Wikimania Takes Over Online Shopping? >>
<< Prescient Judge Realizes Employee Net Surfing...
 tdicon 

Overhype

by Carlo Longino

Mon, Apr 24th 2006 12:50pm





Skype Waiting To Pounce On iTunes

from the okay,-but-why? dept

If it was inferred in the post last week about Skype's revenue growth that we doubted Skype's prospects, we take it all back. Skype's plans have made believers out of us, as the eBay unit has now signed a deal with EMI Music Publishing that paves the way for it to sell music downloads and ringtones on its web site. While Skype was already in the lucrative VoIP ringtone business, selling music downloads will help it stand out from... well, nobody, really, since anybody and everybody is doing it these days. The logic here is really hard to see. Skype isn't a service with which consumers associate buying music, and it's unclear how it could profitably sell music and compete with iTunes, the 800-pound gorilla in the space. Perhaps they'll follow the iTunes model and use the tracks as a loss leader to try and attract people to Skype -- but that would be even more questionable, since it doesn't seem like Skype does a great job of turning downloaders into paying customers. Update: It sounds like maybe Skype isn't planning to sell full tracks, after all, saying the deal is just for ringtones.

36 Comments | Leave a Comment

If you liked this post, you may also be interested in...

Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Anonymous Coward, Apr 24th, 2006 @ 3:07pm

    skype sucks

     

    [ reply to this | link to this | view in thread ]

  2.  
    identicon
    Ward, Apr 24th, 2006 @ 3:17pm

    What I dont get is why people use iTunes, and not allofmp3.com. You pick exactly how you want it encoded and basically how much you pay! It usually comes out to about 10 cents a song compaired to iTunes ripoff 99 cents a song. So.... 1 song.. or 10? Better quality too!? AMAZING!

    F**K iTunes.

     

    [ reply to this | link to this | view in thread ]

  3.  
    identicon
    Elf Ink, Apr 24th, 2006 @ 3:20pm

    Sounds like...

    Skype... hype... coincidence?

     

    [ reply to this | link to this | view in thread ]

  4.  
    identicon
    David, Apr 24th, 2006 @ 3:35pm

    Skype does make money

    uuh, I just spent $10 for more Skype credit on my account literally about two minutes ago, and then I read this that Skype does not make any money. A lot of people are using Skype these days. I canceled two Vonage accounts and $50 a month I was paying to VOnage and only use Skype now.

     

    [ reply to this | link to this | view in thread ]

  5.  
    identicon
    Anonymous Coward, Apr 24th, 2006 @ 3:36pm

    Re:

    allofmp3.com is of debated legality

     

    [ reply to this | link to this | view in thread ]

  6.  
    identicon
    john cooper, Apr 24th, 2006 @ 3:52pm

    Skype is the best

    I travel all over the world. Skype is the best thing since IM. Almost free calling, cannot beat it

     

    [ reply to this | link to this | view in thread ]

  7.  
    identicon
    Antimatter, Apr 24th, 2006 @ 4:00pm

    Re:

    Well, I'd say the main reason is that first of all, the artists won't see a penny from your purchase, and second it's kind of a legal gray area. That said, I won't pay money for anything with DRM on it (both out of principle and because with the inconvenience and bad quality it's not even a good value) so I end up using it because it's a) convenient and b) less illegal :)

    But yeah, in general I agree.

     

    [ reply to this | link to this | view in thread ]

  8.  
    identicon
    Maddy, Apr 24th, 2006 @ 4:16pm

    Re: Re:

    If it was, then what do you think RIAA is waiting for?

     

    [ reply to this | link to this | view in thread ]

  9.  
    identicon
    UCFmethod, Apr 24th, 2006 @ 5:11pm

    allofmp3 sucks

    I am not sending 1 penny to a russian website just because they sell music cheaper than iTunes. Plus, I know how to find music without the aid of those gay P2P programs. Never needed to use the, never will. Long live PAR2

     

    [ reply to this | link to this | view in thread ]

  10.  
    identicon
    UCFmethod, Apr 24th, 2006 @ 5:11pm

    allofmp3 sucks

    I am not sending 1 penny to a russian website just because they sell music cheaper than iTunes. Plus, I know how to find music without the aid of those gay P2P programs. Never needed to use the, never will. Long live PAR2

