MSN Music Files Won't Play On New Devices After August (Information Week)
MS: As of August 31st, we will no longer be able to support the retrieval of license keys for the songs you purchased from MSN Music or the authorization of additional computers," Microsoft said in an e-mail that was sent Tuesday to former MSN Music customers.
That means consumers who purchased songs from MSN Music and who want to port their library to a new device -- in case of, say, a hardware failure or desire to upgrade -- won't be able to do so after the end of August.
Given the life of today's computer hardware and mobile devices, Microsoft's decision effectively places an expiration date of about three to five years on song libraries that MSN Music customers thought they had purchased for life.
How Apple Is Preparing for an iPod Slump (NY Times)
MS: Still, the number of iPods sold in the quarter grew only 1 percent from the same quarter a year ago. And sales of the low-end iPod Shuffle have been falling sharply. In response, Apple lowered the price of the 1-gigabyte shuffle from $79 to $49, helping to stanch the decline. Apple executives speaking on a conference call Wednesday afternoon gave few details, as is their custom.
For some companies, a mature market and downward pressure on prices could lead to a nasty death spiral. But Apple has used its amazing six-year run with the iPod to nurture enough new business lines that it will be able to withstand a collapse in the MP3-player market as well as can be imagined.
From Bricks and Mortar to Digital Music Master (Business Week)
MS: Music industry experts say small shops have some advantages over chains. Used CDs and vinyl records have higher markups and attract collectors, giving independent stores an edge, says Aram Sinnreich, co-founder of Radar Research, a Los Angeles media and technology consultant. "These small retailers are the kinds of places that build musical communities in ways that Wal-Mart (WMT) and Best Buy (BBY) and even Tower Records never really could," Sinnreich says. Tower went bankrupt in 2006 and closed its U.S. retail stores, including one just a block from Other Music.
Madell says he expected the chains to go under before independent stores. Casual customers more interested in singles than albums can download their fix more easily than the fanatics who haunt places like Other Music. And the Internet exposes more fans to artists beyond those played on the radio or MTV. "I think the market for interesting, underground, cutting-edge music is bigger than it ever was," Madell says. "How to capitalize on that market and make it a real business is another question."
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