Comments on: 7digital’s Warner deal for DRM-free tracks confirms it as the UK music startup to beat http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/ Tracking the UK's mobile and web start-up ecosystem. Mon, 08 Sep 2008 17:23:06 +0000 http://wordpress.org/?v=2.5.1 By: Mike Butcher http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118115 Mike Butcher Thu, 06 Mar 2008 09:43:55 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118115 Surely it's never going to be a core competency for a music label to be its own retailer? It would seem to be outside their scope, hence the requirement for partners. Well, whatever, I'm sure I'm wrong. Surely it’s never going to be a core competency for a music label to be its own retailer? It would seem to be outside their scope, hence the requirement for partners. Well, whatever, I’m sure I’m wrong.

]]> By: ben mackenzie http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118058 ben mackenzie Thu, 06 Mar 2008 05:07:33 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118058 hi mike, i must say i don't quite understand your comments, but i suspect we may be misunderstanding each other. there is definitely a role for a middleman in a&r - for example, discovering new acts, helping with marketing & promotion, etc. however, there isn't much of a role (or margin) in the retail music business. i should think there are sufficiently numerous examples of this (hmv, tower records, msn music, yahoo! music, etc.) to make this clear. that's why the labels don't need 7digital, or any other retail music site for that matter. perhaps you might care to respond to my points, instead of resorting to insults? hi mike, i must say i don’t quite understand your comments, but i suspect we may be misunderstanding each other.

there is definitely a role for a middleman in a&r - for example, discovering new acts, helping with marketing & promotion, etc.

however, there isn’t much of a role (or margin) in the retail music business. i should think there are sufficiently numerous examples of this (hmv, tower records, msn music, yahoo! music, etc.) to make this clear.

that’s why the labels don’t need 7digital, or any other retail music site for that matter.

perhaps you might care to respond to my points, instead of resorting to insults?

]]> By: Mike Butcher http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118022 Mike Butcher Thu, 06 Mar 2008 00:52:01 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-118022 ben mackenzie - Nice thinking. It's a shame you relegate 7digital to your 'boring old fart' strategy. Perhaps it fits with your persona? But maybe you're right. As with Stiff record, there may always be a role for a middleman. ben mackenzie - Nice thinking. It’s a shame you relegate 7digital to your ‘boring old fart’ strategy. Perhaps it fits with your persona? But maybe you’re right. As with Stiff record, there may always be a role for a middleman.

]]> By: ben mackenzie http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117978 ben mackenzie Wed, 05 Mar 2008 22:07:35 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117978 also, i'd wager that the "exclusive" deal with warner is but a temporary one. selling music downloads is a low-margin, commodity business and 7digital will need to either: a) seek to own the space entirely (like itunes, which appears to have an insurmountable head start), or b) differentiate its services in a way that is meaningful to consumers. sadly, the world doesn't need 7digital (or itunes either, for that matter). the labels should simply sell music downloads themselves and cut out the middlemen. also, i’d wager that the “exclusive” deal with warner is but a temporary one.

selling music downloads is a low-margin, commodity business and 7digital will need to either:

a) seek to own the space entirely (like itunes, which appears to have an insurmountable head start), or

b) differentiate its services in a way that is meaningful to consumers.

sadly, the world doesn’t need 7digital (or itunes either, for that matter). the labels should simply sell music downloads themselves and cut out the middlemen.

]]> By: DRM Free Audio http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117941 DRM Free Audio Wed, 05 Mar 2008 20:18:17 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117941 There are a number of other sources that people from all across the world can get drm free music. Is exclusive license the best idea any more? When people can't buy it legally from their favorite store they will just pirate it... There are a number of other sources that people from all across the world can get drm free music. Is exclusive license the best idea any more? When people can’t buy it legally from their favorite store they will just pirate it…

]]> By: ben mackenzie http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117906 ben mackenzie Wed, 05 Mar 2008 18:56:05 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117906 i'm afraid i must agree with william's comments above, as i believe you're getting quite worked up over a relatively small matter. the music download business - at best - provides ~10% margins after marketing, content management and fulfillment expenses. and 7digital is a distant player after itunes. i've had a chat with ben and he's a wonderful chap. but any smart business person knows that the music business is a terrible business to be in... i’m afraid i must agree with william’s comments above, as i believe you’re getting quite worked up over a relatively small matter.

the music download business - at best - provides ~10% margins after marketing, content management and fulfillment expenses. and 7digital is a distant player after itunes.

i’ve had a chat with ben and he’s a wonderful chap. but any smart business person knows that the music business is a terrible business to be in…

]]> By: Mike Butcher http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117802 Mike Butcher Wed, 05 Mar 2008 16:10:16 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117802 90's dotcommer - I gather it's spam...? What was attached, a virus or something else? Maybe don't open it! 90’s dotcommer - I gather it’s spam…? What was attached, a virus or something else? Maybe don’t open it!

