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Thursday, October 14, 2004


This doesn't come as a huge surprise, but a new report suggests that interest in buying downloadable music online from places like iTunes seems to be fading. The main reason? All of those thousands of promotions seem to have ended. Apparently, those "buy a Big Mac and get a free download" and "buy a Pepsi and get a free download" type promotions are starting to close up shop. While there was a lot of hype about these music download stores, everyone involved still seems to simply have their head in the sand about what's really going on, and what the real competition is. If they ever do take a step back and see the market for what it is, we should expect to see some serious price drops, along with additional benefits and features for buyers, along with a real effort to use the music as a constant promotion for selling other, more profitable, things. In the meantime, though, most of these companies will stick with the fiction that a buck a song is the right price.

When Real ran their $4.99/album introductory sale on digital downloads, I purchased several. I considered buying 2-3 per week at that price, mainly for the convenience. However, when the $9.99 price structure went into effect, I cancelled my account. I won't pay that price for a digital download, especially with the lack of selections available. Until the price drops, as the above review mentions, I won't be buying, and I suspect many others will not either.


.: posted by Dave 9:44 PM

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