed in different formats (LP, Tape, CD, DVD, Digital) not forgetting some of the bigger record labels who decide to “milk” the consumer even more with limited editions, tour editions, new versions...
So here’s a thought – music subscription should be free – or come up with a model that say, allows the consumer a physical CD each month that is part of the subscription package. There is the usual advertising – but where does that sit, would you like an advert after each song for example – NO – you don’t get hit with adverts on every other page of a library book – within the web player or web site? Hmm not really as more and more users get used to ad blockers the future of advertising models is looking bleak – so how do you get revenue from Subscription...
No one has really looked at the increase in physical sales on the back of digital subscription – I know plenty of people who use subscription as their very own greatest hits and new artists radio (but without the annoying DJ or Ad breaks – Like Chris Moyles’ podcast but in reverse – without hearing the boring and banal Moyles and crew, you get to hear what music is on the breakfast show (and I bet there’s not that much!)
So I don’t have all the answers – but give me a month and I will work out it perfectly....once I renew my DRM (Derek's Reallygood Mind)
Let's be careful out there...
UPDATE.....
The point I was making was more "Do I pay to join a library - NO" Yes we pay for them via our taxes (along with other things….) so that we may access the buildings and the contents - agree..that point, but the cost is negligble to the taxpayer.
And "what you mean that people will not buy my books, they will read them for free and then return them and others will read them...where will I get my money from..." - the answer is, from us! The taxpayer! – Yes once! Not each time the book is lent out that is a one off charge to the publishers.
Music subscription works on that each time you download or listen to a track you must pay a fee – regardless! Even worse is that record companies also wanted a limit on the number of times a track can be listened to! This has been one reason why the music industry has made so much money over the years and now that todays “youth” market undertstands more now on how the industry works and they ask the question “why should I pay”?
Music has been so devalued over the years with newspaper cover mounts, Pop Idol, grey market imports, supermarkets etc... that people now expect music to be free – and it will become free within 12 months music subscription will be free!
Perhaps I’ve been too close to this over the years – but hearing a major record company saying that “Digital Music is licence to print money – we make one single digital copy and rake it in – we don’t know what to do with all the money” while retailers, artists and consumers pay the price – this is one of the many reasons why the industry has been seen as greedy and manipulative.
A free Music Subscription will promote futher buying and break new artists and let users discover more music – at the moment they are working out how this will be free and what models they need to use – music subscription has failed worldwide 6 years after launching various services – and with the news that digital downloads will never penetrate or superceed CD something needs to be done to inject passion back to the industry!
Own nothing – rent everything ?
or
Rent Everything – buy more?
Thanks for the feedback – this will run and run and the record companies are out of time….and time will tell!