I have been arguing in favor on the next 3 points in private with many people in recent months: well, BusinessWeek has broken the story:
1) I believe that iTunes would be a killer app if instead of buying music tracks at $0.99 on ITMS, you could actually build your personal library of music tracks (hence only store a reference to them) and listen to them in streaming mode. Kinda like Radio@AOL services but with your own programming.
2) I've also argued that I don't see why people pay $0.99 for a great quality MP3, when they pay as much as 2€ for a stupid monophonic ringtone... (so much for price elasticity). So they are willing to pay more when they go mobile. In addition, I believe a monthly flat fee for the service would boost usage, limited by track by track payments today.
3) Finally, why pay $249-499 for an cute iPod device when you already have a music capable player on your mobile phone ?
BW hints at it... :)
"While the iTunes store offers 99 cents downloads, Apple has yet to provide a subscription service for folks who want to listen to whatever they want for a monthly fee. To stare down a raft of new music players, Apple needs to broaden its product line. It should consider forming partnerships to add iPod technology to cell phones and other futuristic devices."
" Jobs also should rethink his views on subscriptions. He has refused to offer them, saying music fans want to own rather than "rent" their favorite songs. But more than 1 million people now have online music subscriptions. Market leader RealNetworks Inc. (RNWK ) boasts 450,000 subscribers paying as much as $9.95 a month, up from 250,000 in the past year. Clearly, many consumers believe subscriptions are an easy, affordable way to discover new music.
The subscription model may get even more appealing if Microsoft Corp. succeeds with its new "portable subscriptions." Later this summer, the software giant is debuting new software, code-named Janus, that lets subscribers listen to rented music on portable players that use its Windows Media software. While Jobs and many others have doubted that the record labels would ever support this approach, Gorog says Roxio has signed deals with the five big labels. Janus "has the potential of cannibalizing download sales," says a top record exec. Jobs needs to swallow his pride and get in the subscription game so his old nemesis doesn't gain any advantage -- again."
Forbes.com has another story on FM radio on mobile phones. Wouldn't it be time both technologies merged ?
" Nokia reckons that 77% its customers who use the simple radio feature tend to use it about once a week, and consider it important. Now the company wants to make the mobile phone the preferred way of listening to the radio and accessing related content. "
