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max_wedge Posts: > 500

YouTube to take on iTunes and change business model of music

Quote:Apple Computer's iTunes music download site has been credited with doing much to eliminate the free file sharing music piracy trade. However, social networking site YouTube threatens to undermine everything that Apple has worked for by introducing a new free advertising funded business model.

With an estimated 100 million page views a day (hard to believe we know), YouTube is not a force to be trifled with. What is now offering to do is put on its site every music video that has ever been made. What's more the videos would be free to both view and download to keep in perpetuity. And needless to say, you would not need an iPod to view and listen to them.

The whole thing, every single music video, would be funded by advertising which, as Google has demonstrated, is destined to become the only viable internet revenue model worth considering.

YouTube is reportedly in talks with Warner Music and EMI about providing a free advertsing funded download service.

All of this is bad news for Apple which currently controls the music download market. Apple currently controls the music download market, charging US$0.99c a track, which does not make music companies happy but hits a sweet spot with consumers.

However, the catch is that consumers who use iTunes are locked into the iPod as a portable music player, although they can burn the tracks to CD or listen to the tracks from their computers.

YouTube threatens to undercut all of this by making music tracks legally free for the first time in history, funded by advertising, and available for download to any portable music player.

If YouTube is able to pull this off, then it could change the business model of music sales forever.


I'll happily view adds in return for free music. We've been doing it with TV for 50 years, why not music?

Bring it on I say!!

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Posted: 2006-09-14 00:38:12
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Sammy_boy Posts: > 500

Sounds pretty good to me too! Unless you have to sit through 10 mins of ads before you get to your download!

I've heard the odd thing on the news recently too how TV advertising isn't working anywhere near as good as it used to, I guess people either switch off to them, have become desensitised to them or simply just go and make a cuppa every time they come on. This could be a new way for advertisers to make money, be the new tv advert?
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Posted: 2006-09-14 01:41:59
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max_wedge Posts: > 500

the adds might hopefully just be banner adds, not actually in line with the video but around it.
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Posted: 2006-09-15 08:43:30
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