For years there’s been speculation that Apple would supplement their $1/song (now $1.29) iTunes business with a monthly subscription service, but their upcoming plans are quite different and once again are positioning them to lead the digital music industry into a new era. Leveraging their ubiquitous iTunes software Apple plans to upgrade their users almost over night to a cloud music service in an ambitious move to beat Amazon and others to a cloud music service. Record labels are wary to give Apple even greater dominance which is why Apple’s new strategy is designed to sidestep new licenses from the major labels.
Apple’s recent acquisition of digital music startup Lala rekindled speculation of an iTunes subscription service. There’s no shortage of subscription offerings (Napster, Rhapsody, Spotify, Pandora, etc), but none have attracted the millions of subscribers necessary to make the high royalty structures work. Experts have pondered that Apple’s design expertise and hardware integration could make subscription work. And leveraging Lala’s digital library, licenses from the major labels, and a management team who cycled through several business models including the ten cent web song rental could make it a reality. It’s a logical assumption, but after talking to a wide variety of insider sources it’s clear there is no upcoming Apple subscription service and Apple has far different plans.
Lala will play a critical role in Apple’s music future, but not for the reasons cited above. Lala’s licenses with major labels are non-transferable, so they’re not usable for any new iTunes service. The 10 cent song rental model never gained traction and does not cover mobile devices thus is of little value to Apple. What is of value is the personal music storage service which was an often overlooked component of Lala’s business. As Apple did with the original iPods, Lala realized that any music solution must include music already possessed by the user. The Lala setup process provides software to store a personal music library online and then play it from any web browser alongside web songs they vend. This technology plus the engineering and management team is the true value of Lala to Apple.
An upcoming major revision of iTunes will copy each user’s catalog to the net making it available from any browser or net connected ipod/touch/tablet. The Lala upload technology will be bundled into a future iTunes upgrade which will automatically be installed for the 100+ million itunes users with a simple “An upgrade is available…” notification dialog box. After installation iTunes will push in the background their entire media library to their personal mobile iTunes area. Once loaded, users will be able to navigate and play their music, videos and playlists from their personal URL using a browser based iTunes experience.
Apple will link the tens of millions of previously sold iPods, Touches, AppleTV and iTablets to mobile iTunes giving users seamless playback of their media from a wide range of Apple branded devices. Since media will be supplied from the user’s personal collection, Apple is freed from the hassles of device and region limitations. iTunes shoppers will be able to continue to buy music and movies as they can now with purchases still being downloaded, but once downloaded they will be automatically loaded to their mobile iTunes area for anywhere access. Again because users are in possession of the materials no new licenses are required from the record labels or publishers.
Some are curious why Apple with thousands of engineers would need Lala talent and technology. For sure Apple could copy Lala technology, but time is of the essence and Lala lets Apple move faster in transitioning from their PC software business to a cloud service. They get a knowledgeable digital music engineering team, plus a code base to build upon which already does uploading and web playback. There’s precedence for this strategy. The iTunes software did not originate within in Apple but came via an acquisition. Finally, Apple gets the quick witted, brilliant, but occasionally loony Lala CEO Bill Nguyen
who will play a future role in Apple. (Although one wonders how Jobs and lime light relishing Nguyen can co-exist.)
It’s critically important that technology companies build and maintain a core strength. This cornerstone allows them to command a significant portion of the profit stream and is a beachhead to launch other initiatives. Think Amazon/e-commerce, Microsoft/OS, Google/search, Apple/media. Jobs is keenly aware of the digital transition from PC to cloud centric programs and services. It’s imperative Apple lead in this transition or risk ceding leadership in media to others such as Amazon, Real, Microsoft, Yahoo, etc. Lala will help Apple protect their media franchise from encroachment by accelerating their cloud efforts. iTunes users can expect mobile iTunes in 2010.

