Top iPad Music Apps (a/o February 8th):
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If MediaNet Digital disappeared tomorrow, the world would hardly notice. That's not a vindictive stab, it's a realistic assessment of the music market today. And, very likely, tomorrow.
Forget about MediaNet's clientele issues. Yes, MTV and Yahoo are now with RealNetworks, and Virgin Digital is now underground. But the real clients - average music fans - are somewhere far away, enjoying music on their terms, in their formats, and with total interoperability. Sometimes that involves the a-la-carte iTunes Store, though most of the time it involves freely-swapped downloads and ripped CDs.
This is a revolution that started nearly ten years ago, and one that has redefined music consumption for good. Shawn Fanning introduced the masses to instantly-available music downloads in the late 90s, with almost no strings attached. Anyone in their 20s or older probably remembers the "before," when music was exclusively available through discrete, physical channels for expensive price tags. Anyone younger has little familiarity with restricted, high-priced media, and many teenagers and children have difficulty imagining it.
Either way, consumers across all age groups are now calling the shots, part of a consumer-driven revolution that has squeezed companies like MediaNet Digital and their subscription-based platforms.
MediaNet, which recently changed its name from MusicNet, was actually started by three majors - EMI Music, Warner Music Group, and BMG - as a reaction to Napster and freely-available MP3s. That effort gained little traction, thanks to limited selection and tight usage restrictions, though the company eventually morphed into a provider of backend digital music services. But throughout, consumers have been demanding something entirely different.
Now, publishers and online music stores are bickering over royalties, and how many pennies should be paid for the usage of on-demand digital songs. They're throwing lawsuits, crying foul, and lobbying copyright judges for favorable percentages.
But percentages of what? Freely-obtained music - from protocols like P2P and BitTorrent - account for more than 95 percent of all digitally-acquired music - at least. And iTunes controls the paid market that remains, leaving everyone else - including MediaNet-powered properties - in the fringes.
Is that worth a protracted royalty fight, one that drains resources into legal fees, endless proceedings, and business protection strategies? Especially at the expense of expansion initiatives, alternative licensing concepts, and the creation of broader, progressive publishing licenses for digital formats? Organizations like the National Music Publishers' Association (NMPA) and the Digital Media Association (DiMA) have narrow charters, and neither is fighting for a broader, next-generation music market - digital or otherwise.
Maybe this is better framed as a fight for the future. After all, won't paid digital music platforms - subscription or otherwise - eventually produce tens of billions in revenues, and even outdistance the heady days of the CD? Doesn't that make this a battle worth fighting?
Perhaps, but that is a speculative bet, and many are placing their chips on a broader music industry approach, one that includes only modest contributions from the actual recording. That includes artists, managers, and now, live concert giants and even major retailers.
These players are moving aggressively forward, and so are consumers. And that could make the current battle between digital music providers, labels, and publishers a fight for scraps - and a distraction away from more progressive licensing and diversification efforts.
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