I totally agree and also with murraybiscuit’s comments. In fact, if you consider things like Apple’s “Cocktail” http://news.cnet.com/8301-13579_3-10296024-37.html we are already moving to the next step in digital music. The industry is seeking new, innovative ways to promote and in fact sell music and related products online.

I believe that a big influence on why the average person would ‘steal’ music instead of buying it is because it is simply much easier to get it free with my computer than it is to go to a store and buy it. The success of the iTunes store is testament to this. Genius suggests the songs and you can get them cheaply with a single click. I believe that ease of use, and not price necessarily is the difference here.

Nokia music store is a step in the right direction, especially in SA. However, considering my ease-of-use argument, the generally accepted direction of digital music; if we examine the situation in SA and our frustrating technology lag, I am discouraged.

I point my browser to http://music.nokia.co.za/ and it tells me my browser is not supported. There is no iTunes music store in SA. Even the AppStore seems to be… limited… I put a locally produced (local artist) CD that I tediously went out and bought from a CD store, into my computer and the artist and tracks don’t resolve or resolve incorrectly.

I consider myself tech savvy and I don’t really mind jumping through the hoops because I believe in supporting the artist. But I’m afraid, from a connected consumer perspective, it is about ease of use, ease of access – the user experience. They probably care less for what the music industry is going through and more about getting that latest album, and if you can make it fun for them in the process, they would keep spending money with you.

The music industry has to get with the program, yes, and I believe they are, albeit slowly, kicking and screaming. But more importantly for us I believe, is that the industry in SA, tech and music is lagging behind what advancements have been made. Let’s contribute to and hope that we can make a difference with conversations and publications like this.

DRM is really just a way for Labels to limit the power of Resellers. It’s the only leverage they hold over the people who actually have relationships with their clients. When resellers realise this, they can start acting in the consumer’s interests rather than that of Labels.

What’s beyond DRM? Google has started free downloads in China. http://www.nytimes.com/2009/03/31/technology/companies/31music.html. Interesting approach.

In my opinion, pay-for music has to reposition itself and present an irresistible value proposition to consumers:

1. Be easier than torrent clients – better searching, greatest range, quick downloads, wider range of formats… throw in some free tracks to get me hooked on the artist. actually have some decent music videos rather than johnny’s youtube slideshow with a soundtrack.
2. Be cheaper than it is currently – clearly, trying to inflate costs to cover lost revenue isn’t working.
3. Offer something that pirate services don’t (and can’t) – perhaps more interaction with the artists themselves, or value added services, e.g. create your own radio station online and start a social dj revolution. Sell compatible devices, create a protocol, develop an industry around this technology. Keep the standards open.
4. Engage consumers at a higher level. Treat them as Patrons rather than Paupers. Apple’s Genius function is a great example of this. Consumers will eventually be more concerned with quality rather than quantity. When you have every single track in the world, how do you actually sift through the rubbish?
5. Think beyond making money off licensing. A bunch of free tracks with ad revenue is better than no free tracks with no ad revenue. Perhaps building free tracks into the cost of everyday purchases makes it less of a grudge and more of a bonus.
6. Create percieved value around legal behaviour. Ultimately, a track is a track. But if other people know that you’ve been downloading legally, a track becomes a means to social furtherment and affirmation.

Do I feel sorry for labels? Well, people are probably losing their jobs. That’s sad. But industries need to respond sooner to change and the cheese moved a long time ago, partly due to their policies. The digital camera revolution is a classic example where some players were able to adapt and others fell by the wayside because of their attitude to change.