]]> By: 90's dotcommer http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117792 90's dotcommer Wed, 05 Mar 2008 15:58:22 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117792 I just received this email through from ECADEMY: Dear members, clients and guests of our portal, Over the last few years our portal has helped you to organize your business, find new partners and increase sales. However, all good things end. Many of you know that we have experienced legal problems over the last year. Our competitors from other social networks are trying to take over our client base. Our website has been hacked and our database was stolen. After that we were taken to court because of identity theft. Unfortunately, legal expenses and unfavorable court verdict with following closure of our bank accounts will lead to closure of our website. All paying members will receive refund starting from March 14th. Please check attached file for legal information in regards to your account. Best regards, The Ecademy Team Ecademy - The Social Network for Business People Company Registration:3651083 VAT:718 0377 36 I just received this email through from ECADEMY:

Dear members, clients and guests of our portal,

Over the last few years our portal has helped you to organize your business, find new partners and increase sales.
However, all good things end. Many of you know that we have experienced legal problems over the last year. Our competitors from other social networks are trying to take over our client base.
Our website has been hacked and our database was stolen. After that we were taken to court because of identity theft.
Unfortunately, legal expenses and unfavorable court verdict with following closure of our bank accounts will lead to closure of our website. All paying members will receive refund starting from March 14th.
Please check attached file for legal information in regards to your account.

Best regards,
The Ecademy Team

Ecademy - The Social Network for Business People

Company Registration:3651083 VAT:718 0377 36

]]> By: James http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117729 James Wed, 05 Mar 2008 11:55:31 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117729 7digital have not received funding from any record labels, major or otherwise. 7digital's backers are Sutton Place and Balderton Capital. Whilst it's true that you can burn DRM protected music to CD and rip it back sans-DRM it's not a great experience, and the quality of the resultant file will suffer. 7digital have not received funding from any record labels, major or otherwise. 7digital’s backers are Sutton Place and Balderton Capital.

Whilst it’s true that you can burn DRM protected music to CD and rip it back sans-DRM it’s not a great experience, and the quality of the resultant file will suffer.

]]> By: william http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117728 william Wed, 05 Mar 2008 11:36:42 +0000 http://uk.techcrunch.com/2008/03/05/7digitals-warner-deal-for-drm-free-tracks-confirms-it-as-the-uk-music-startup-to-beat/#comment-117728 You must be kidding.....Where is the 7 digital itunes ? Where is the 7 digital; ipod, iphone, mac book, etc ? Does it matter that the songs dont have drm ? The songs I buy from itunes dont have drm.....I can burn them to a cd and do with them what I please. The DRM issues in this instance is an illusion.....just as the 188% increase is..Whats the real number in sales revenue ? How do this compare to itunes or other online sites that sell drm or drm free music..... Correct me if I m wrong....but I think that 7 Digital has also received funding from one of the major record companies.....Is this a good thing ? Why should we cheer for the labels to fight back against Apple ? Because Steve Jobs has found a way to turn the tables on them ? Because they were no so smart and wanted to keep forcing us to buy over priced music so that we could have the one song that we wanted..... You must be kidding…..Where is the 7 digital itunes ? Where is the 7 digital; ipod, iphone, mac book, etc ?

Does it matter that the songs dont have drm ?
The songs I buy from itunes dont have drm…..I can burn them to a cd and do with them what I please.

The DRM issues in this instance is an illusion…..just as the 188% increase is..Whats the real number in sales revenue ? How do this compare to itunes or other online sites that sell drm or drm free music…..

Correct me if I m wrong….but I think that 7 Digital has also received funding from one of the major record companies…..Is this a good thing ?

Why should we cheer for the labels to fight back against Apple ? Because Steve Jobs has found a way to turn the tables on them ? Because they were no so smart and wanted to keep forcing us to buy over priced music so that we could have the one song that we wanted…..

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