MP3 co-creator wants to smarten-up dumb devices

Mobile content delivery company Myxer
Myxer is getting into the marketing arena with the launch of MobileStage, a suite of mobile marketing services aimed towards the music industry. The suite of services includes app marketing, analytics, mobile website creation and fanlist management
Myxer says that they are aiming to create a “MySpace Music for Mobile” with MobileStage. The suite is fairly comprehensive and aims to create suite tools to artists to better expand and analyze their mobile offerings. Part of the deal is that Myxer will promote artist apps to its user base of 30 million customers via its own mobile site. Myxer already works with artists for its ring tone and mobile content business. Myxer just delivered 10 million ringtones to users and offers over 2 million free ad-supported ringtones, wallpapers and videos. Users can also make their own ringtones, videos and wallpaper from music and files a customer already owns.
MobileStage is launching with several partnerships with musicians and digital platforms, including ReverbNation, Kedar Entertainment, Amie Street, SonicBids, OurStage, INgrooves,The Orchard, Audiolife and SellaBand. MobileStage also plans to offer full-track downloads, streaming audio and video, as well as links to artist merchandise outposts, concert ticket purchase options and more in the future.
Average American Consumes 34 Gigs Of Data Per Day; Good Thing ISPs Want To Limit You To 5 Gigs/Month
from the unworkable dept
There's a new study that's making the rounds, noting that the average American consumes about 34 gigs worth of data/information each day. That number has been increasing at a pretty fast pace as well. This is, obviously, not just internet data. It includes TV, radio, mobile phones, newspapers, video games, etc. However, what struck me is that more and more of that is moving to the internet, and that seems like a trend that will continue. And, yet, we still hear stories of ISPs looking to put in place broadband caps that are as low as 5 gigs per month. Clearly, something has to give. Even Comcast's relatively generous cap of 250 gigs per month could run into trouble at some point as well.
And, indeed, this is part of what concerns me most about efforts to put in place broadband caps. As we consume more data and a growing amount of that data consumption moves to the internet, more and more people may find themselves butting up against those caps. Even though plenty of studies (and many comments from the technology -- not policy or marketing -- people at ISPs) show that ISPs can easily invest in infrastructure upgrades to keep pace with the traffic, the move to put in place broadband caps may create serious unintended consequences for broadband. They add a mental transaction cost to any kind of internet usage (you have to think if it's worth it) and limit the interest and/or ability to build newer, more powerful internet applications and services that can serve what we need.

Name: Glyde
Quick Pitch: Glyde combines the great deals of a person-to-person
online marketplace with the ease, simplicity and safety of a retail store.
Genius Idea: Glyde makes it easy to buy and cell CDs, books, DVDs or video games, without the hassle of listing fees or finding a trusted seller.

Like a lot of people, I’m a big media fan. I have an ever-growing collection of DVDs and Blu (
)-ray discs, music CDs, books and video games. I’m always on the lookout for a good deal and also for an easy way to sell items I’ve either upgraded from (like going from DVD to Blu-ray) or that I no longer want or need.
It’s not hard to find items to buy, but as places like eBay become more like regular retail sites, the deals that you could find 10 years ago just don’t exist anymore. To get around high listing fees, more and more sellers charge really high rates for shipping, even though they just end up sending stuff by Media Mail anyway. Selling items means I have to get all the shipping stuff together to mail out an item, which can be a hassle if you aren’t a frequent seller.
This is why I like Glyde, a new marketplace that makes it super easy to buy and sell media. Think of Glyde as a listing service and an Escrow service combined into one. You can list your items for free and when the item sells, Glyde will take 10% of the sale price and the cost of the Glyde Mailer. What’s the Glyde Mailer? When you item sells, Glyde will send you a pre-stamped, pre-addressed Glyde Mailer. All you have to do is drop you item in the envelope and mail by the next day.
As soon as the buyer receives the item, money is deposited into your Glyde account. That’s a really hassle-free way of selling new or used media items.

