The future of digital music

[YaSO]

http://quote.bloomberg.com/apps/news?pid=1...GX3z98&refer=us (http://quote.bloomberg.com/apps/news?pid=10000103&sid=anQYO6GX3z98&refer=us)
http://212.2.162.45/news/story.asp?j=10090...756&n=100905810 (http://212.2.162.45/news/story.asp?j=100905050&p=yxx9x5756&n=100905810)
http://www.reuters.com/financeNewsArticle....storyID=4830553 (http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=4830553)

Apple's iPod is selling well; their share is soaring. But, on the other hand, what's interesting is that(I am speculating more or less), they aren't making much money selling music online. I don't think they ever will.

Am I the only one who thinks that Apple is the only company who's making money by utilizing digital music(besides Kazaa)? I really don't think paid service like Napster will succeed. I have faith in the future of digital music, but somehow I just don't believe that subscription service or paid music download is the way to go.

Comment?

[rajc007]

Just this week I made my first online download purchase from Napster.

Pros were a fast download and guarantee of a good quality file. Cons where that I was forced to accept a .wma file, I prefer mp3, and cannot make changes to the track tag. Also there are many restrictions on the file...I haven't even figured out how to burn it to CD without using Napster's software or WMP9.

Basically I feel like I paid .99 for a song with a ton of restrictions. I ended up getting frustrated and downloaded a free copy of the same song from Kazaa <--- I'm guessing it's now legal for me to do that since I own the song.

I really don't mind paying the money for my music, but I don't like the restrictions that go with it.

[YaSO]

Consumer choice should be respected and the business logic should work backward.

I really don't mind paying the money for my music, but I don't like the restrictions that go with it.
I just don't think that the kind of business model Napster has would work. Apple's doing the pretty much same thing, but Apple is in the business of selling iPod that supports formats like mp3 http://www.apple.com/ipod/specs.html, meaning Kazaa users can also use iPod, I think it's a good match, probably better match than Apple iTune + iPod.

When I say consumer choice, that doesn't mean that price also needs to be accommodated, because if you do, you need to make everything free. But the consumer choice as a method, mechanism should be respected. It just doesn't make sense that the business is telling people what to do while people pay money to that business.