DRM-free movement snowballs; watch those song prices

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Right now there is stagnation

Like all artificially restricted markets, it is stagnant since innovation and choice is not the motivating factor. The best example, way back when only Ma Bell phones were allowed to be used. You have your choice of black or nothing. In the market today, the high expense of DRM leaves few players. Once the market is opened up, competition will ensue and you will see many creative and successful ways to sell value added with the music itself.

As an example, when the barrier to entry doesn't include $millions in DRM fees and infrastructure, you will get lots of smaller outfits selling music but offering the perks. Why not offer a signed poster if they buy all the tracks from an album? It becomes whole lot easier for cross promotion. Instead of getting free iTunes only when you rent from Avis, you get downloads from ANY store when you rent from Avis.

You will get your high end 320 kbits/sec specialty stores, and the commodity 64 kbits/second stores. You can offer loyalty programs where buy 10 get 1 free, or heck, maybe a points program redeemable with ticketmaster for concert tickets from your MP3 sales from sites X, Y and Z.

There is money to be made, but the current marketplace is not about customer value, it is about control (and general loathing of your customers). Replace the model and you have to compete with value for customers, well, like every other market in the world, once the artificial restrictions fall, the market blossoms.

TripleII

Posted by: TripleII   Posted on: 05/16/07 You are currently: a Guest | Members login | Terms of Use

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