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Mossberg: Full of Complaints About Subscriptions

Walt Mossberg's latest WSJ column compares music subscription services with Apple's iTMS, and ends up dissing the subscriptions on many counts. Mossberg recites the tired litany of complaints: renting isn't as good as owning; stop the service and you lose your music; To Go tracks don't play in iPods. He misses the point in two respects.

First, subscription plans are not all about the To Go element; primarily they are about owning a celestial jukebox in your computer. (The catalogs are not celestial by a long shot, but that's the principle.) Portability was added to compete with iTMS, and I personally favor the economics of subscription portability to a-la-carte buying, but Mossberg seems to think subscription services were recently created as an alternative to iTMS. In fact, Rhapsody and Napster (previously Pressplay) long predate the iTMS, and gained loyal followings based on their unlimited interactive streaming. That remains their primary purpose and main selling point.

Second, Mossberg is not visioning futuristically. (Granted, that's not what he's paid to do.) The distinction between serving music locally and remotely is fading and will eventually be utterly insignificant. When that happens, the distinction between owning and "renting" will likewise fade to obscurity. One problem with the perception of portable subscription services is the term "music rental," which sounds unappealing to just about everyone. The concept of renting music is too foreign to be accepted by most consumers. Far better to position "owning" against "access." We access cable TV, for example, with an economic model much inferior to Rhapsody or Napster. (Not only does the access end if you miss your payments, but the content is tied to the freakin' wall.) Music access is really the future focal point, and if the economics of access remain pretty much the same ($10-15/month for Napster or Rhapsody; $5/month for Yahoo! Music Unlimited), the deal will continue to be better than the cable TV payments so many people take for granted.

Mossberg is right to criticize the incompatibility that afflicts digital music: Napster doesn't play in iPods and iTMS tracks don't easily play in every other device, but he's dead wrong to assign all blame on the subscription side. To the contrary, Apple has led the industry into its ferocious and value-destroying format war. And when Mossberg says this: "So rental users are stuck with inferior portable players that don't sell well and thus don't attract the huge number of accessories available for the iPod"— he is really being clueless. The iPod is popular, yes, but far from superior, and falling further behind in the features department every month. One reason there are so many accessories is that iPods lack so many standard features. Mossberg is supposed to see through popularity myths, not buy glibly into them.

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