Subscription Model, Forget about it
Posted by: Grayson Brulte
With the recent talk coming out of Digital NARM that that subscription models are the future, I decided to chime in and offer my opinion. Current subscription models are dead! It’s a huge step backwards, in an industry that can’t afford to make too many mistakes now. Consumers want ownership, not rental!
Public Enemy was one of the first bands to understand this technology and embrace it. Back in 99 they released whole albums in DRM Free MP3 format on a pay for album download model. It worked, the consumers embraced it, but the industry turned a blind eye and didn’t want to work with them since they were pushing the envelope forward.
The current subscription models do not offer what the consumer wants.
The consumers want the following:
1) Ownership, and the ability to transfer the music to any device they own or might own in the future.
2) Ease of use without having to download another software application. iTunes works because it’s simple and everyone has it.
3) The ability to make mix CD’s for their cars and friends.
Mix CD’s serve a two-fold purpose.
1) It allows your music to get discovered by a new consumer and possible fan.
2) Buzz around your band will grow as the friend is more likely to go online and search for your band. By serving advertising on your site, you can make up for the cost of allowing a fan to share your music.
A mix of ownership and subscription will be the model of the future. This will take time as the technology is not there and the content owners have not embraced the idea. Consumers want to have the music they want, when they want it. Not when you want them to have it.
Content owners need to focus on the following for the future:
1) Partner with technology firms and create an On-Demand Streaming hardware device that will plug into your home stereo. Have the device connected to the Internet and allow purchases of DRM free music that can be transferred to any device.
2) Partner with the major television firms to build the new interactive TV model that will allow for one click music purchasing without having getting off of your couch.
The future is now, embrace what the consumers want or continue to fall by the wayside and become acquisition targets.
Related Blogs & ArticlesPosted in Music Industry, iTunes, Digital Music, Technology, DRM, Public Enemy, Subscription Service
May 3rd, 2007 at 12:20 pm
I have seen people use one particular phrase over the past few years that really irks me, “Content is king.” I have said it before and I will say it again, “Consumer is King.” The record industry had the key to the lock on the content, they over-indulged with marketing, and saturated the market with the same song every 5 minutes on the radio. A revolution is here and the tipping point for this new revolution was back on June 1, 1999 with the release of Napster. The aforementioned models seem to be some of the brightest ideas I have heard about in quite some time.