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the new model

Would You Pay A Premium For Fresh-From-The-Oven Music?

THE-NOID.gifRadiohead made headlines, and made music geeks around the world fall in love with them all over again, when they gave fans (crappy-bitrate versions of) In Rainbows 10 days after they'd claimed to have finished the record. Has the music business learned from Thom Yorke and Co.'s lesson in piping-hot music delivery? Well, sort of.

At this year's Mobile World Congress, Rob Wells, Universal Music Group's senior vice president of digital, talked about the idea of giving listeners the chance to hear albums as soon as they were completed, and his idea ran as such:

"If an artist has just delivered an album from studio, we could potentially deliver it to a limited number of users for a higher price. It's something we're quite keen to develop; for example, through our own B2C channels—artists' Web sites."

While I'm well aware that there are economic arguments for promoting scarcity, but something about this idea just seems off to me; not only is the idea of charging customers more money for music an idea that should only be thought of after said customers become reacclimated to paying for music again at all, the potential for piracy is even heightened, given that this model pretty much expands the "press advance" model to people who pay a premium for access. I'm not saying that the music should be given away for free, but it seems to me that this is only expanding the group of people who will have access to early-release music ever so slightly—and using "willingness to pay" as the sole criterion for whether or not people get access to that club will only serve to turn potential customers off even more.

@ MWC: Universal Music Group In Unlimited Access For Long Term; Plans 'Temporal Pricing' [mocoNews.net via Coolfer]


1:00 PM on Thu Feb 14 2008
By Maura Johnston
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10 comments

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  • If any really popular band tries to do this, you will likely get a collective effort from a bunch of fans to chip in to pay the premium for "one user", which will ultimately fail the model. That's just one of many failings with this model.

    Not to discourage brainstorming, but this one's a cul de sac.

  • yeah, wouldn't this just result in albums leaking online for free download even earlier than usual?

  • So what you're saying is, if Doug Morris is The Shmoo, Rob Wells is The Noid!

  • They could potentially sell more if they tighten the promotional cycle. The main triumph of "In Rainbows" wasn't the pricing model, that was a competent stunt, but the fact that everyone heard the record at the same time, just like everyone sees "Lost" at the same time. Someone, maybe here, talked about this being a way for them to beat the whole "leakage" phenomenon. From a business side, they put everyone on the same page in terms of discussion/buying. Right now, things defuse in terms of paying anyone because there's no need to own a record "right now." It's more like "Oh, that leaked. Okay, someone sent it to me/I bothered to find it. Oh, my friend/someone on a board/metacritic says it's good; guess I'll get around to listening to it. Oh, this is at least okay but it has the potential to be something I want in my life. Shit, I forgot I need to do laundry tonight. (does laundry) Wait, what was I listening to? Oh, I should watch that video that I couldn't watch at work..." Two hours later, you have half-an-opinion on Times New Viking (the band this happened to me with last weekend) but no real idea as to whether or not you're a fan. I guess what I'm saying is that very little is really monolithic enough to cut through the distraction anymore. Kicking something at us as soon as it's done and letting the promotion and the sales be simultaneous could defineley make a difference.

  • @Chris Molanphy: "Look Bart, it's the Noid! Avoid the Noid! He ruins pizzas."

  • I would totally by the Noid's album the moment he's done having it mastered.

    As to the general topic... I was going to say more or less what SuperUnison said. The big deal here was putting everyone on equal footing. That's the biggest reason cited by the band for doing what they did. I think they're being sincere there. (Why wouldn't they be?)

  • "hmm, people aren't buying our crap anymore. I know! Let's charge more money and call it 'exclusive'."

    Sad thing is, this might actually work to a limited degree. And of course they'll DRM the hell out of it or watermark it so they can track who seeded it.

  • Isn't this the same as McCartney having advanced releases at Starbux or the White Stripes releasing the "Conquest" EP exclusively at Best Buy or through iTunes? Don't you pay a premium to those places if you want to get the album first before it goes to the Amazon.com discount shelf?

  • I've always wondered why no one tried this with certain movies. I really felt like with the first Star Wars prequel, for instance, they could have done a limited week-long or two-week long run where they charged $50 (or more) a ticket, and gotten a pretty sizable audience willing to pay a premium to see it first, without cutting appreciably into the total audience for the film.

  • @Audif Jackson Winters III: a pretty sizable audience = a pretty sizable number of people pissed off about paying $50 to watch a huge pile of steaming crap.

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