Attention! Future Music models without ads

'Music is emotion.' Beware! Persuasion is everywhere! In this emotional state you are seduced to buy stuff! The ad-funded music business models are driving consumers crazy! Imagine you are in love with a beautiful girl. You would only think about this girl while listening to a great love song. But there are some other parties trying to get your attention. The artist is trying to sell his album to you, the brand which is supporting the artist is trying to create some goodwill, the platform is trying to upgrade your account to a premium service and if you go to MySpace you even get some great overlay advertisements while watching the music video.

Dave Kusek just blogged that we have to think of a different music model with respect to the artist-fan relationship. I am afraid the ad-funded business model doesn't fit this need. Too much parties trying to get your attention, a subject Gerd Leonhard blogged about today. Gerd writes it is all about participation, engagement and attention. I think Gerd is right, there will be much more advertisements around content the upcoming months and years. Why? Because the music industry isn't innovating! Technology changed the traditional value chain of the music business into a value network. A network where artists, consumers, record companies, music publishers and copyright societies are forced to work together to co-create a great customer experience. The music industry has just stopped the fight against technology and is now fighting with itself about margins. Still no focus on co-creation and innovation! If you would like to read about co-creation, "The future of competition" by C.K. Prahalad and Venkat Ramaswamy is a most read. Thanks for your attention! Let's start innovating!

The rise of the all-you-can-eat mobile music model

This week Nokia has unveiled the Comes with Music service for the United Kingdom. It launches on the 16th of October 2008. This all-you-can-eat service provides unlimited access to music via your Nokia phone. Sony-Ericsson is offering a similar service: Play now plus. Are this innovative services? Who are profiting from these services? Time to discuss this music model. 

Is this service an innovative music model?

According to Wikipedia 'innovation' means a new way of doing something. But, is this kind of service new? Five months ago the Danish Telco TDC launched a similar music service called 'play'. So, not completely new, but almost. The subscription part of this model isn't new either. eMusic offers a subscription model as well. This model is ad supported and 'feels like free' for consumers. Another subscription model is 'Planet music' a music service of KPN within the Netherlands. Consumers are charged to use this service. So the subscription and ' feels like free' part are not innovative any more. Maybe the 'DRM free' part is a new element? This service is still a walled garden according to blogger David Gerard. Although, this music model is not an innovation, I think you can call it innovative from a rights holder’s perspective. Siliconrepublic.com reports that all the major music labels and major publishers are supporting this service.

Who is profiting from this music model?

This brings me to the next question: Who is profiting from this music model?

• The consumer?
  
• The Telco’s and mobile phone manufacturers? 
  
• The rights holders?
  

They all are profiting! 

• The consumer is finally offered a new music model to consume and discover music, 
  
• The Telco’s and manufacturers are hoping to increase sales of the devices and data transmission
  
• The rights holders are generating new income streams from giant multinationals which are using the content of the rights holders to increase sales by increasing customer (music) experience  
  

But, are consumers really shifting away from P2P networks with this service? Or is this service cannibalizing the sales of other legal music services like iTunes or Beatport? At least it is a nice try and a positive next step for the music industry when it comes to music innovation.