New Business Model - Pay per Download
By admin on Apr 8, 2008 in Uncategorized
OK, pay per download isn’t exactly new. It is of course the model every single executive in the music industry is trying to force feed on consumers. This option has been discussed (and dismissed) for years, I won’t spend much time on it. I just want it on the record.
This is the iTunes model. And Wal-Mart, MSN Music, Yahoo, and the new Napster. And everyone else.
This model isn’t going to last. The reproduction costs are zero. The tools to create and produce the music is getting close to zero. Economics has already driven the price down. There are too many remaining people to get paid.
Why is this such a popular choice?
- It’s the old model and changing viewpoints is hard.
- It’s easy to track for payments.
Why does this model suck?
- Small bands suffer from the lack of recognition and motivated consumers to pay for a download.
- It is susceptible to piracy - a person downloads it and then they pass it to their friends.
If you are a band, don’t rely on this model.

Sorry, comments for this entry are closed at this time.