Digital Music Still Has a Ways to Go
More Choices Are Better for Consumers, But Enough With the Scavenger Hunts

By Jason Fry
Wall Street Journal

July 7, 2008

http://online.wsj.com/article/SB121502236051523527.html?mod=2_1571_leftbox


Last week Rhapsody expanded its subscription-music service to include 
downloads (as DRM-free, 256-Kbps MP3s), the ability to preview 25 full 
tracks per month, and tie-ins with the likes of Yahoo, corporate co-parent 
MTV Networks, Verizon Wireless and iLike.

By selling DRM-free MP3s, Rhapsody (a joint venture of RealNetworks and 
Viacom unit MTV) joins the likes of eMusic, Napster, Wal-Mart, Amazon, and 
of course Apple's iTunes, though today the 800-pound gorilla of online 
music can only sell DRM-free songs from EMI -- the other three major labels 
have so far frozen out Apple when it comes to unfettered music, an attempt 
to beef up Apple's rivals and thereby improve the labels' bargaining power.

That's the latest chapter in a soap opera whose storylines of bitterness 
and attempted betrayal are positively Gothic, but at least this time 
consumers are benefiting instead of being punished. Today consumers have a 
growing number of legal, unfettered choices for digital music, and they all 
work smoothly with iTunes. The more likely it is that consumers can find 
songs they want and listen to them easily, the more likely they are to buy 
them instead of swiping them. The overall trend is a welcome one, and 
dust-ups between Apple and the labels (however entertaining they may be) 
are unlikely to derail that.

But the Rhapsody announcement raises questions, too -- ones that have 
dogged digital music for some time. Yes, more choices are better, but 
buying digital music is still a needlessly complicated, haphazard process. 
And why are subscription services like Rhapsody's core product so 
stubbornly stillborn?

I responded to Rhapsody's announcement immediately, but that's because I 
wanted to download a song that only Rhapsody had: the Del Fuegos' cover of 
the Everly Brothers' "Crying in the Rain," an ultra-obscure track by one of 
my favorite defunct bands. Now I have the MP3, and my longstanding bookmark 
of the Rhapsody stream is no more. (One long-sought song down, hundreds to go.)

My quest for "Crying in the Rain" is an example of one of digital music's 
continuing annoyances: Swiss cheese availability. I'm happy I now have a 
download of the song I wanted, but why did I have to try a hodgepodge of 
digital-music services to find it?

One review of Rhapsody's new services dismissed them as unexciting, asking 
what Rhapsody was doing to stand out. To me, that criticism misses the 
point: Digital music is no longer new, and at this stage in the game it 
needs to be less exciting. It should be reliable and simple, and too often 
it isn't.

If you want to buy a song today, you frequently have to hunt through the 
catalog of several digital-music services. Liz Phair just reissued her 
landmark 1993 album "Exile in Guyville" with three bonus tracks, which I 
wanted. But where to go? Napster and Rhapsody didn't have the reissue 
version of "Exile" at all. (And Napster's cluttered, confusing service gave 
me a headache.) ITunes had the "Exile" reissue, but I could only get the 
new tracks by buying the entire album -- for a ludicrous $12. The tracks 
were also album-only at Amazon, though the full album cost a 
more-reasonable $9. But eMusic offered those tracks individually, and 
they'd be included in the 30 downloads a month I get for $12. Score!

Hunting around some more on Rhapsody, I found a 2007 EP by indie chanteuse 
Juliana Hatfield that I'd somehow missed. But wait -- maybe it was on 
eMusic too. It was, so I cleared my Rhapsody cart without buying. Later, I 
checked to see if iTunes had the EP. It did -- and their version had an 
extra track. Retailer-exclusive bonus tracks are a growing annoyance for 
music fans -- with a special place in Hell reserved for whoever 
masterminded the 10 exclusive songs spread across various online, offline 
and Japanese versions of Pete Yorn's 2006 album "Nightcrawler." (To be 
fair, Mr. Yorn encouraged his fans to trade the bonus tracks on his own 
message board.)

The Hold Steady's much-discussed new album? It's iTunes-only right now, 
which at least made my decision straightforward. And no service has freed 
several songs from "The Essential Bruce Springsteen" from the album-only 
shackles -- I check every couple of months. Maybe next time.

Can you imagine if this were the way books or DVDs worked? Picture if you 
had to click around between Amazon, Barnes and Noble and Borders to find 
three different books on the bestseller list, or if a new short-story 
collection came with extra stories depending on where you shopped, and you 
had to find all this out by trial and error. Compared to buying a book or a 
DVD, buying a song online is a scavenger hunt -- exciting, perhaps, but 
also thoroughly annoying.

And there's a larger issue here: Why are the digital-music choices all 
variations on a theme? Rhapsody hasn't abandoned its all-you-can-eat 
subscription model, which lets you browse and listen to millions of songs 
for a monthly fee -- pretty close to the "celestial jukebox" talked up by 
music fans for years. But the celestial-jukebox model remains largely 
grounded, despite its theoretical elegance. Subscription plans like 
Rhapsody's sound, look and feel much like jukebox software -- you can 
bookmark artists, build playlists and do most anything you can with jukebox 
software like iTunes. Who cares that the songs sit on someone else's hard 
drive instead of yours? But for whatever reason, consumers do.

Dave Goldberg, the co-founder of Launch and general manager of Yahoo Music 
before moving to Benchmark Capital, sees subscription services' problem as 
threefold: devices, prices and billing.

He notes that people want to listen to digital music not just at their PCs 
and on their MP3 players, but in the living room and in the car. Yet there 
are still technological hurdles for making a subscription service truly 
ubiquitous -- he sees current services at "an interim stage of 
incompatibility." A related problem, he says, is price -- he thinks current 
monthly prices ($12 to $15 at Rhapsody and Napster to Go) are too high 
given that subscription services are an adjunct to other methods of 
consuming music, not a replacement for them. (This was what ultimately made 
me leave Rhapsody -- I liked the service, but I spent a lot more time 
listening to things I'd already downloaded on iTunes than I did using 
Rhapsody to try out new tracks.)

But it's Mr. Goldberg's final issue that seems most ominous for the music 
industry. He notes that the subscription model should be a good fit for 
kids, who consume lots of music in intensely social ways and are fickle in 
their tastes. But to use such services, they need a credit card. (The same 
problem exists with legal downloads.) By missing out on a young audience, 
subscription services wind up battling with download sites over older 
consumers -- who consistently opt for downloads over streams.

Mr. Goldberg is optimistic that lower prices and technological advances 
will ultimately help subscription services succeed, grabbing as many as 20 
million subscribers instead of his estimate of about 2 million today. But 
he worries that the legacy of not paying for music will limit that success.

"It's really easy to get music free and illegally, and actually hard to pay 
for it," he notes. "Usually it's the other way around, right?"


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu

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