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iTMS To Add Subscription Service?

Monday September 27, 2004 8:19 am PDT by mudbug
According to MacWorld UK, the launch of digital-music subscription service VirginDigital in the US has sparked a debate about the future of the subscription model for music distribution, with Apple admitting it may consider a subscription service in the future. Speaking to the International Herald Tribune Apple's Eddy Cue explained his conviction that there will always be a preference for the a la carte model, saying: "Consumers have been buying music for 50 years and want to replicate that experience online." Cue then added: "Apple might consider a subscription service in the future but it had no plans to do so now."

The subscription model is less expensive for the online stores to put in place, costing them only 50% of the revenue off each track sale, instead of the 65 - 70% of the sale for a la carte downloads. According to Zack Zalon, President of Virgin Digital: "Two or three years out, subscriptions will overtake la carte because it is a much more interesting proposition. It has just been difficult to articulate to consumers what it is."
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stoid
96 months ago
As soon as any subscription service starts getting anywhere near profitable, maybe Apple should add one. But I think that Steve was right when he said that people want to OWN their music not RENT it. If you know that a subscription service won't work now, but might is 3 years, don't blow the cash on it now, but wait 3 years, and then put one in when it makes sense to.
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Blue Velvet
96 months ago

... It has just been difficult to articulate to consumers what it is."


Because when they find out what it really means... they prefer somehting else instead, perhaps?
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wordmunger
96 months ago
The link in the article to the international herald trib didn't work. For those of you who have a NY times reg, here's a link to their story.
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howard
96 months ago
if a subscription always means that you can't keep the music forever then i will NEVER use a subscription service.

the only subscription service i would ever use is one where you got to keep the downloads, but i don't think that kind of service exists
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stoid
96 months ago
The RIAA must really love this subscription idea that they are trying to make it so easy for online music stores to do it. It's perfect for them really. The get to take the consumer's money, and at the end of the month, the consumer has not one more piece of RIAA product to their name!

It's like renting out the front door of your house to your kids, and making them pay for all the stuff they actually consume. Sure they get a lot of positive things for being able to come inside the house, and can also spend a little extra to get those that they really like (a.k.a. food), but once that month is over you've got their money, and they've got nothing, except what they paid extra for. Maybe not the best analogy though. :o
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Apmonia
96 months ago

if a subscription always means that you can't keep the music forever then i will NEVER use a subscription service.

the only subscription service i would ever use is one where you got to keep the downloads, but i don't think that kind of service exists


There is a service out there that is subscription and you get to keep the songs. www.emusic.com will allow to spend as little as 9.95 a month for forty downloads. (I don't work for them, just to let you know). I just signed up for a trial version, which you must do in order to browse the selection, and found a lot of jazz and electronia that I like. The only problem is that there really aren't too many "big" name artists on there, mostly independent labels and artists. If you like that type of music, this a good way to get some music you wouldn't normally be able to find.

Apmonia
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the_mole1314
96 months ago
RIAA loves subscription services because it allows you to listen to all music, but not have the files on the computer.

More options mean more revenue.
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slightly
96 months ago
I'd just like to remind people that you never really own anything, it's all rented.

You buy a TV? You use it for three years and then replace it. You just paid $20 a month to rent it for a while.
You buy a house? You use it for twenty years and then move (or die). You paid $500 a month to rent that place.
Macs, music downloads and everything else on the planet work in exactly the same way. Don't kid yourself that you ever "own something forever".

Matt
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jbembe
96 months ago

Because when they find out what it really means... they prefer somehting else instead, perhaps?



Yeah, and with 8400 aac files in my collection I hardly think I need to spend time with a subscription service. Simply give me songs that I can't justify purchasing a whole album with and maybe a couple of new release stuff to preview for a new CD. I don't need radio or anything else.
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stoid
96 months ago

You buy a house? You use it for twenty years and then move (or die). You paid $500 a month to rent that place.


Difference. You 'rent' a house, and you can get kicked out, and have to answer to someone else about everything you want to change. You 'buy' a house, you can modify it however you want within the physical bounds of the building's construction, you can take out loans on the value of the house. You can't sell a TV or computer or house that you are renting, but you can if you buy them.
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