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John Brandon's picture
John Brandon

Web 2.0 Watcher

Pandora winning the fight for streaming music

Over the weekend, Pandora - the streaming music service - sent out a message to call your congressman about a bill that would give Internet music a new lease on life. Apparently, it worked, with help from NPR and like-minded lobbyist groups, because the House bill just passed. Voting in the Senate starts Monday, and you can still call your Senator.

Also, it's not a done deal, since Pandora still has to work out licensing agreements with the music labels. Yet, it's the most recent call-to-arms from a Web 2.0 site that seems to have proved successful, and will likely mean that the Pandora service continues unabated.

I wrote about the impending death of Pandora in a previous post. I suggested a few fallback strategies for the site, but they stuck to their guns and fought for free streaming, even against pressure from radio broadcasters.

What does this mean for Web 2.0? It seems that, if your site has a massive following, you can mobilize your constituency for a cause. There's hope for "the little guy" and signs that the bit players in Web 2.0 can and will become the dominant forces in media.

One clear example of this is MySpace Music, which could have a lot of ramifications for big box retailers like Circuit City and Best Buy who depend on music buyers to come into the store looking for the new Radiohead in hopes that they will leave with an expensive stereo as well. With Pandora, it could mean expansion into a lot of other areas, a new round of funding, and a lot of momentum.

In the future, all music will be streamed over the Internet. The CD will die a slow and painful death. Each new battle like the one over Net music streaming will lead to finally winning the war, and the ultimate victor is the listener, who has the flexibility to listen to free music anywhere and is not restricted by a hard-copy medium.

One of the major battles, though, has to do with Internet speed. Right now, a few people have very fast connections, but most are running at just under 2 megs. That means streaming and even online stores such as iTunes are limited in the quality they can offer. Of course, the average listener has a hard time distinguishing a low bitrate file from a high bitrate file, but they are not the ones buying 30 new songs a week on iTunes, either. It's an interesting time to see how streaming music will continue to make a push into the mainstream market.

Send an e-mail to Pandora to congratulate them on the victory over the weekend.

What People Are Saying

The flipside to your

The flipside to your optimistic predictions about the future of CDs is that nobody will *own* the music they listen to. You'll be subjected to the whims of the companies you stream from, and the whims of the market in which they participate.

The CD is superior to the internet experience in almost every way, particularly when it comes to actually owning your music. Record labels can't tell you what to do with it. They can't prevent you from listening to it on your own terms, using your own players, in whichever format you prefer. There's no license agreements, no DRM, no your-music-evaporates-when-you-hit-unsubscribe. CDs can't be revoked or recalled.

It is absolutely imperative that CDs, or some other form of unrestricted physical medium, survive. We can not tolerate a world where we are not allowed to own the media we consume. It's so nice to see the futurists forsaking one of this country's greatest rights in the name of convenience.

Future of CDs

The twist is that fans can pay whatever they want for a song - including nothing. Siberry calls it Self-Determined Pricing.
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smithsan
message marketing

We do have alternative

We do have alternative physical mediums to CDs, mainly such as MP3s sold at iTunes. Artists can use this medium to give their audiences the specific high quality music they want to own. The marketplace, as usual, is being forced to be progressive and adapt to the newest technologies and trends, especially since each day there's more technological access in the hands of tech users / consumers. Retailers like Circuit City may need to start selling more high-tech computer sound systems for example, instead of the traditional CD stereo systems; and Artists and Record Labels may have to re-write part of their business models to make money while keeping their music fans happy. The market will need to adapt in order to survive in the face of our new environment, full of savvy tech consumers who demand their music more easily available, shared, on demand, and on the go.

do you not know what

do you not know what physical means? i cant touch an mp3, cant smell it, see it, or throw it. it is NOT A PHYSICAL MEDIUM

Internet and music

Free anything always entices people to like, support and purchase new stuff. The people stealing the most stuff are probably teenagers who probably can't afford to buy it anyhow. But if they are listening to it for free, don't you think it will increase the chance that they'll buy it later because they like it?

Pandora

Will the ultimate victor be the consumer if the music artists have less incentives to make good music if it is just going to be stolen by the internet?

The Grateful Dead were one

The Grateful Dead were one of the first bands ahead of their time who encouraged fans to tape live shows and share the bootleg recordings. They developed a massive loyal group of followers who in turn also purchased the band's CD releases and merchandising items during 40+ yrs. Their shows also usually sold out, and tickets were not cheap. Fans LOVED them for the sense of community and loyalty that this free, open, and creative sharing of music engendered. It made the fans feel like they also owned part of the GD music experience, thanks to the taped shows they shared. Today the internet has music communities asking for similar types of music experiences; whose users are still likely to spend money because they still enjoy owning a high-quality high-tech creative and portable music experience, and they will continue to show their love for the band in merchandising and ticket sales as well.

Good point

The idea of making the RIAA rich while they grab up whatever scraps are left is a HUGE motivator for artists.

Stolen

I think artists are motivated by two things. One is audience size. If millions of people are hearing their songs, they are happy. There's a strong desire in musicians to have their music heard. The second is money, because that's what pays the bills and allows them to pursue their passion. i think MySpace Music is a dominant force because it hits on both of those.