Universal flaunts Zune to foil iTunes
p2pnet news | Music:- If you believe the mainstream press, a thriving corporate online music market exists with Apple’s iTunes the leader by far.
That’s the one to beat and so, “The world’s most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service,” says Business Week.
‘Subscription’ should read ‘rental’ because it’s a system under which punters pay $X per month for music which vanishes as soon as they stop paying.
Understandably, music lovers haven’t greeted it with wild enthusiasm and there’s no reason to think that’ll change.
Three billion is paltry
The illusion of a Big Time online music industry market is fostered largely by the existence of Apple’s iTunes, the front end loader for its music players.
Touted as a legitimate music service, it’s paid for by users who lose upwards of $1 every time they download a tune for their iPods.
Apple says it’s made three billion sales since 2003, but it’s never offered verifiable statistics to support the claim.
But even taken at its face value, three billion is paltry against what’s happening in the non-corporate world of online music —- the real one wholly ignored by the mainstream media.
There, the action is on the free P2P networks and indie download sites and services, and in excess of one billion songs a day are shared online as mp3s, says an estimate in a 2007 IDC white paper.
If that number seems too much to take seriously, BigChampagne used to offer regular releases with US and global P2P download statistics.
Its stats for 2006 put the average number of files available on P2P networks for download at any given moment at 6,163,551 in the US, and 6,562,440 globally.
And BigChampagne president Eric garland told p2pnet year-over-year stats were:
- 2002 – 4,946,999
- 2003 – 5,518,899
- 2004 – 7,048,102
- 2005 – 8,997,196
- September 2006 – 9,385,967
Old physical product in the new digital universe
Inevitably, one of these days Vivendi Universal (France), Sony BMG (Japan and Germany), EMI (Britain), and Warner Music (US) will address the fact they’re trying to sell tired old physical product in the shiny new digital universe and they’ll come up with business and marketing model to suit realities.
How many more of millions of customers they’ll haemorrhage before they drop their bizarre, fruitless and hugely expensive sue ‘em all campaign as an essential part of the new model is anybody’s guess.
But that event isn’t yet on the horizon and for now, Vivendi Universal US chief Doug Morris (upper right, and who was reportedly paid a massive $18 million in 2005) is still trying to turn a pig’s ear into a silk purse.
With Sony BMG already onside, he’s talking to Warner Music Group, says Business Week.
“Together the three would control about 75% of the music sold in the U.S,” says the story, and, “Besides competing head-on with Apple Inc.’s music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft’s Zune media player and Sony’s PlayStation and by working with the wireless carriers.
“The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music.”
It’ll be a Total Failure, just like all the individual and collaborative corporate music efforts.
Meanwhile, where does EMI fit into Morris’ grand scheme of things?
It isn’t mentioned in the Business Week story but, “Guy Hands, CEO and founder of Terra Firma, the private equity group, which bought EMI in August, told staff in a confidential email, ‘the industry had been too slow to embrace the digital revolution’,” p2pnet posted recently, going on:
Hands’ letter followed the decision by Radiohead, ‘nurtured by EMI but now out of contract with the label,’ to release their latest album online.
In the email, Hands called Radiohead’s action ‘a wake-up call which we should all welcome and respond to with creativity and energy’.”
He also stated the recorded music industry, “has for too long been dependent on how many CDs can be sold,” and, “Rather than embracing digitalisation and the opportunities it brings for promotion of product and distribution through multiple channels, the industry has stuck its head in the sand.”
Stay tuned.
Also See:
Business Week – Universal Music Takes on iTunes , October 22, 2007
shared online – 1 billion songs a DAY shared online, March 8, 2007
p2pnet – Wake up — or die, EMI told, October 8, 2007
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October 13th, 2007 at 11:13 am
Three Billion sales since 2003 ? And they think this is great? This is what is exchanged via p2p each day. (Beside the fact that I believe that they grossly inflated the numbers.)
As far as these parasites of the four big (but shrinking fast) majors they must be smoking somthing because they are desilisional with business plan such as these. Better to enter the business of the perpetual motin machine!
October 13th, 2007 at 11:52 am
Pfft! yup… this is retarded.
