Digital Music Services 2004 - Page 3

....The debate over business models ignores, in the eyes of some experts, other important steps online services will have to take if they are to survive and thrive. One of those steps will involve figuring out how to bring customers back, according to Mike McGuire, research director, media, at Gartner/G2. "It's the same problem the Samarian grain dealer faced 4,000 years ago. How do I get that guy to come in and buy my grain again next year?" Some sites try to bring in repeat business by having their staff recommend their own favorite songs. "Give me a break," McGuire says. "Who cares?"

The better approach, one that will most likely have to be part of a successful business model, is to create a sense of community among buyers or subscribers - not unlike the sense of community the original Napster as well as Kazaa and Morpheus have created among their users, McGuire says.

....Increasingly, the thinking goes, even teenagers will grow weary of the hassles and gratefully turn to paid services. Says McGuire: "You can compete (with the pirates) by offering music in a convenient way, providing reliable quality and making sure that (buyers) can manipulate it as they like within legal limits."

THIS is what the RIAA should be emphasizing rather than suing customers into submission.

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Article Author: Eric Olsen

Career media professional Eric Olsen is honored to be the founder and former publisher of Blogcritics.org, and former publisher of Technorati.com, which both rule. He is now editor, co-founder, and CEO of The Morton Report.

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Article comments

  • 1 - arik181

    Dec 21, 2003 at 3:48 am

    I do believe that there is room in the American music market for streaming services. I do not believe that I, personally will see streaming as my primary means of obtaining music any time in the near future, nor any time in the next ten years.

    Portability is too big an issue for me. I like having the same music in my car that I have in my house. I like carrying an mp3 player when I go running.

    I also, being an indoctrinate of American culture in many ways, agree with what Jobs says about ownership. I own close to 900 CDs. I am not averse to the idea of switching media, but I do need to "own" the music that I purchase. If RealNetworks goes under in 20 years for some reason, I don't want my music going with it (witness the destruction of the mp3.com library).

    I will want to own the music that I listen to until the day that truly ubiquitous network computing is a reality, or I carry my music around in a chip in my brain.

  • 2 - jhgjmhj

    Nov 28, 2005 at 5:49 pm

    yo small lik panccaks dud

  • 3 - hubalabublabub

    Nov 28, 2005 at 5:51 pm

    this smells like pooo dudes later

  • 4 - DUDESssssssa

    Nov 28, 2005 at 5:53 pm

    where are my pants

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