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Universal In Talks With SonyBMG and WMG on Free Music Service On Certain Devices; Possibly Zune

By Rafat Ali - Sat 13 Oct 2007 12:11 PM PST

This came out about a month ago on DMN here, and now both BusinessWeek and Telegraph UK are offering more details: Universal Music Group is in talks with Sony (NYSE: SNE) BMG and Warner Music about launching a music subscription service, dubbed Total Music, that would be free on certain devices, including possibly Microsoft (NSDQ: MSFT) Zune and some mobile devices. The hardware makers (or ISPs or anyone else but consumers) would pay the subscription on behalf of their customers, and for them the incentive is to break the Apple’s (NSDQ: AAPL) dominance in the device and music downloads market.

BW: “In essence, Morris & Co. are telling consumers that music is a utility to which they are entitled, like water or gas. Buy one of the Total Music devices, and you’ve got it all. Ironically, the plan takes Jobs’ basic strategy-- getting people to pay a few hundred bucks for a music player but a measly 99 cents for the music that gives it value--and pushes it to its extreme. After all, the Total Music subscriber pays only for the device--and never shells out a penny for the music.”

UMG meanwhile recently refused to renew its long-term contract to sell music via iTunes, but continues to offer its music on a month-by-month basis.

Posted in: Companies, Apple, Entertainment, Music



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4 Responses:
  • From Drew Robertson Sat 13 Oct 2007 03:02 PM

    If music is a utility that means it’s fungible.  A glass of New York City water in Bushwick is interchangeable with one in the Upper East Side.  The juice that’s running this PC on 52nd Street in Manhattan works the same as the power on 52nd Street in Woodside or Sunset Park.  If music is fungible then Jay-Z is worth the same as Beethoven.  Jazz is the same as Hip-Hop.  No matter what an A&R;guy does he’s not going to sell more Maroon5 to a Total Music subscriber.  I hate most pop, hip-hop and country....so I’m down with the New Order.

  • From xufon.com Sat 13 Oct 2007 07:49 PM

    My guess is that the deals are still on the table to be discuss.  I wonder how well will this kind of model will work out.  I mean if music is like a utility, it’s pretty much like cable and satellite TV, and when you stop footing out the monthly commitment, that’s when the music stop playing.  I think the music industry should keeps their options open, because the more choice a customer has the better for all.  I mean not everyone will be on the same page.  Not everyone will like the new subscribe model.  Sometime just the word subscribe will be putting people off a lot.  If someone approach me or give me a cold call over the phone to ask me to subscribe to one of their magazine subscription, I probably slamming the phone down hard onto the phone-station.  I think…

  • From BJ Sat 13 Oct 2007 10:42 PM

    Valley Wag had a good (harsh) analysis of this: consumers want to play their music on multiple devices, and what if not all your devices subscribe? And if they all do subscribe, then why would the device makers pay for this, since it’s a zero sum game if everyone has this feature and no one device maker gains share, just gets more cost. Personally, I think people want to own their music, like they own a CD.  They dont want it attached to a device whose service provider they may trade in.

  • From dwayne hoobler Sun 14 Oct 2007 02:09 PM

    hate to say i told you so but i wrote an article about a flat tax rate- like 3 years ago...finally the dumb kids are catching up…

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