Zune was terrible…
October 13th, 2007 at 2:09 pm
“Renting” music is that so hard to grasp? I “rent” my Internet access. I could save offline pages from all my favourite websites, use the Internet really lots for a month then cancel my account with my ISP. I wouldn’t have to pay for Internet anymore. I wouldn’t get Internet anymore. When I stop “renting” Internet access it disapears??? What a bloddy ripoff. I should pay once and own the Internet for life. duhhh
October 13th, 2007 at 5:11 pm
” “Renting” music is that so hard to grasp? ”
Is ‘Fair Use’ such an onerous concept ?
Once I pay for a CD, Fair Use specicies that I should be able to use it any way I wish
for my own personal use.
Once I pay for a Music download, Fair use specifies that I should be able to use it as I
will for my own personal use.
The labels try to dodge fair use with their ‘user agreement’ attempting to bypass the
BUYERS right to fair use.
Consumers .. CUSTOMERS are rejecting the elimination of fair use, by not paying
good money for that which they cannot use as they wish.
People WILL pay a fair price, even when free options exist.
AllOfMP3 is proof of that.
If the labels would use a DRM free, resonably priced model like THAT, well,
they might not have much reason to complain.
They’re just not that smart, I guess.
Duuuh
October 13th, 2007 at 5:14 pm
” Zune was terrible… ”
Not THAT terrible.
If Microsoft eliminated the DRM restrictions on the Zune,
( most notably, the 3 days 3 plays on wirelessly tranferred tunes ),
It COULD have been a Ipod Killer.
The fact that the Zune adds DRM when tranferring, even if it was your own
home recording is what really makes the Zune crap.
October 13th, 2007 at 10:20 pm
I disagree. Zune was terrible… the menu’s, the general look of the product, and the fact that it COMPLETELY ripped off the ipod made it terrible.
80 gigs of storage aint bad, but still… no.
Personally, i hate microsoft. Everything about them…
their attitude, their OS, their console, their portable PC, their MP3 player, and of coarse- the fact that they seem to rip off everyone with everything they do nowadays. Anybody notice that Windows 10 is coming out in 2010? have fun with vista for 2 years.
Vista is a complete ripoff of OSX – Widgets anyone?
Their Console is a ripoff of a dead clock – Freezing anyone?
Their Oragami is a pathetic attempt at taking over the blackberry
the Zune is – in every way – a ripoff of the ipod.
I hate microsoft…
October 13th, 2007 at 10:22 pm
oh. and of coarse- their supporting format.
Gotta love HD-DVD… 30 gigs of storage? that can fit a standard movie, yes- but not if you want FullHD, Loseless audio, and… a movie longer then an hour and a half.
Its honestly amazing Bill has enough money to buy a pack of gum anymore.
October 14th, 2007 at 4:46 am
” I disagree. Zune was terrible… the menu’s, the general look of the product, and the fact that it COMPLETELY ripped off the ipod made it terrible. ”
Really ?
The menus .. worked pretty well in the ones that I have personally handled.
The general look of the product ???
funny .. looks almost exactl like an Ipod, or a Creative Zen Vision:M, or
about a dozen other similar items.
oooooh .. ripped off the iPod , THAT’S you’re problem.
I despise Microsoft too, but I don’t let that hate ignore something that MIGHT have been
good.
I’ll leave mindless hate to the rabid Apple fanboi’s.
October 14th, 2007 at 7:07 am
@Dreddsnik…..You seem to be of the opinion that rental is a good thing! Got news for you, it is NOT! Is it SO HARD for YOU to understand that people want DRM free products and products that stay with them after they have bought them? Is it even harder for someone like you to understand that the subscription service has been basically rejected by the majority of people?
You can make the argument all you want that you rent and ISP or telephone service, but last time I CHECKED, they COULD NOT BE USED ANY OTHER WAY! So it is a stupid argument…move on!
The same is definately not true of music products. You can buy a CD, and play it in your car, your home or anywhere you want. It also does not have stupid, idiotic DRM that you seem to be so crazy about defending! Also, the music industry since it began has always made it’s music in a tangable way that a consumer can keep and own. It is only with the advent of the net that someone thought of a way to rip off the public with this kind of rental scheme.
If you really like the rental services, fine. Be a sheeple and buy into it. But don’t think that everyone is going to agree with you on it or reccomend it, because I certianly DON’T. Even the majority of people who use those services say they do not want DRM…and also the ones who use those services are only a tiny fraction of free p2p files shared everyday online. So that tells me something right there.
