More iHate for iTunes
In fact this time around it sounds like an all out war. A month ago I posted about NBC Universal breaking ties with Apple, which I got a lot of heat for. However it is all coming true now. Last time it was just them severing ties. This time they are planning a total attack.
At the helm is one of the most powerful execs in the music biz Doug Morris (Chairman and CEO, Universal Music Group). For this war he is enlisting help of unlikely allies, Sony BMG Music and Warner Music Group. Together the trio will control 75% of the music sold in US. Their plan is to loosen Apple’s stronghold on the digital music business. They want to offer services, which take the music beyond the iPod / iTunes ecosystem and proliferate in other (aka not so successful) portable devices and mobile phones
According to Business Week, the new service will be called “Total Music”. The plan of attack includes a deep partnership with device manufacturers, whereby they can offer “all you can eat” models to the public. The business model includes absorbing the $5 subscription fee in the device costs, hence making the ongoing music cost for free. Morris is basically trying to beat Apple at its own game by taking it to the maximum level. You can catch all the details on Business Week or catch the conversation at TechMeme.
Now quite frankly this has been brewing for some time now. However, I wasn’t expecting a total offense from these guys and frankly such a joint initiative is impressive. I am sure the music execs have been thinking about this for some time now. They haven’t been happy about Apple controlling their online fates by mandating the $0.99 model.
This initiative is also a reaction after recent key announcements from top artists, about going solo. Music industry is under threat and artists are choosing alternate methods of distribution and delivery of their music. Not to mention that more music consumption is digital, compared to CD sales. This effort by Morris and friends is also a desperate move to fuel the industry to get back in the leading position. Bear in mind at this point these are fact mixed with rumors. Actual success of such an alliance remains to be seen.
I must say that the industry has to realize as why Apple has taken such a lead position. It never was a music company and still isn’t. They are all about building great products, which make people’s lives easier. I don’t have to convince anyone about the iPod. It has been such an enormous success launching many years after the first MP3 players hitting the market.
Yes people will love free music, but usability and simplicity are key. The problem with mobile phones, which play music or other portables are that they just simply do not compare with the iPod or the iPhone. The non Apple devices aim at doing one or two things right. However Apple devices do everything the way they are supposed to. In my honest opinion the music industry should only go after iTunes but show love for the iPod.
They have to understand the fact that iPods consumer base is huge and no one even comes close to their experience. I have said this before, when Amazon launched their store. Offer cheap and easy access to music from anywhere on any device. This includes drawing iPod users by offering simplicity along with savings.
So in conclusion, these are very interesting times for the music biz. I will be waiting to see what Apple’s response is to all this. Send in your comments or flares, would love to hear back.
