Thursday, April 12, 2007

Music companies are looking for subscription model

Music and publishing industries can learn a lot from each other. It will be interesting to find out how the subscription model will work with ipod or other devices? What would happen if I don't want to get the subscription service from Universal? Will I still be able the download 1 or 2 songs? In our case we provide pay-per-views access to journal articles.

"Executives at Universal and other labels believe a subscription service could prove more lucrative for them than iTunes’ prevailing model of charging consumers 99 cents per track because it would increase consumption of music. It would also entitle the labels to a share of monthly payments, in addition to small licensing fees each time their songs are played."

The negotiations offer another example of the tensions between traditional media companies that create content and the technology groups that distribute it online. via FT

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