Tuesday, May 13, 2008
Rhapsody America Not in Harmony
The only thing tougher to make money at than selling music subscription services today might be gas guzzling SUVs.
RealNetworks joined up with MTV to build Rhapsody America, but the joint venture is in deep trouble already. According to PaidContent.org, the companies are admitting the complications of joint ownership.
Joint ventures are tough endeavors because each side brings in its own agenda, and often times they aren't in synch. Heck, they couldn't even get together enough to buy the domain name for the service, and execs are diving off the cliff in droves.
Music subscription services are in trouble because of the ubiquity of free content out there and the ability for people to "share" music. Unless you're captive in your car where the only competition is commercial radio (ick) and the dashboard-connected iPod. Even XM/Sirius are having trouble making that work.
The companies should forget centering on a subscription services and create an ad-supported online/mobile music channel that provides customization and target marketing. Subscription services will never go beyond niche industries, so move on. Leverage the heck out of the MTV brand, build community, and offer unique content (live concerts, etc.) that combine both video and audio elements.
There's isn't a dominant online music service, but there should be.
Posted By John Gartner at 12:45 PM
Permanent Link: Rhapsody America Not in Harmony
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