Wednesday, March 23, 2005

Music: What's the core business model

The business model that I'm talking about here on this blog is the business model of music in the internet age. How do artists make money off of music in a way that embraces the realities and benefits of the internet.

I thought it was time to reiterate the core business model since I've done a lot of talking about how the features of the system might work. I think those are compelling pieces that will make the whole thing go, but I don't want to forget the core.

-- File sharing is inevitable.
-- Artists wont make music without compensation (or at least as good of, or as much music).
-- People want music.

Business Model:
Users pay a subscription fee to support artists. They designate the artists they wish to continue making music by rating their music higher than others.

That's it, that's the core model. Subscription fees getting disbursed through the rating system.

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