Wednesday, July 16, 2008

Apple does the right thing with MobleMe rocky rollout.

Today I got an email from Apple about the MobileMe transition from .Mac. Basically they agree that it was pretty messed up.

MobileMe Services are now available

We have recently completed the transition from .Mac to MobileMe. Unfortunately, it was a lot rockier than we had hoped.
Although core services such as Mail, iDisk, Sync, Back to My Mac, and Gallery went relatively smoothly, the new MobileMe web applications had lots of problems initially. Fortunately we have worked through those problems and the web apps are now up and running.
Another snag we have run into is our use of the word "push" in describing everything under the MobileMe umbrella. While all email, contact or calendar changes on the iPhone and the web apps are immediately synced to and from the MobileMe "cloud," changes made on a PC or Mac take up to 15 minutes to sync with the cloud and your other devices. So even though things are indeed instantly pushed to and from your iPhone and the web apps today, we are going to stop using the word "push" until it is near-instant on PCs and Macs, too.
We want to apologize to our loyal customers and express our appreciation for their patience by giving all current subscribers an automatic 30-day extension to their MobileMe subscription free of charge. Your extension will be reflected in your account settings within the next few weeks.
We hope you enjoy your new suite of web applications at me.com, in addition to keeping your iPhone and iPod touch wirelessly in sync with these new web applications and your Mac or PC.
Thank you,
The MobileMe Team

I think this is a pretty decent thing to do. 30 days free more than makes up for the 3-4 days of flakiness the past weekend.

It's also cool that they are owning up to the fact that 'push' doesn't work the way customers envisioned it on the desktop yet.

This seems like a potential new level of openness from Apple regarding problems, and I very much welcome it.

[ update ]

It looks like Apple has started an official MobileMe status blog: http://www.apple.com/mobileme/status/

Monday, May 19, 2008

How Many Times do I have to Buy This?

I have no problem compensating artists for their work.

How many times must I do it?

I have purchased Nine Inch Nail's Pretty Hate Machine album 3 times on CD, and once on iTunes. My first few CDs were lost or scratched, or in storage when I got my first iPod. What are the record companies selling? They keep saying they are selling licenses to listen to a song, but what they are trying to create is an infinite continuum of potential licenses, one for each format, device, thought, or dreamed up service, with them taking their 0.99, 1.99, 3.99 etc at each and every opportunity.

I love Nine Inch Nails. Trent has, I believe, received enough money from me in the past to allow me to continue to enjoy Pretty Hate Machine now, and in the future. Regardless of what new formats or paradigms arise.

Saturday, October 20, 2007

Middlemen

They've been around for a long time now.  They're around in almost every market segment, taking their slice of transactions.  Lawyers are the middlemen between to parties in a legal dispute.  Grocery stores are the middlemen between farms and consumers.  Up until now, record labels have been the middlemen between musical artists and their fans.

Bringing two people together to do business has always been a hard thing to do.  Direct contact between buyer and seller is almost always the best, but sometimes its just really hard to connect.  Enter the middleman (or middlewoman).  New middlemen are popping up all over the internet.  Social networking sites are the middlemen between people trying to connect.  Sites like Digg and Technorati are the middlemen between Bloggers and readers. Google is now the middleman between just about everything (content) and everyone (searchers).

Which brings be back to the record labels.  It used to be if you wanted to make music and get it into the hands of your fans, you pretty much had to go through a record label.  What did the record label really do for you though?  For the most part, they did some advertising, and they got your Vinyl / 8-track / Tape / CD from you to record stores, and then into the hands of your fans.  

With the costs of producing music plummeting, and the ability to do your own advertising and distribution, where's the value from the record labels anymore?

Death of a Record Label

I predict that within 50 years, maybe less, the record labels will look nothing like they do today.  Oh they'll probably manage to hang around, but instead of the media titans they are today, they will be relegated to online bit bucket hosting and credit card processing.  That's really the only thing that's a little bit hard to do still.  The real power will be in the internet's new middlemen.  Google, iTunes, Amazon, these are the places where fans go to look for music these days.  What music fan goes to Universal's website to look for new music?  Bands in the future will simply check the 'music host' option from their local internet service provider, register with iTunes, and then do some advertising and play shows.

