An interesting view by the ubiquitous Fred Wilson. Good stuff but see my comments below
Link: A VC: Rhapsody Hooks Up With MTV.
Fred Wilson: I" think Rhapsody (or a service like it) is the future of music. It won't be long until we can connect to the Internet from anywhere and when we can, there will no longer be a need to have files stored locally on any device (ipod, computer, laptop, music server, etc). We'll just log into whatever music service we use, decide what we want to listen to, and the music will start playing. That's how it works in my home already"
My comment: agreed but this is precisely why we won't be able to distinguish between streaming and downloading any more. All-pervasive wireless broadband will kill the idea of 'listening only' versus getting a copy / paying for a digital download. Access will trump ownership. Therefore, the labels must monetize ACCESS first and foremost, and only THEN the copies. Remember the roots of Rhapsody are in online radio, and imho that is what needs to be offered first: 'feels like free' on-demand streaming, based on community and advertising support, and only then move into ownership propositions.
Fred Wilson: "...Offer a subscription plan that incorporates an eMusic style DRM free music download service. For those people who do want to continue to own music, Rhapsody should offer "sample and own' plan. For say, $20/month, you get unlimited listening plus 30 downloads a month. And Rhapsody will know what you are listening to and can recommend what those 30 downloads should be..."
My comment: yes, that would be nice, but people are just not going to pay $20 a month for digital music access - at least not at the entry level. $1 / week is more like it, and 'feels like free' is what we need to shoot for, imho. That means ad-support etc, or something like cableTV where we just accept that we are paying (and it kind of becomes automatic). I think Amazon will do this very soon and that will be a real problem for Real. I love Rhapsody too but the labels have really screwed this up for a looooooong time.
On Fred's other points, I totally agree - I just think that, again, music needs to be more like a utility, like water, something that everyone pays for and everyone uses, but that does not create individual payment points everywhere. Based on this ubiquitous access to music, imagine all the stuff you could add value with, and upsell. Read this and watch these.
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