FineTune: The Future iTunes?
Business 2.0’s Erick Schonfeld had an interesting comment this week on FineTune’s alternative business model to iTunes.
Finetune highlights the fact that we’re still a long way from knowing what the world of music is going to look like. It reminds us that as successful as the iTunes/iPod twins are we’re only a few years into a revolution that will surely change the way music is created, published, distributed, and listened to.
Apple has done well because it provided an excellent solution for listeners who loved the device and the music companies who thought selling their songs on the cheap through iTunes was better than having them just ripped off by MP3 listensers. But it is hardly the only solution.
Finetune is appealing because listeners can rent instead of buying songs and in the future might decide to endure advertising, like they do with terrestrial radio, than paying as much. Others will come up with innovations as well.
But don’t think this will all get sorted out easily. The music business involves a series of catalysts each of whom has to provide incentives to multiple interest groups. Music publishers need to appeal to artists and listeners, radio stations need to appeal to advertisers, music publishers, and listeners, and companies like FineTune and others have to get music publishers, software makers, hardware makers, listeners, and eventually advertisers on board.
Expect that we’ll go through lots of iterations before the incentives for all the parties that are involved in delivering music to listeners are in alignment.
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