Rich Fiscus
15 Sep 2007 11:28
With CD sales plummeting, Universal Music Group is reportedly considering a subscription based model for music downloads. It would create a P2P network for subscribers to freely share DRM free music files.
Unlike current subscription services like Rhapsody and Napster, Universal's proposed service called TotalMusic would be sold to ISP's rather than individuals. Under the proposal, ISPs would be forced to buy the service for all their customers, which would also require them to raise rates. While this would likely be a good deal for individuals who want the service, it would likely cause any ISP subscribing to the service to lose customers who don't want to pay extra for something they don't use.
While the general premise of a subscription model and P2P delivery seems sound, it's hard to believe that many ISPs will have enough customers interested in getting music from UMG to make it successful. However, with similar ideas coming from Columbia Records chairman Rick Rubin, it may only be a time before a more realistic service that involves all the major labels at least gets tested.
Source: The Register