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March 21, 2005
Ongoing discussion on Online Music Services
Renting versus owning music - take 3
The debate on Napster To Go versus ITunes goes on and on, with many people wondering if a RENTING music model (a la Netflix for movies) will prevail, or a Buy Per Track model (ITunes). The debates are useful but not quite getting down to the bottom of things yet. A quick 2 points on this:
1) It's not either or (never is). Rather, I think users will rent for a cheap monthly fee that has them covered (see music like water), PLUS they will download individual tracks, and still buy CDs and DVDs. However, the difference is that with a SUBSCRIPTION model I can get a lot more people into buying music, at all - rather than 40% of people leaving the stores without buying, how about covering 80% of all consumers with a cheap flat-rate music subscription. This is where Napster wants to go, I'd say.
2) Guess what: you don't really OWN your tracks on ITunes, either -- there IS DRM on these tracks, and your rights to 'own' CAN be revoked --- it just feels like you own it since most people won't get near the limits that Apple's DRM (Fairplay) imposes on them. Fact is, though - we are just renting here, as well. Why else would people try to crack it?
Posted by at March 21, 2005 11:17 AM