Subscription Music: Are We There Yet?

Microsoft (MSFT) on Thursday announced a new music subscription model for its Zune music player and the big question in the back of the room is this: Will subscription music services ever become dominant?

Sure, there are a few folks that subscribe to their music. And Microsoft has signed agreements with EMI Music, Sony BMG Music, Universal Music Group and Warner Music Group in addition to a bunch of independent labels (Techmeme, statement). The deal: You pay $14.99 a month, you keep 10 tracks a month for your permanent collection and Zune customers keep the DRM free music.

Sounds logical although Microsoft’s Zune doesn’t have the market share to make subscriptions mainstream by itself. I never quite got the “I want to download and own” music mantra. I’d prefer a subscription model since I’m tired of managing a collection. Just get me the rights and let me discover stuff. Then again, I’m only conceptually on the bandwagon since I have an iPod and am not running out to get Napster ToGo, Rhapsody or some other services.

On the whiteboard, the music subscription model looks like a no-brainer. Of course, you’d want access to all the songs in the world. Of course, you wouldn’t use half of them. But that’s half the fun–you could listen to everything. Some experts such as Wharton professor Peter Fader have noted to me repeatedly that the subscription model for music will ultimately dominate. I think he’s right, but I’m like that little annoying kid in the back of the car always wondering if we are there yet.

Comments

[CharlieV:]

Why pay for anything when you can listen to Pandora for free?

2008 Nov 20 03:43 PM