Grabbed from The Guardian
Ten years after piracy first began to ravage the music industry, Britain’s two biggest record labels will finally try to play their part in stopping it, by making new singles available for sale on the day they first hit the airwaves.
Now this, is a good thing.
The further I’ve read into the technicalities of retailing digital media the more sympathetic I’ve become to the difficulties of digital retail. This softening of my opinion has primarily come via reading a healthy dose of intellectual property law and the various EULAs attached to services like iTunes, Steam and Amazon’s digital arm, those things none of us read but sign our souls away to, quite literally in some cases. I’ll post something regarding my adventures in EULAland in the near future; for now we’ll stick to the recent ‘Instant Pop’ announcement.
As much as I have softened in some regards, there are still areas where I’m fairly critical regarding industry practice. Digital retail at first seems to be about manufacturing scarcity in an inherently bountiful product, something that is profoundly difficult. However rather than apply old scarcity economics to digital media, the successful retailers have realised that it is not the product that gains them the custom, but the service surrounding it. The latest pop hit is the latest pop hit, whether you buy it from Amazon, iTunes or pull it down off of some P2P network. What differs is the process surrounding that acquisition. P2P is a pretty good service if you ignore the legality issue; contrary to industry opinion the files are of high quality, speeds are solid and if you are competent enough to operate some P2P client you’ll probably be street wise enough to not get a trojan of some sort.
With a service like iTunes however, because of their nice walled little empire they have something that P2P doesn’t; that nice little button, default on all iPods and iPhones that says ‘iTunes Store’. As long as you’ve got connectivity you can hit that button, search for a track and purchase within about 30 seconds. Then it’s there ready for you to own it at the moment you decided you wanted to own it. Put this hand in hand with radio and you’ve got a brilliant system; song comes on the radio, listener hears it, likes it, wants it. Listener goes to device in pocket and a few taps later they have it. The price is higher than P2P, but P2P couldn’t give it to them right then and there. The customer paid to have the song NOW.
People are walking around with miniature record shops in their pocket all day, at any moment they have the potential to purchase a small something that takes their fancy or even go on a media bender when looking to kill some time. Having a gap between radio promotion and single release, to deny the individual the option to purchase it at that moment when they are primed to be consumer, to tell them to wait and buy it in a few weeks, a few days, even a few hours, is a strategy that will lose you that customer. They’ve had the marketing plugged straight into them, they’ve got the shop out of their pocket and are ready to go, but due to a perception that you can still maintain media scarcity, there’s no single in the shop and the customer will look elsewhere because they know they can get it somehow, it’ll just take a bit more work.
This instant pop strategy is a good one, it plays to new behaviours of consumption and takes advantage of the fact that a grand majority of people are hooked up to media retail wherever and whenever. It won’t be a panacea for piracy, there’s more factors in people’s decisions to pirate than simply speed and convenience, sometimes p2p offer a service or a product that the legit spaces don’t. However for those people who previously would have taken the costlier but quicker option if only they had one, this move will bring them back in to the shop.
Props to @tegularius00 for sending me the article.