Executives in the music, Internet and technology industries agreed during the annual Digital Music Forum conference in New York earlier this month that they are still experimenting with digital-music business models, but some key players strongly disagreed with some of the experiments undertaken to date.
Among the highlights:
• Universal Music Group executive Larry Kenswil scolded XM and Sirius Satellite Radio broadcasters for launching time-shifting satellite-radio/MP3 players, which he called “cannibal machines.”
• XM senior VP Jon Zellner doubted that terrestrial radio stations that simulcast multiple digital programs on HDRadio will lessen listener declines to local (or terrestrial) radio.
• Music Choice president David Del Beccaro warned of a consumer backlash if consumers are forced to pay multiple subscription fees to get the same content delivered to multiple platforms, such as PCs, set-top boxes, satellite radios and cellular phones. (note: I agree!)
• CBS Radio programming president Rob Barnett pointed to MTV's initial launch as a commercial-free cable channel and successful transition to a channel with commercials. HD Radio stations plan to offer commercial-free simulcasts “for two years, at least,” he said.
• However, Motorola senior product manager LaSean Smith wasn't so sure. Smith, whose responsibilities include the launch of Motorola's iRadio service, warned that “once people experience commercial-free music, they will not go back.”
related article here
posted by Chris Kennedy @ Monday, March 13, 2006,