Music Access as Product Bundle

September 24, 2008

Sony Ericsson announced today more details to their new unlimited mobile music service. PlayNow Plus will launch in Sweden by the end of the year and will be available globally next year. Reuters reports, the service will cost 99 Swedish crowns (US $15.24) a month. Subscribers can download an unlimited number of tracks to the handset or to a PC. The handset will sync with the PC using broadband and 3G/HSDPA connectivity.

So here we go. After Nokia, Sony Ericsson is now the second big player in the game. We are just waiting on the iPod subscription bundle and then the transition is officially started. We are on the way to the “music age of access”.

Subscription services didn`t get a huge success on their own yet (like Rhapsody and Napster). But maybe they can find success with a device bundle. Of course there is the second big business model “Free”  with ad supported versions like Last.Fm or MySpace Music and there will always be the illegal “darknet” p2p version of music download, but getting your adored “high end” device subsidized is a big lure for many people to make a subscription contract. I´m sure there will be some devices exclusive with the subscription bundle comparable to the iPhone & mobile provider deals at the moment. If you`ve signed a contract and the music service is great, you wouldn`t want to loose it, because it`s “so convenient”. And most important, the service will “feel like it`s free” after a while.  At the moment, the price per month is still a little bit high, but when the price falls to 5 or 7 Dollars per month, many people really won´t care about this addition to their monthly mobile/internet bill.
And at this point there always comes the obligatory question: Do you know how much money you spend for water usage at home every month? Did you ever care about water costs standing under the shower?

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