It says that people want choice and they are going to have it. One way or another.
It say people want CHOICE and if they cannot have it legally, then they will get it other ways. If you don’t believe me, look at how free file sharing has exploded and ask yourself one question…..WHY?
There ARE “legal” alternatives now, but it seems even the leader itunes cannot hold a candle to free p2p.
October 14th, 2007 at 7:36 am
That’s the the thing. I don’t want to “buy” CD’s anymore. I don’t want to pay .99 for every song and until P2P is said to 100% legal and not some people’s “interpertation” of it I would rather not use it either. So a subscription is an acceptable alternative. I used to buy cassettes and sometimes CD’s and on a limited budget get bored and not like a tiny collection. At least with “renting” I can listen thousands of differnt songs if I want to
October 14th, 2007 at 8:16 am
” @Dreddsnik…..You seem to be of the opinion that rental is a good thing! Got news for you, it is NOT! Is it SO HARD for YOU to understand that people want DRM free products and products that stay with them after they have bought them? Is it even harder for someone like you to understand that the subscription service has been basically rejected by the majority of people? ”
huh ?
From my post ….
” Consumers .. CUSTOMERS are rejecting the elimination of fair use, by not paying
good money for that which they cannot use as they wish. ”
Reading comprehension ?
The rental model is being rejected because it sucks.
Thats what I said. DRM is useless.
Talk to David B the industry shill and Josh the Sony representative.
They’re the ones that don’t mind paying for music that they are not allowed
to excercise their fair use rights with.
” The same is definately not true of music products. You can buy a CD, and play it in your car, your home or anywhere you want. It also does not have stupid, idiotic DRM that you seem to be so crazy about defending! ”
Never have I defended DRM, ever.
Please quote any of my posts that have defended DRM.
Show me.
” If you really like the rental services, fine. Be a sheeple and buy into it. But don’t think that everyone is going to agree with you on it or reccomend it, ”
Never bought into it.
Please quote a post by me that has ever defended it.
” @Dreddsnik…..You seem to be of the opinion that rental is a good thing! ”
Please show me any post by me that says renting DRM laced music files is a good
thing.
You are definitely talking to the wrong guy.
October 14th, 2007 at 8:34 am
” That’s the the thing. I don’t want to “buy” CD’s anymore. I don’t want to pay .99 for every song and until P2P is said to 100% legal and not some people’s “interpertation” of it I would rather not use it either. ”
AllofMp3 isn’t someones “interpretation” of legal.
In Russia it IS legal.
This is because AllofMp3 PAYS the russian versions of the collection agencys that
are responsible for paying their copyright holders.
They pay their fees.
In Russia they are legal.
100%
Not an interpretation, a fact.
People pay them for non-DRM musci files that won’t dissapear.
It is the perfect model for the US labels.
They don’t want that though.
If the labels create their own site using a similar model they will have to
COMPETE with allofmp3.
The C word.
They have to force allofmp3 ( the competition ) out of business first, so when they
set up their own US versions they can charge the same high prices they do
now, without having to worry about some competitor charging less.
AllofMp3.
pays its fess.
completely legal
In spite of Goebbelesque propoganda techniques used to
convince the masses otherwise.
October 14th, 2007 at 6:10 pm
@dreddsnik….I am sorry….I was directing my comments at david b and got your name mixed up in the process.
October 14th, 2007 at 7:47 pm
” @dreddsnik….I am sorry….I was directing my comments at david b and got your name mixed up in the process. ”
Thank you for that, graciously accepted.
My own apologies to you for any snark I sent you in return.
October 15th, 2007 at 10:31 am
“How many more of millions of customers they’ll haemorrhage before they drop their bizarre, fruitless and hugely expensive sue ‘em all campaign as an essential part of the new model is anybody’s guess.”
Until they die and hopefully it will be soon.
October 15th, 2007 at 10:43 am
“Renting” music is that so hard to grasp?”
I guess it is not hard to grasp for RIAA parasites such as David B. but for the rest of us this is unacceptable.
SORRRRRYYYYYYY!
October 15th, 2007 at 11:50 am
Internet “rental” VS. Music rental are not the same.
When you save offline files of websites and disconnect your Internet service the offline files still work. If you rent music and stop paying, the music no longer works.
Problem with rental music is they can take away your favorite song anytime they want.