I love MP3tunes and when they announced that they were expanding their service to include 1GB of free music storage I thought it was a brilliant move. The MP3tune service is pretty simple, give them $40 bucks a year and you can upload all the music you have into a virtual “locker”. They store it for you, give you the software to synch it with a bunch of computers and they do deals to make it available via an ever expanding list of interenet connected devices. Its musical goodness.
Back in February I attended a panel discussion with the always humorous, Chief Digital Officer of MTV, Jason Hirschorn. One of the many provocative questions he threw out to the audience was "what are people filling their iPods with" given that only a billion songs have been sold for the 43 million iPods in circulation. Thats less then 25 songs per iPod! Great question Jason.
With all the expensive consultants and overpaid MBA's roaming the halls within media companies you'd think that a few of them would be able to figure this out. Alas, its not to be. Given, that I was once an underpaid consultant and I'm now an inexpensive MBA roaming the halls of a media company, I figure it wouldn't hurt anything if I gave it a try. After "running the numbers" (spreadsheet here), I came up with a couple of answers. One is that the music industry has lost roughly $40 billion dollars in revenue from not aggressively pursuing digital distribution. Read the rest of this entry »