Unlimited music coming soon to your pocket?

03.18.08 | art, business, tech | Share | Share

The Financial Times reports:

Apple is in discussions with the big music companies about a radical new business model that would give customers free access to its entire iTunes music library in exchange for paying a premium for its iPod and iPhone devices

While the music industry appears to be asking for a $100 premium, Apple is bargaining for a $20 premium (see the Financial Times article).

How much would you pay up front to have unlimited access to music on the portable device you carry around every day?

Most people have their personal devices for about 2 years.  A subscription service of $8 a month costs $192 over the life of the device, and is a lot more complex to use.  Thus by one measure the music industry’s price seems very attractive to customers.

Yet the average amount of songs sold through iTunes for every iPod is about $20. Any amount over $20 is bringing the music industry revenues it doesn’t have now. And as bands make more and more of their money from live events, it makes sense from an advertising perspective for their music to be distributed broadly, listened to frequently, and consumed with abandon. So while the music industry may hold out for more, at anything over $20 they are gaining revenues, usage and exposure.

Contrast one up front fee to the current system. Buying each song individually on Amazon.com or in iTunes requires many more purchasing decisions, which reduces the total amount of music listened to legally.  Downloading free music from the Internet is fraught with legal risks. Since many listeners to music are children or young adults, with a choice of asking their parents for more iTunes money for song purchases or downloading songs illegally, a device with an unlimited access to music also solves a significant problem for parents.

The future of media. The future of the music industry could be bolstered by such a deal. A steady form of legitimate revenue that its users will actually use, supplemented by ancillary revenues from greater live venue attendance, could make the industry stronger. The future of handheld media devices, particularly devices connected to fast wireless Internet networks, is looking fantastic. They are rapidly becoming the most powerful form of distribution for any form of digital media, from music, to books (see the Amazon.com Kindle), to software (see the iPhone software keynote). What’s next?

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A library in your pocket

01.07.07 | business, tech | Share | Share

The largest collection of knowledge in the world was once contained in the scrolls of the Royal Library of Alexandria in Egypt. As the story goes, Ptolemy III by royal decree required all visitors to the city of Alexandria to surrender all books and scrolls in their possession for copying by official scribes. Alexandria became a haven for knowledge and knowledge seekers (until the library was burned down).

The Internet is now likely the largest collection of knowledge in the world, distributed but still accessible. Yet the Internet has to date been an imperfect substitute for a book, just as a book is an imperfect substitute for the Internet.

For a reader, the advantages of a book over the Internet are (a) a book has a particular tactile feel and easy to read appearance, (b) a book is always on, (c) a book has a certain kind of durability and yet is low cost, (d) a book is difficult to copy elegantly without specialized equipment and therefore book publishers easily attract authors who wish to be compensated for their work, and (e) the audience of readers are accustomed to buying books.

Although electronic books are available, there has never been a particularly graceful way of reading them. That, I believe, will soon change. A number of companies have tried to devise an electronic device to replace the book exactly.  Meanwhile, a number of websites allow consumers to download many books that are in the public domain.  Storage capacities are increasing so swiftly that soon 1 terabyte drives will be coming to laptops and ipods.

At some point the displays of electronic books will improve sufficiently, download services will be easy enough to use, and the storage capacities of electronic books will be so much better than they used to be, that the book publishing world will be forever altered.

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Letting others use what you don’t use

06.21.06 | issues, personal, tech | Share | Share

I’m a big believer in letting others use what I don’t use, whether it’s clothes, books, or electronics. Someone went through the trouble of creating what I’m not using, and it seems wasteful to just let it linger nearby. Some items are worth selling on eBay or Amazon or elsewhere, others can be given to friends, and some items are more suitably donated. I recently found a site which lets you donate computers to someone less fortunate: http://www.bridgethedigitaldivide.com/donate_individual.htm

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