Napster may have struck a sour note with artists, but peer-to-peer music delivery services could allow Internet access providers to sing a profitable new tune.

Rather than giving up on the idea of peer-to-peer file sharing as an online service, I think that the analysts, investors, service providers and even consumers should take another look at music on the Net and see what's coming around the bend.

Hard rock knocks
We've learned some hard lessons about what works on the Web, and what doesn't. For example, using unknown artists' recordings will not attract hordes of users to your Web site. It's been tried many times in many ways, often failing to attract anyone's attention at all.

Some Internet companies even used unknown artist content to sell advertising, while others tried to sell the music itself. One thing remains constant in both instances when it comes to music — people don't know what they like, they like what they know.

High-speed stairway to heaven
If you are going to embrace delivering digital music as a profitable service venture, you must appeal to the familiar. Pick a popular format and then stick with it — rather than expecting big bucks to come rolling in from offering your customers the latest stylings of Atomic Benji and the Cur Dogs.

In addition to walking familiar territory, don't build your online music business around narrowband Internet access. No music fan anywhere will wait 30 minutes to download a new release or artist's hit single.

Partnership opportunities for access providers and fee-based digital music services should be eagerly sought out as a match made in heaven. It's no longer a matter of allowing a bandwidth-hog to offload the cost of transport on service providers. Digital music can bring your Internet service traffic and customers, as well as pay for the digital ride at the same time.

Simple minds want to know
That is, digital music services could enhance your Internet business, as long as you don't confuse consumer's with technology. It doesn't matter if you have the coolest perceptual mapping technology on the planet. If you can't make users understand how your service simplifies their lives or enriches their daily existence, then you can't sell them anything.

Try super-serving the consumer rather than dictating to them. Don't tell them what they want and desire, let them tell you want they need. A marketing professor at Vanderbilt University once said that companies are either marketing or manufacturing companies.

It's time for the entertainment industry and service providers to think like marketing firms and give music lovers what they want — access to their favorite tunes.

They might be giants
It's a relatively simple concept — if you can't figure out a way to sell more products and services, then your business model will be short lived. Build an audience for something regardless of the new forms of distribution that are developed. Somebody in the marketplace still has to create a demand for the product. Make your pitch to what your audience wants — the demand is there to drive your business.

Finally, try being flexible. As the music buying audience moves online, different sales models will succeed while others fail. Make sure your services are on the growth side of evolution. Be prepared to follow the ebb and flow with technological advances and consumption rates as they change.

When I grow up I'll be stable
We've all learned a great deal about the allure of music — what it can do, and what its failed to do.

The greatest challenges for the future of digital media will be to find investors to support the next wave of financing and partners that can pioneer new delivery methods.

The reign of raiders and squatters is coming to a close. Now, it's time now for settlers. We've had enough "Digital Donner Parties." What we need now are some mutual success stories that highlight the strength and perseverance of survivors.

— End

   

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	[May 11, 2000]	Napster, mp3.com Down, But Not Out
	[Mar. 13, 2000]	The Napster Nightmare