Will this mean the end of music superstars?  Probably not.  I think it just means that hype will die down, and only the bands with true talent will last long enough to get their music into enough fans hands to be called superstars.

Will there be more bad music out there?  Probably.  However social networks, peer ratings and the collective audience will quickly sort the good from the bad and allow you to find good music that you like.  Sites like Last.fm are doing this now.

So there's my prediction.  I'll check back in 50 years and see how I did.

Thursday, September 20, 2007

NBC To offer video download service

The New York Times is running a story about NBC offering their own video download service this fall. So it looks like NBC is wanting to get in on the download action directly. At least they're not trying to hide their reasons for it.
“We did this to eliminate the middleman,” said Jeff Gaspin, the president of NBC’s digital division.
NBC seems to be waking up to the fact that the business they are in is media distribution, and that the distribution model has shifted online. Apple saw this much earlier and jumped on it. Now that the model has proven successful, NBC is looking to go it alone.

It will be interesting to see how this plays out. Initially NBC says they will offer shows free for download just after they air. It looks like you only have one week from the air date to download and watch it however, and then it seems they won't let that episode be downloaded. The downloads themselves will be restricted to Windows-based PCs, and will stop working after seven days. It's unclear if that's seven days from the day it is downloaded, or seven days from the initial making available after the air time. This sounds like it makes it impossible to pick up a new show mid-season, then go to NBC and back sample the earlier episodes. If you really like a new show you'll have to hope for re-runs, or buy the DVDs at the end of the season.

It doesn't sound like the free part will last long however. From the NYT article:
But NBC intends to transform the service into a model similar to iTunes by the middle of 2008 - that is, consumers will pay NBC directly to download episodes of the shows.
I will have to reserve judgement on the pricing until it is announced, but I'm not optimistic. One of the rumored reasons for the NBC-iTunes breakup was pricing, that NBC wanted to charge more. I can't really see how NBC expects to charge more that Apple's $1.99 per show, especially if the shows are really only rented for a week.

I will have to test this out on a Windows machine at work, since I don't have one at home. I'll be curious to see if NBC can put together an offering that is as easy to use as iTunes. I'm a little worried about the implications for 'TV Video' downloads if NBCs model proves effective. It seems each of the old guard Networks would likely follow suit with their own video download services.

Apple got out in front of all the old guard media companies, and quickly became the new network, the new aggregator. As a customer, I don't really care about NBC, or Apple. What I care about is a simple, direct path from the content creators to me. If NBC can pull this off, and I can still watch Battlestar Galactica on my schedule instead of theirs, more power to them.

Monday, September 10, 2007

iPhone Price Drop - Go For Market Share

A lot has been said about the recent iPhone price drop. Fairness aside, I think that the price drop is signaling a shift in Apple's overall strategy that's been happening slowly ever since the first iPod was introduced.

Apple is going for market share.

The 90s were plagued by Apple executives creating niche products and being happy with their great profit margins. However the iPod success has given Apple a taste of what its like to be the market leader. Apple sees another opportunity to become a market leader in the phone space, and they know they have to compete on price. Sure they could have held the price of the iPhone high through Christmas, and probably would have ended up making more money, but selling fewer phones. The price drop indicated Apple's desire to sell more phones, not necessarily to make more money. Apple is learning from watching other companies dominate in other markets. Step 1, become the de-facto standard, worry about profits later.

Apple has a long, long way to go to become that standard, but they have a shot at least. Nokia, Motorolla, Microsoft, Blackberry, Palm, etc all have a piece of the pie right now, but it would be hard to argue that any one has become a standard in the way that the iPod has. I don't know if Apple will succeed in this market, but the price drop indicates that they are going to make a serious push to dominate it.

Sunday, September 9, 2007

Music vs. Motion :: Rent vs. Own

(reprinted from my other blog - Nov 2006)

Much has been said on the different models for the various online music stores. Here is my personal take.

