AOL Adopts Napster for Digital Music

In the midst of the changing music subscription market - AOL decide to dump its own MusicNow service and replace it with Napster. This is a clear acknowledgment that their music service wasn't working or they wouldn't be looking outside. AOL will now migrate its roughly 350,000 paying subscribers to Napster's service. AOL also plans to promote Napster with links to its service throughout its free music site, AOL Music.

In a recent report from the by the Digital Media Association - about half of online consumers now spend over $200 per year on music, while nearly 30% spend over $300--significantly more than the average $100 yearly spend before the broad adoption of digital services. So much for the argument that no one is spending on digital music - in the CD market a consumer who purchases 6 CD's a year (valued at approx $100) is considered a significant music consumer.

Other highlights:

• Nearly 60 percent of consumers report that they are listening to more music since they started using an online service.
• The vast majority of online musc service users report that enjoying music over the Internet has expanded their musical tatstes, allowing them to discover new artists and explore new music genres.
• According to the survey, online music listening has increased music fans' overall music discussion with friends and co-workers, with more than 35 percent now talking about music more. And, more than 75 percent of online music consumers report that they have reccomended a particular service to a friend or co-worker.
• The survey also found that listening to and purchasing music over the Internet increases concert attendance. A full 15 percent of online music fans now say they attend more concerts.
• Subscription services have had a difficult time due to DRM issues that annoy consumers. The number two digital music subscription is eMusic - popular in part due to the fact that you can play its downloads on any device. By contrast, Apple's iTunes downloads can only be played on iTunes.

Comments

[...Paul]

http://www.boingboing.net/2007/01/19/record_companies_goo.html

The future of music is going to be dependent on how much the RIAA is willing to "play ball" with modern technology. They're apparently now spouting the idea that if Google can censor what sites show up in search results to conform to the Chinese government's whims, they should be able to block out sites the RIAA deems "offensive" to their bottom line.

Also note:

http://www.boingboing.net/2007/01/08/emi_abandons_cd_drm.html

EMI has already announced they are abandoning DRM on their CDs, and I've seen rumors that at least one other major label is similarly giving up on infecting their products with this anti-consumer crap.

Probably not Universal and Sony, though, who apparently have their heads still firmly planted up their asses:

http://www.engadget.com/2007/01/19/universal-and-sony-prohibit-zune-sharing-for-certain-artists/

"Here's a chance for your products to gain visibility through viral word-of-mouth marketing, by being shared via portable music devices wirelessly... Let's prevent that from working so we can piss off consumers and prevent our artists from getting greater exposure."