Wednesday, February 28, 2007

I don't subscribe to "this is it" definitive views, as this author is. He bases his views with himself as THE candidate end-user. That is hardly respectable research. Nonetheless, his hypothesis is worth reading. And the bit about subscribing to a DJ's playlist is quite in line with Yahoo Music's perspectives. Music for rent however, may deserve further validation. In addition, the Social, Eoconomic, and Technological developmental conditions necessary for pervasive consumption of this model will take years to materialise.
Best Regards
Tai-Hou

It's time to treat music as a service rather than a good
By Don Tapscott
Apple CEO Steve Jobs kicked off a debate last week on whether the digital songs his company sells online should continue to be encased in technology to prevent endless copying. The issue is a red herring. What the music industry should discuss, instead, is how to move toward a smarter business model that offers music for rent rather than purchase.
In a restructured Internet-friendly music industry, consumers would no longer download songs at a fixed price per tune, but would instead pay a moderate amount each month to listen to an unlimited number of tunes streamed to them over the Internet. I'd happily pay a few dollars per month to get access anytime, on any device, anywhere, to any music ever recorded.
Big benefits would flow to musicians and music lovers. Once consumers no longer own songs, the problem of theft disappears. The record labels would stop having to view all their customers as potential crooks, and no longer haul children and grandmothers into court. Payments to musicians would be more reliable and equitably distributed. And musicians would be encouraged to use the Internet more creatively to develop stronger ties with their fans.
With high-speed wireless Internet service becoming available throughout the country, around-the-clock high-quality streaming audio is now practical. The newer cellular phones can already receive streaming television shows and videos. It would be easy to add on streaming audio as a feature. Call it Everywhere Internet Audio.
Most iPod owners I know, me included, have grown tired of being part-time disk jockeys. Constantly compiling playlists from the thousands of MP3s I have is a chore. Often I just choose the artist and listen to random tunes. Or I just put my iPod on shuffle.
What I want are the services of a professional disc jockey at my beck and call. My DJ would choose music for me that suits my mood and what I'm doing. If I wanted to listen to tunes I'm already familiar with, my DJ would do that. Or I could ask for new artists that would probably appeal to me based on music that I already like. I could ask for music appropriate to jogging or a Sunday brunch.
Everywhere Internet Audio service providers could compete on their ability to fine-tune the software and offer the right tunes at the right time. They would have a much better knowledge of the constantly evolving music industry and would be much better equipped to discover great new artists than I could on my own. And because I'm not buying the new songs, I would be more predisposed to sample new artists. Smart software could do most of this. Amazon does a great job of recommending new books based on what I've enjoyed and what others have purchased. Music would be no different.
Starbucks introduced a great music service a few years ago when it offered compilation CDs with the tunes chosen by other well-known musicians. I bought a disc with tunes that Mick Jagger says he listens to before he goes on stage. I loved it. There are endless permutations on this theme that Everywhere Internet Audio service providers could offer. I could ask for music B.B. King listened to in his youth or Alanis Morrisette's favorite chamber music.
Naturally, the content and technology around my ideal system would be completely open. Service providers would have complete access to all the millions of songs that have been recorded. Sony, for example, wouldn't be able to restrict its music content only to Sony-authorized service providers.
Similarly, the technology would be open. Any device with a broadband Internet connection and speakers could play my channel. I wouldn't have to buy a Sony device to listen to Sony music.
All revenue would be pooled and then divided up among labels, composers and artists based on which songs were listened to. The total revenue to the industry would probably grow. And because there would be no costs of producing and distributing CDs, the entire industry could return to profit.
Rather than dreading the Internet, musicians would be encouraged to exploit the technology to develop stronger relationships with their fans. They could post music online without worrying that song sales -- and therefore their paychecks -- would evaporate.
Treating music as a service rather than a good is a radical notion. But its time has come.
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More technology news and opinion at www.siliconvalley.com
Don Tapscott is the author (with Anthony D. Williams) of ``Wikinomics: How Mass Collaboration Changes Everything.'' He wrote this article for the Mercury News.

1 comment:

Unknown said...

He's a pretty good and charismatic speaker - he gave a keynote at iX2004(or 5) in SG. Guess we'll have to give him some credit as a renowned futurist and the guy who coined the term "paradigm shift". :P