Music and video are two very different mediums. Music occupies one sense: sound. Perhaps you could say it occupies touch also if you turn the music up loud enough, but sound is the primary sense. Video occupies two senses: sight and sound. As a result, there are certain activities where you can listen to music, or watch video at the same time, activities that occupy different senses.

Lets take music first. Since it occupies only one sense, sound, we are free to use our other senses for other activities. We can look at things. We can move around. We can't really listen to music and talk on the phone however, those activities overlap senses.

Video is more complex. It occupies two senses, sight and sound. We can't really look around too much, or we miss the video. Moving around is also awkward since we must split our attention between the video and not bumping into things. Running on a treadmil is ok, since we're not really in danger of running into things.

If we look at the activities when one listens to music, we find that in the majority of them, the music is secondary in nature. Riding a bicycle, or driving an automobile; music is there, but it is a background activity. Our primary focus is on a different task. Video on the other hand is usually the primary task. We sit down to watch television, we go to a theater to watch movies. We generally don't do much else while watching the video. Perhaps we eat or drink, but these are momentary, fleeting activities, and still secondary in nature. Exercise might be one of the few activities that could be considered primary while watching video might be secondary.

The frequency of consumption of these two media types takes different forms. Most music, with the exception of classical, tends to be fairly short. Even classical compositions rarely reach the length of a television show or movie. These smaller chunks are more easily consumed, and on a more frequent basis. We can listen to the same song three to five times a week, and not think much of it. Most of us probably enjoy it. However we probably will not watch the same movie that often, much less a television episode, or even a music video.

Since the associated activities, and consumption frequency of these two media types are so different, might our ownership and sales models also be different? Consider the successful iTunes Music Store. Their model for media sales is ownership. We pay Apple a one time fixed cost, and the media is given to us and we own it. (Well we own a license to use the media, but it's a very long term license) We can listen to a song as many times as we want, and we never have to give Apple another cent. Now consider other online media stores. Napster, Rhapsody, and others heavily favor a subscription model. We pay them a monthly fee, and can listen to as much music as we want each month. If we stop paying, we can no longer listen to any of their music.

Now for me.

I like owning music. It takes a lot for me to add a new song or new artist to my library. I listen to my music a lot. At home playing games, on my bicycle, in my car, at work, etc. I probably loop through my music library once ever week and a half or so. The songs that are in my main playlist however I really like, and I want to have them come up in rotation every few days.

Video is another matter. I perhaps own 20-30 movies on DVD. The last time I watched one of them was 2 months ago (Star Trek II: The Wrath of Kahn). I watch a fair amount of television. I got really into Farscape and Angel, and bought a few seasons of them on DVD. I watched each episode once and haven't played them again. I'm currently recording the new episodes of Battlestar Galactica. Since I'm not usually at home in front of my television Friday nights at 10pm, I record the episodes on TiVo, and watch them when I get time. Then I delete them. I enjoy the story, but I don't think I'll ever be really dying to go back and watch them again. Before I got a TiVo, I did buy a few episodes of Battlestar Galactica off iTunes. Again I watched them once and haven't looked at them since.

I want to buy music. I want to rent video. They are different media, offer different experiences, last different lengths of time, and occupy different parts of my senses. Why should we think they should be treated the same?

Saturday, September 1, 2007

Response to Cory Shields

I just sent Cory Shields the following email in response to his recent statement.

From: Mark Fischer
Subject: Source for estimated piracy levels on iPods
Date: September 1, 2007 9:30:12 PM MST
To: cory.shields@nbcuni.com

Dear Mr. Shields,

I am greatly interested in the source for your comment recently:

"In addition, we asked Apple to take concrete steps to protect content from piracy, since it is estimated that the typical iPod contains a significant amount of illegally downloaded material."

I would very much like to investigate the piracy levels on portable music and video devices, but have been unable to find a relevant study. If you have access to, or know of such a study that was the basis for your statement, I would be grateful if you would let me know.

Sincerely,
Mark Fischer