For buyers, your payment is protected until you get your item. Glyde tracks your item and sends you an e-mail upon delivery. If you are happy with your item, Glyde releases your payment to the seller. If you don’t get your item, you get a refund. If you aren’t happy with what you received, you have 48-hours to return the item.
A really interesting part of Glyde is its transaction policies. There’s always a risk when buying or selling an item that something either won’t be as it is described or that a buyer will renege after receiving their purchase. Glyde handles this by enforcing a shared responsibility approach. If you receive your item (and it isn’t suspected of being counterfeit or illegal), you can return it and be reimbursed the item cost, but you pay half of the return shipping (around $2.50). The seller pays the other half of the return shipping fee, plus the cost of the mailer ($1.00 – $1.75).
If a seller consistently gets bad feedback or items are sent back, Glyde can cancel their account. If a seller sells something that is illegal or a counterfeit, all fees are charged to the seller and they are banned from the site and authorities are contacted. I like this shared responsibility approach because it gives everyone an incentive to list items accurately and take buying an item seriously.
Overall, Glyde’s website is attractive and easy to use. I especially like how Glyde has combined an Escrow service with a listing service.
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iPhone Streaming Radio Services Compared
Many of the major players in streaming personalized radio have developed an iPhone application since the release of the iPhone App Store. After waiting a few months to let them work out some kinks and with the release of Slacker’s app this week, i thought it would be a good time to dive in and compare some of these services.
Last.fm is my choice for best of class. Even though it lacks some of the editorial and genre stations provided by other services, it makes up for it with tag radio, recommendations and artist information. However the main reason I use it over the others is that Last.fm is directly tied to my iTunes listening (my main consumption arena) so the recommendations are the most representative of what I’m listening to day to day.
Pandora provides some excellent programming as well and their “Quick Mix” station provides a good stream of recommendations based on other stations I have created. The simple UI and basic feature set make it super easy to use.
Slacker, the newest entry, is a slick and rich experience. The combination of editorial, genre and artist/song seeded stations provides lots of choice. the ability to fine tune each station is an excellent differentiator. The addition of artist bios and album reviews provides great non-audio discovery mechanisms. The ability to see the next song is also a very nice feature.
Deezer doesn’t have much going for it in terms of a broad feature set. The main reason I use it is something I assume is due to it’s French origin – the recommendations are similar to other services but somehow different enough – I seem to discover some interesting bands I don’t think i would encounter with the others.
Finetune’s iphone app is pretty similar to their website and desktop application. In addition to some good editorial stations (e.g. Best of 2008 genre charts) and artist radio, you can also access your own playlists. unfortunately you cant add items you hear on stations to those playlists. There isn’t much else here feature wise but again worth checking out to see if you like their recommendations.
| Feature |
Last.fm |
Pandora |
Slacker |
Deezer |
Finetune |
| Editiorial Stations |
|
|
• |
|
• |
| Genre Stations |
|
• |
• |
• |
• |
| Subgenre Stations |
|
• |
• |
• |
|
| Tag-based Stations |
• |
|
• |
|
|
| Artist-based Stations |
• |
• |
• |
• |
• |
| Song-based Stations |
|
• |
• |
|
|
| Recommendations Station |
• |
• |
|
|
|
| User-based Stations |
• |
|
|
|
|
| Saved Stations |
• |
• |
• |
|
• |
| Recent Stations |
• |
|
|
|
• |
| Bookmarks/Loved Songs |
• |
• |
• |
|
|
| Album Reviews |
|
|
• |
|
|
| Artist Bio |
• |
• |
• |
|
|
| Related Artists |
• |
|
|
|
|
| Events |
• |
|
|
|
|
| Listeners |
• |
|
|
|
|
| Tags |
• |
|
|
|
|
| Ads |
|
|
• |
|
|
| Skips |
Unlim |
5/hr |
6/hr |
Unlim |
5/hr |
| See Next Song |
|
|
• |
|
|
| Bookmark Song |
• |
• |
• |
|
|
| Rate Song |
• |
• |
• |
|
|
| Share Song |
• |
• |
|
|
|
| Tag Song |
• |
|
|
|
|
| Add to Playlist |
• |
|
|
|
|
| Buy on iTunes |
• |
• |
• |
|
|
| Finetune Station |
|
|
• |
|
|