Tuesday, March 27, 2007
Digital Music - Dominant Business Model
In the future, I envision the pay-per-download digital music model beating out the subscription model (that is...once the whole DRM issue is solved!). The primary reason is due to the type of content. As opposed to a 30-minute TV show, music is a type of content in which attachment is involved. When a viewer watches a TV show or movie, they are primarily tuning in to find out what happens next. Conversely, when a consumer listens to music, they typically will listen to their favorite song again and again. Consequently, I think the ownership model will win out in the end.