Johan Orneblad
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Intangitopia is a knowledge platform initiated by an interdisciplinary group of 5 graduate scholars. Our primary focus is on the use of the legal, financial and technical arenas to leverage intellectual assets, property and capital; in the light of the emerging knowledge economy.
Using the function to show unplayable tracks give me this image of one of my playlists. The red/brown tracks cannot be played. I am in the UK at the moment and since it is country specific restrictions they might very well vary. It might seem as a significant part, and I guess it is. But I also imagine that they will try to include them in the 10000 tracks added each day.
The discussion around regional restrictions should definitely be held but it must be around having them as a general phenomena and not whether or not Spotify should apply already agreed upon contractual regulations.
When it then comes to the record labels and they applying restrictions to music based on geographic territory I think it makes sense in the old economy thinking. When music mainly was (intended) to be sold on physical carriers such as CDs having regional limitations and using different distributors in different areas made perfectly sense.
But today, when music as easy could be downloaded in Gothenburg, London or Doha the restrictions makes less sense. The user will most certainly want to hear the same music independent of where in the world she is at the moment. As well as she would like to share the playlists or suggestions of interesting songs with friends around the globe.
When it comes to Spotify I am not sure if they will be the force that will change the thinking of the whole music industry. But they might at least change the customer behavior which eventually will change the labels, even if it probably will take some time.
Nextopia has proven itself through a new feature on iTunes, where you can see the top content in the store for this year. It is unfortunately not available in Sweden, so I have not been able to verify it. But anyhow, even though the movie The Dark Knight has not yet been released it has outsold all other movies this year on iTunes.
The value of the movie is more likely to be higher when it is out of reach but still at your fingertips. Following the same rational, it will probably sell less and for a lower price just after it has been released. Since we constantly are looking forward to the next big thing, the movie will not anymore be as satisfying if it is accessible for all.
That the pre-order outsells other similar products released in the more common way has been proven several times with the Radiohead album In rainbows released last year. Even though the pre-ordered albums were at a pay-what-you-like-price they outsold the band’s previous album.
In a time when we literally have everything at our fingertips, the things that are the most valuable are the things we cannot get. At least what we cannot get right away.
What we do not have can be imagined to be whatever we want. That is the life in Nextopia.
More and more artists are starting to understand the power of free and that you can with much more on spreading your music than trying to stop the crowd from listening.
The latest in this is Paul McCartney and Guns N' Roses which will launch music on MySpace for exclusive previews. It is for Guns N' Roses the album Chinese Democracy which they will release in the US on November 23 and for the ex-Beatle an album from one of his side projects.
The fact that McCartney is in on this, raises the hopes that the whole catalog of Beatles music will be available digitally in a not too distant future.
But, in line with the development in general when it comes to content on internet, it is access which is important. Not to actually own the music. Keeping the use of the content on a access level will also ease up the rights issues since there will not be any rights handed over to the end licensee. Only a limited time access right which do not imply any more use.
So, we will probably see more of access. Either as free in some aspect or as a paid for service. But access is here to stay.
Spotify opened up to the public about a month ago and has since then received excited reviews. The service builds on either an ad based model or a premium monthly subscription model. Both models have been around for quite some time but the music industry has not yet really embraced them in a good way.
Earlier attempts to stop piracy with lawsuits, drm and other protective measures have obviously not been fruitful since there is almost everything you want on for example the Pirate Bay. To offer downloadable tracks for $1 each is way too much for something which is, although illegal, readily available for free.
Providing full access to almost all songs and still make money on it is a good deal for both the users and the rights holders.
Two of the main obstacles for Spotify are that they do not provide “all” music and that you need internet access. Sure, this will probably be solved in the future. Adding more content to the service must be one of the top priorities for the company. The access problem might be harder to overcome; even though it runs on 3G connection you hardly have your computer with you when running… I do assume the service will be available on mobile devices as well in the future.
The mobile market is already starting to be explored by the large manufacturers offering different deals where the handsets are bundled with music. Nokia’s Comes With Music offer is one of them and Sony Ericsson have similar deals. The device to carry the service is for me of less importance. But the breadth in the offerings of similar services will probably establish an acceptance for the model, both on the consumer side and more important on the rights holder’s side.
We are getting more and more used to that access of information is offered to us, not one at a time but instead unlimited for a specified time. This will bring new revenue models to us, either they are ad based, prepaid or in some other innovative way. We are still in the start of the new economy of access, some have come further and some are just beginning. But the main point is that you cannot any longer stay in the model of providing goods one by one. We are used to choice and instant access and will find the best and most convenient way to get it.
Perhaps Spotify will be a good step on the way.