To get an idea of where music is headed online, it’s important to understand history. Let’s think back to the time when music downloads first became popular. For me it was stimulated in the early days of Napster. Everyone was going crazy grabbing all the music they could find with no consequences. Then the RIAA came along and said, “wait guys, that’s our copyrighted content you’re downloading.” Since then, the RIAA has been fighting an uphill battle to put an end to copyright infringement.
After the early days of Napster and peer-to-peer file sharing, a new generation of sites offering legal music downloads emerged. Even Napster went legit by signing deals with major record labels to offer unlimited access to their offerings. To make this a reality, the recording industry had to come up with a way to protect their investment.
Digital rights management (DRM) has arrived. New DRM technologies have been used to limit access to media. In essence, as long as you’re a subscriber to Rhapsody, for example, you can download and listen to as many songs as you like. You can even play them on your mp3 player (excluding iPod and Zune). DRM kicks in by restricting the number of devices you have access from, and cutting off access entirely when your subscription ends.
Additionally, companies chose to run their own brand of DRM. This means that if you own an iPod or Zune player, your options are very restricted. Apple and Microsoft go to great lengths to force you to use iTunes and the Zune Marketplace.
In the last two years things have changed quite a bit. Online retailers, including Amazon and Wal-Mart, have signed deals with major record labels to sell DRM-free song downloads. The key here is that you are paying a fee for each MP3 song you download, but you get the music without any DRM restrictions. Even iTunes has started offering DRM free downloads.
Another challenge facing online media companies is the ISP’s battle to reduce network traffic and thus reduce congestion during peak hours. The lack of network infrastructure, particularly in the US, is a major concern. Limiting traffic or charging customers for metered access, as Comcast and Time Warner are currently testing, could drive customers away. We no longer live in a world of text email and static web pages. The sites now offer rich content that includes streaming audio and video, social integration, and an interactive environment for people to meet as they would at their local watering hole. Hopefully, customers will voice their concerns and ISPs, in turn, will expand their network infrastructures to meet our ever-increasing bandwidth needs.
Where does this lead us? I remember mentioning the excitement about the future of online downloads before my rants. Online music sites look to the future. With the ability to download songs to PC, mobile phone, or other web-enabled devices, you’ll have access to the latest songs anywhere, anytime. Sites like eMusic, Amazon MP3, and Wal-Mart Music have shown that DRM-free music is the way of the future. The next step will be to find a way for sites like Rhapsody and Napster to offer unlimited access to DRM-free music for a monthly subscription fee. I’ll be the first to admit that this is not an easy task, but one that could prove very profitable for the music industry in this ever-growing digital age.
The excitement extends beyond music, as companies like Netflix offer a huge selection of free movie downloads for subscribers. We’re not talking about just looking at your PC, either. With a set-top box, you can download movies to watch right on your TV. Industry experts predict that in a few years you won’t be going to your local video store to rent the latest DVD movies. Instead, you will simply watch them at any time on demand via download. Alright, I can hear some of you say yes, but how long do movies take to download? I can tell you that with Netflix I can start watching about 30 seconds after the download starts. The rest of the movie downloads while I enjoy it.
In conclusion, the future of online media shines bright. Customer consumption habits can help record labels and ISPs accept that the future of music and movies is online and not in record and video stores. The instant gratification of having access to millions of songs or thinking of a movie and seeing it a minute later is enough to make you want to stop writing. So sit back, relax and enjoy what the future holds for you.