Is Apple really this dumb?
Can someone please explain to me why Apple is toying around with subscription models or upping the cost of iPods with unlimited music? Why even suggest that your model isn't working when you are the #2 music retailer and dominant online? In doing so, you open the floodgates to discussion of unlimited music being a more mainstream option. Why is that bad?
#1-Unlimited? Where else have I heard of getting all the music I want without having to buy individual songs? Oh, that's right, BitTorrent.
#2-If you move to a subscription model, you have to compete more directly with Napster, Rhapsody, etc--not to say iTunes can't because they certainly can, but you bring more folks into direct competition.
#3-Will the labels go for it? They haven't gone for eMusic or any subscription-based mp3 downloading site before. They have gone for Rhapsody and Napster, but those services are heavily DRMed, which is against public demand, not to mention you lose your tracks when you stop your subscription. If Apple doesn't allow mp3 downloads, they'll lose a significant chunk of their customer base. If they do, they'll likely have to give more money to the labels than is currently being proposed.
On the other hand, Apple is probably the only company out there with the leverage to find a way around these obstacles. That being said, in the long run they're still competing with free, and they have to be very careful how they pick their punches.
#1-Unlimited? Where else have I heard of getting all the music I want without having to buy individual songs? Oh, that's right, BitTorrent.
#2-If you move to a subscription model, you have to compete more directly with Napster, Rhapsody, etc--not to say iTunes can't because they certainly can, but you bring more folks into direct competition.
#3-Will the labels go for it? They haven't gone for eMusic or any subscription-based mp3 downloading site before. They have gone for Rhapsody and Napster, but those services are heavily DRMed, which is against public demand, not to mention you lose your tracks when you stop your subscription. If Apple doesn't allow mp3 downloads, they'll lose a significant chunk of their customer base. If they do, they'll likely have to give more money to the labels than is currently being proposed.
On the other hand, Apple is probably the only company out there with the leverage to find a way around these obstacles. That being said, in the long run they're still competing with free, and they have to be very careful how they pick their punches.
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