As You Like It
Published August 12, 2002
Now your software's going to be free, but what about the hardware? Ah, therein lay the profit! Enter into agreements with preeminent hardware manufacturer's to develop various products that will play your software. MP3 players are somewhat commonplace, but if you get Sony or Yamaha to build devices, I think you'll have a sure shot at capturing this segment of the market. People trust devices built by established names in the consumer electronics business.
For instance, most people know that if they buy something built by Sony, they're going to get a superior product that will do more than what they want and not fail. Most MP3 players are built by companies in the computer hardware business, so most people don't entirely trust them. Offer them a superior alternative by a major consumer electronics manufacturer, and they'll bite. Now you might be asking yourself, "How are we going to make money off hardware?" Easy! For every device they sell, you will get a license fee. This fee will not only cover the expenses involved in developing your new music standard, it will also serve in lieu of a copyright fee charged to every consumer who wants to download or "own" a song.
If you can imagine the wide array of audio devices available today, from car stereos to home theater receivers, then you can see what an untapped resource you have just waiting to be exploited. If a manufacturer builds a product that can play your new music standard, they'll have to pay a license fee for the privilege of doing so. Of course, this fee will be passed onto the consumer, but it will be a one-time, upfront fee paid for at the time of purchase, so it won't seem as bad to the customer. I think people would rather have it done that way instead of handing over a chunk of change every time they want to listen to a song on the Internet or download a file from a swapping service. Okay, so you have the software and the hardware fronts covered, but what about distribution? What will become of your cash cow? I'm afraid you're going to have to bite the bullet on this one and accept that you're not going to have the overwhelming influence you once had over this aspect of the music business. That doesn't mean you'll be entirely shutout, though.
Even though your priorities will re-align with your New Plan, you can still work some magic in distribution. For starters, Sam Goody's going to need something to sell since all those CD racks'll be empty. Sam Goody will have to diversify anyway, but I'm betting you can manufacture portable devices that people can take into a record store and plug into a machine to get their music fix. They can choose as many songs as they desire to download into their device at the rate of a dollar per song. Once they're done, either a receipt will be printed out or the relevant information sent to the clerk. Either way, the customer will stop by the clerk's counter to pay for their purchase and be on their merry little way.
- As You Like It
- Published: August 12, 2002
- Type: Opinion
- Section: Music
- Writer: Paul Palubicki
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Comments on this articleComments
Paul-
It's all very nice of you to try and help the music industry find it's way out of the mess they're in, but suggesting that they invent a proprietary music delivery system and use it to retain control of the market ignores their track record.
The industry has a long history of exploitation, both of listeners and performers. I can't believe that you mean to suggest that they continue to dominate music culture.
I'm sure you are aware that there are tens of thousands of recording artists who will never be given a ride by the industry. It's the nature of the business- there is only so much time to promote artists via mass media. This is the industry's strength and its weakness.
The advent of music distribution and promotion via the net signals a brand new era for performers and listeners, one in which there is more choice and more opportunity all around.
Rather than promote a system where control is retained by the few, I hope you will reconsider your position and realise that the mass-marketing model is permenantly broken when it comes to music. Embrace the future, which belongs to all of us.
Jeff
Steam Powered Studio
I agree with your thoughts to an extent, but I think we also have to be practical about things. The large music companies aren't going anywhere anytime soon, so we still need to deal with them.
I was trying to throw out some ideas to make the music conglomerates less antagonistic toward their consumers, which is the only way they'll survive the next 20 years. They're currently trying to compete with their customers rather than a product, and that will eventually kill them in the end.
I agree with you that the Net is a godsend to those songwriters and musicians ignored by the record labels , but I don't think I've seen anything that has really helped these artists out too much. I think the problem lay in the tastes of Americans at large. Americans like the mass-produced music and the crap churned out by the major record labels. Most of your independent artists tend to be on the fringe, at least musically, and enjoy a relatively small following. I don't think the Net has changed this fact. It's only made it easier for those who seek quality music to find it easier.
That doesn't mean I discount the Net as an avenue for artists and songwriters to promote themselves and make some money. I just haven't seen the killer app that blows the old paradigm (I hate that word, but it fits) away and allows these folks to reach a larger audience.
I hope that rambling made some sense to you and I appreciate your thoughts on it. In fact, you've gotten me thinking about a third installment that addresses the issue you brought up. Thank you.
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I'm aware that I got the backwards compatibility thing ass backwards.
"meaning people will be able to play your files on their existing devices, but MP3's won't work on your products."
It should be the other way around.