Virgin Media's newly announced all-you-can eat DRM-free music deal with Universal split the office down the middle, with arguments raging over whether the service was a glimpse of the future or doomed to failure.
So TechRadar co-editors Patrick Goss and Paul Douglas decided to take their arguments public by discussing whether the Virgin Universal tie-up is going to revolutionise music consumption in the UK or likely to sink without a trace.
Paul Douglas: Six reasons why Virgin's service won't take off
You'll have to change service provider
In order to qualify for Virgin's music service you'll have to sign up with Virgin Media broadband. Is the service compelling enough to make that switch worthwhile? Additionally, moving ISP means you might lose out on other TV or phone deals if you have a bundle deal from a company such as Sky or BT.
Choice is limited
The Virgin Media music catalogue is limited to that of a single record label – Universal. That's like going to an all-you-can-eat Chinese buffet and being presented with nothing but a mountain of prawn crackers. It's critical that Virgin now establishes relationships with the other major labels to broaden its catalogue.
We're in a recession
Let's say your current broadband package is setting you back £20 a month. Are you really happy to see that increase to £35 a month just so you can download the new Lady Gaga album?
There are already other all-you-can-eat services
Napster has been offering an unlimited download service for years. Called Napster To Go, the service allows you to download an unlimited number of tracks for £14.95 a month. The Virgin service is rumoured to cost the same as 'a couple of albums' – so that's £15-ish, too. Not so new and unique really, is it? The difference is that Napster's DRM only allows you to copy your music to a compatible device - of which the iPod isn't one - while Virgin's music comes without the shackles of DRM, and your music won't become unplayable if you leave Virgin – but is that different enough?
Subscription services aren't in great health
If the subscription model was so popular, Napster would be posing a threat to the iTunes Store, or the iTunes Store itself would have introduced a subscription service. Conversely, music subscription services are in what analyst Mark Mulligan calls a "dire state" which he cites as one reason why Napster is trying to shift its focus onto individual downloads. Last year, Forrester analyst James McQuivey called music subscription services "modern-day record clubs" – he's bang on.
And then there's Spotify…
While Virgin claims its new service is a 'guilt free' way for people to enjoy music (presumably a dig at the pirates who are, of course, utterly consumed by guilt) there's already a guilt-free way to enjoy music and it doesn't have to cost you a penny. Spotify has brought us a world of music for nothing – why on earth would we pay £15 a month to get a fraction of that world from another service?
Your comments (10) Click to add a new comment
paul
June 16th 2009
10. @pimlicosound Gotcha. I don't know the answer though :) My guess is that there will be a minimum contract length to stop exactly what you suggest...
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pimlicosound
June 16th 2009
9. @paul: I mean specifically for the music deal. I'm already on a cable broadband contract with Virgin; if I could add just one month of music downloads, I could stock up!
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patrickgoss
June 16th 2009
8. @gavin - And when one ISP starts offering a service like this then the potential for others to follow increases. Sky are due to launch a music service (which probably won't be mp3) but now they may change that.
It's the impact on the industry as a whole that is most important IMO, not the specifics
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paul
June 16th 2009
7. Virgin also offers broadband over ADSL.
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gavin
June 16th 2009
6. What about the people (a significant percentage) who aren't in cable areas?
Back to the torrent sites for most I imagine.
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paul
June 16th 2009
5. @pimlicosound Yeah, most ISPs have a minimum contract length. I'd image 12 months.
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ducakedhare
June 16th 2009
4. At first glance, it does seem that it is a good idea to find a way of providing the music "for free" whilst tying it to other services, such as the subscription on which you obtain the free content. After all, in every other marktet, that's how "gratis" works.
But the point that there are other places to go to get the same content without changing provider indicates that there is little point to hop over to Virgin's package.
If Virgin is to succeed, there are two points to address:
1/ Added incentive. If they can introduce some time-critical items (e.g. breaking news) with exclusive articles (even if only for a while) that can only be accessed with a Virgin account, there's added incentive to switch.
2/ Most importantly: They really really really need to address their very poor customer service and service provision. Because if they do attract alot of people, that will mean alot more seeing how badly they handle their customer's requests - and building a string counter incentive to their services in general.
Quite frankly, Virgin has good ideas but is all too often sloppy on the folllow-up.
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pimlicosound
June 16th 2009
3. Will there be a minimum contract term, like 12 months? If not, why not pay for just one month, download every single track and album you want from Universal's catalogue, and then quit?
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perseustheseus
June 16th 2009
2. This is another ploy to stop ilegal music downloads which to be quite frank the copyright is confusing to say the least. maybe someone could clarify it. for instance, say I bought an album from HMV ive had it less than a week and it gets scratched. am i able to download a copy of the album without fear of prosectution ? What if i bought an album and put the music onto my ipod ... and then gave the disc to a friend as a gift, who inturn puts it onto his ipod ? I paid for the music legally why cant i give what i paid for to a friend ? How does Vigin intend to police ilegal file sharers ? with thousands of torrent sites and many different applications to open them with I dont see how this is going to be possible.
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2rhyme
June 16th 2009
1. I guess both guys have really good points as the DRM is important but then again it would be pointless if other major labels dont sign up, but time will tell if this is a good move or not, for the media in particular music industry.
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