…from a recent op-ed by Pandora CEO Brian McAndrews on Business Insider:
“Internet radio is sampling and discovery; on-demand is the modern equivalent of ownership. Only that’s where the analogy breaks down. Because today it is far too easy for on-demand consumers to continually “own” music for free. Not just a free trial, but free all the time.”
“…the value of music will continue to spiral downward.”
“Years ago, if anyone could have walked into a record store, legally taken every record home for free, and listened to the exact songs they wanted for as long as they chose, the music industry model would have completely broken down. But that is exactly the situation the music industry faces today.”
“This gray market is unsustainable. If consumers can legally listen to free on-demand music permanently without converting to paying models, the value of music will continue to spiral downward to the benefit of no one.”
“This problem is imminently fixable: limit free on-demand music to truly trial. Countless other industries successfully convert their consumers from limited-time trials to payments. Ad-supported radio models will continue to lead to exposure and discovery, on-demand services will convert a sizable subset of those listeners to subscribers, and we can all work together to banish the gray market experiment of recorded music.”
The full interview here.
Image by joiseyshowaa, licensed under Creative Commons Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0).