Subscription Services Have Problems With The Service?

February 5, 2008


The LA Times had a good article  about the problems of music subscription services at the moment. Executives of Yahoo!, who announced yesterday that they will drop their music subscription service and will support Rhapsody in the future, admit that they weren`t able to get the customer experience right at the given circumstances.

A summarize of the problems:

– The technology is to complex for the user yet:
— compatiblity  with mobile devices is low
— compatiblity with “home entertainment systems” is very low
— even “software – device” combinations that should work often don`t

– A competitive price is unrealizable at the moment:
— The royalties requirements from copyright holders are too high
— The price point of customers is low (–> There are many free ways to obtain music online)

– “Renting” music is still new for the customers

The first problem is the crucial one. People only will pay for the subscription SERVICE, when the service is great, when it’s better than the “free” options. So… we need a simple “plug and play” solution that appeals to especially the target group with much money, little time and little technological knowledge. In the new “wi-fi world” there should be a solution …


2 Responses to “Subscription Services Have Problems With The Service?”

  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Jason Rakowski

  2. […] I am not sure about that. I don`t know when subscription services finally can handle their problems, but I am sure that “feels like free services” and ad supported models will grow. Why […]

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