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But the U1 angle is interesting, because having your music online may lure a lot of people to sign up for U1. Storing 7digital songs in U1 is great business, because they have to store each song only once (+backups) in their infrastructure so with a few terabytes of music on EC2 they could provide U1 songs for millions of Ubuntu users, as long as the songs are from the same source. So hosting synced songs from one source is a very high margin business. (Otherwise you have to have song fingerprinting etc to keep your storage requirements low .. that probably the reason Apple bought Lala.com)As for U1 in general and the store in peticular I think most of Canonicals products are very rough around the edges for the first few releases (U1 in karmic totally sucks compared to dropbox, but they will get there) The Ubuntu One music store and free software for profit Posted Mar 11, 2010 17:27 UTC (Thu) by jspaleta (subscriber, #50639) [Link]
In fact I would assume that the business plan here is to have song purchases consume as much space as possible and count it against each user individually. in order to entice people to pay the U1 subscription fee for additional storage beyond the free 2 Gig. I think Canonical is banking on recouping costs via the U1 subscription fee for moving beyond the free account storage limits. But Canonical doesn't like talking about how it actually makes/loses money...so its just a valid to speculate about per-song revenue as it is to speculate about subscription fees. 7digital's public per song revenue affiliates program is only for driving traffic back to the 7digital webstore using the public API. This public affiliate program is probably how Songbird developers get their 7digital kickback...but storefronts like U1MS which make use of the 7digital business API can't participate from my reading. I'd welcome some clarity on that point. Knowing that Canonical was getting a cut of song revenue could make a difference on how people choose to buy music. If you knew you had a choice of purchasing music via mechanism that gave money back to open source developers versus one that did not..would you choose the mechanism with the kickback to developers?Whatever arrangement Canonical has with 7digital to make use of the business API is private. But from the 7digital literature it sure seems more likely that Canonical has paid 7digital to get access to the business API. The Ubuntu One music store and free software for profit Posted Mar 13, 2010 16:34 UTC (Sat) by kragil (guest, #34373) [Link]
Cash strapped teenagers are topping up their music collections with cheap legal downloads, as online music outstrips CD sales.A rash of copyrighted music download websites have launched in China over the past few months, offering rapid access to the latest pop hits for around one yuan (13 US cents) per song.Of course Internet search engines can still pick up illegal free download sites, but all the talk of intellectual property rights (IPR) makes some people feel guilty about stealing music online.Instead of breaking the law they can now visit legal sites such as top100.cn, which boasts a million-song catalogue.Browsers might be looking for Taiwan heartthrob Wong Leehom, for example. And sure enough, he's there, with his latest album, "Heroes of Earth."And here lies the new media's real selling point the entire album can be downloaded for 10 yuan (US$1.25), opposed to about 40 yuan (US$5) to buy the CD.A number of copyrighted music download websites, which buy songs from record labels in the hope of targeting the mainstream market, have set up shops since late last year.MP3 maker Huaqi Information Digital Technology opened aigomusic.com in October; established music website 9sky was re-launched in January; and newcomers A8.com and top100.cn joined the race in March.Tencent, which runs the popular QQ online chatting service, is also testing the waters before launching its own music download service.The excitement over Internet music distribution is hardly surprising with Apple's iTunes setting the pace overseas. International Federation of Phonographic Industry (IFPI) figures show that global digital sales almost tripled last year to US$1.1 billion compared to 2004, accounting for 6 per cent of recording companies' revenue. Page: 1234
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