A New Music Subscription Model
One of the major flaws of the music industry is how it tries convince consumers to buy CDs. Usually, you hear a song on the radio and feel compelled enough to get the CD. The problem, however, is commercial radio has become programmed crap. This explains why so many people are excited - probably overly excited - about the prospects for satellite radio. So what can be done to create something that works better for the music industry and consumers? How about a subscription service that borrows from Netflix, Columbia House and Amazon.com, while giving consumers a new way to hear and buy music that they would otherwise never would have been exposed to?
The way it would work is people would sign up online for a $15 or $20 a month subscription fee that gives them one CD a month - sort of like Netflix, Amazon.com and Columbia House. They would then provide as much - or as little - information about the kind of music and artists they like, and these choices would be subsequently matched against a huge database. Each month, the consumer would receive an e-mail giving them the option to select one of four or five or 10 CDs (there would be music clips to support the process). The idea is these selections - some of them well-known artists and some unexposed - would be carefully matched against a consumer's musical interests. Consumers would automatically get one CD or CD download a month but there would be a good chance they would also buy a second or third CD if the database music engine does its job properly. This system would give the music industry a powerful marketing tool and an easy and efficient e-commerce engine, while finally meeting the needs of consumers.
For my take on a new business model for the TV industry check out my posting earlier this week.
