Monday, February 7, 2011
Free Music Streaming Services Don't Seem To 'Ad' Up; What To Do?
"In another sign the economics for purely-free music streamers don’t add up, Last.fm says it will now require a monthly subscription for access to its music via mobile and home entertainment devices."
1) What Last.fm is up against. Last FM, now that it has become a pay service, will have to compete against the billions of free illegal downloads that users have on their computers.
Since counterfeits erode the demand for all legal alternatives, free or paid, Last.fm should be a good “music industry citizen” and help itself at the same time. They would do this by exchanging user registration information with the DCE.
2) Q: Will the new Last.fm business model work? A: Who knows? The DCE is “agnostic” to business models and accepts all licensed music services as exchange members for the greater goal of fighting counterfeits. Although we don’t know what “won’t work,” we do know what “does work” : content creators will see significant amounts of monetization from cooperating with the Digital Content Exchange. The DCE’s cloud-based server is already functional (in beta test) to play a playlist for the user made up of songs that are either owned or borrowed by that user. Every time the owned item is loaned or sold, there is a transaction fee which contains a royalty. A purchase or a loan can happen many times over in the life of a single, registered CD or digital download. Remember the copyright in a piece of music is “life of the author, plus 70 years.” Currently CDs are being sold at used stores many times over with no royalty and digital downloads are being shared with other users with no royalty plus flooding the market with more counterfeits, further denting demand.
Last.fm Will Charge For Music On Mobile And Other Gadgets