typodupeerror

During the discussion of Cringely Proposes a Music Sharing Alternative I came across Brad's idea

Here is my take on it:

Consider this, you buy the song when you hit play for \$1.05. When the song stops, the company buys back the song for \$1. Company just made \$0.05. You just got billed for \$0.05. You no longer own the songs, company can sell it to the next member.

Let's assume some numbers:

• 100K members.
• 2M songs.
• Max songs played at the same time: ~100K (high usage).
• Avg songs played at the same time: ~10K (daily avg).
• Favorite song copies needed to be owned: ~1K
• Avg. number of copies per song needed to be owned: 5 (maybe lower).

Some deductions:

• 2M * 5 songs = 10M ~ 1M CDs ~ \$20M inital layout.
• 10K songs played constaly for \$0.05 per song. A song is 5 min long. That is 10K * \$0.05 = \$500 every 5 mins = \$6K per hour = \$144K per day.
Ergo profitable in 139 days.
• You do not own any songs, but you can play any at any time for 5c per song.
• If you play music 15 hours a day 30 days a month, then with 5c per 5min song you would end up paying \$100/mo. This however means CONSTANT MUSIC TO YOUR EARS FOR ALL YOUR WAKING HOURS!

If lowering sale price to \$1.01 per song:

• Comany makes to 1c per song, and still it is profitable in a year and a half!
• UNLIMITED music cost you \$20(!!) per month.

Enhancements:

• As per Mr.Sharpy (472377) suggestion 20% of income can be returned to artists. My idea would be 10% to the song's artist (to reward popular artist for their hard work) and 10% toward a music artis fund (to support innovation and up-coming artists)

• If you burn it to cd, you brake the law.
• Streaming is the only way you can access
• Only works with instant online connection.
• Fad songs lose money, as you need to own more copies for inital interest, after which there will be no more interest.
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