Just about every news outlet today was buzzing with information about a digital music collaboration between MTV, RealNetworks and Verizon. The plan is to make a formidable digital music & media rival to Apple’s iTunes. Despite the excellent pedigree of all three companies this will be no easy task. In short the deal calls for MTV to fold its year-old Urge Music Service into RealNetworks Rhapsody Music Service. Verizon comes into play as the service provider for homes (who use Verizon FIOS, DSL, etc.) and wireless users. All three companies will promote the venture through their own channels.
iTunes is the market leader in digital music downloads, with an estimated 70 percent market share. The service remains a la carte - you purchase individual songs and/or albums to listen to on computers and compatible MP3 players (i.e. the Apple iPod). Rhapsody allows individual purchases but also allows for monthly subscriptions - where you can listen to any of the songs in the Rhapsody catalog during your subscription period. The difference between the two plans is ownership, with an a la carte purchase being your ownership and a subscription service a lease of music.
On the same day of the MTV-Real-Verizon announcement, Wal-Mart announced it would be selling some of its digital music offerings for $0.94 cents, without DRM (digital rights management) copy-protection, undercutting the cost of iTunes $1.29 (DRM-free version cost). Copy protected songs are cheaper too a Wal-Mart, cutting a dime or more off iTunes per-song price.
What does this mean to music lovers? Probably not much. While I have a healthy respect for MTV-Real-Verizon’s new venture I just do not see anyone stealing the top spot from Apple’s iTunes. The main factor is all the old DRM music people have. Looking at my own collection for example - I have been using iTunes since it arrived in a Windows format in late 2003. During that time I have bought tons of music. I have also digitized all of my own CD collection. In both cases the Apple DRM is at play on the files meaning I can enjoy them through iTunes and on my iPods. I have nearly 14,000 songs. Do you really think I am going to jump to another provider at this point?
The Wal-Mart option is more intriguing. A lower cost alternative to iTunes, that plays on my current devices definitely interests me and should gain attention, if not some market share. I have not cared much for non-DRM versions of songs from iTunes - I mean I am bought into Apple for music at this point, so spending a couple extra bucks for these copyright-free versions is of no interest to me. The claims of enhanced quality also don’t grab me. My songs sound great in the current format, so I always choose the cheaper, DRM version. But, Wal-Mart offering a DRM-free version of the same song that plays on my iPod? Now that is something I might buy.
For more information please see:
MTV, RealNetworks to Mount Challenge Against iTunes
Music-Selling Rivals Take Aim at iTunes