     

    [ reply to this | link to this | view in thread ]

  11.  
    identicon
    UCFmethod, Apr 24th, 2006 @ 5:12pm

    ALLOFMP3 sucks

    I am not sending 1 penny to a russian website just because they sell music cheaper than iTunes. Plus, I know how to find music without the aid of those gay P2P programs. Never needed to use the, never will. Long live PAR2

     

    [ reply to this | link to this | view in thread ]

  12.  
    identicon
    tony, Apr 24th, 2006 @ 5:47pm

    CD's need to be better priced

    I also hate DRM, and I think I want to go back to buying CD's, but they have to be reasonably priced. I won't hold my breathe though.

    As for the russian website, I have used it in the past, out of curiousity, but I no longer participate - the artists need to make a living, and this site is stealing from them. It may be legal in russia, but certainly not in the rest of the world. Ethically speaking, it is not in any part of the world.

     

    [ reply to this | link to this | view in thread ]

  13.  
    identicon
    Kit, Apr 24th, 2006 @ 5:49pm

    ugh... grammar 101

    Inferred? C'mon.

     

    [ reply to this | link to this | view in thread ]

  14.  
    identicon
    Ward, Apr 24th, 2006 @ 5:54pm

    Well first of all, thans for posting 3 times to assure we read what is ignorant. There is no P2P program related to AllOfMP3. It is Russian- and thats why RIAA cant touch them. I pay for it so my conscious is clear. Either way f**k iTunes and the RIAA. If the band is good they will go on tour and I will buy a ticket to see them, giving them as close-to-directly my money as I can.

    My hate for iTunes stems from the fact it has the lower case "i" in front of it. iBook, iMac, iPod- I hate them all. Its an OSist thing. Long live Linux!

     

    [ reply to this | link to this | view in thread ]

  15.  
    identicon
    Bazwel, Apr 24th, 2006 @ 6:01pm

    Re:

    'My hate for iTunes stems from the fact it has the lower case "i" in front of it. iBook, iMac, iPod- I hate them all. Its an OSist thing. Long live Linux!'

    Wow Ward, thats a good reason to hate something. No wonder the Jews and the Arabs can't sort things out! :-)

    Typed on my Ibook.

     

    [ reply to this | link to this | view in thread ]

  16.  
    identicon
    Gary Cohen, Apr 24th, 2006 @ 6:21pm

    Re:

    You are so right - you don't get it

     

    [ reply to this | link to this | view in thread ]

  17.  
    identicon
    jean, Apr 24th, 2006 @ 6:30pm

    Re: Skype is the best

    Skpe is the best - in most parts of the world. We've been using it for nearly a year to talk to the US and UK but over the past month or so, we've had problems and we've heard that China is refusing to issue a license to Skpe and is cracking down on voLP. So now skype only seems to work well on weekends when I guess, the employees of China Telecom are off work.

     

    [ reply to this | link to this | view in thread ]

  18.  
    identicon
    Pipes, Apr 24th, 2006 @ 6:52pm

    What are we talking about?

    Reader comments are so humorous to read due to how they always develop into bickering between the readers about something completely unrelated to the article 'under discussion'. These readers selfishly take control of the subject and manipulate it to push their own agenda, thereby, discrediting the discussion forum. The laugh is nice, but wouldn't it be more beneficial if we toned-back this user-generated garbage in favor of something to help others shape an opinion about the original topic? People, please!

     

    [ reply to this | link to this | view in thread ]

  19.  
    identicon
    Michael, Apr 24th, 2006 @ 8:52pm

    iTunes and Skype rule!

    Skype is a really great service, and iTunes itself as an MP3 store and more and a player is way better than anything out there... but it is very doubtful that Skype will ever make hte big Apple shake, with or without it's growing marketshare on VoIP.

     

    [ reply to this | link to this | view in thread ]

  20.  
    identicon
    Anonymous Coward, Apr 25th, 2006 @ 5:19am

    Because its practically illegal???

    Instead of using profanity - you might start using your brains.
    Allofmp3 is based in Russia - where most US lawas dont apply - even certain extreme types of ponography is legal there. Read the legalese (pasted below) in particuar this:

    "The user bears sole responsibility for any use and distribution of all materials received from AllOFMP3.com. This responsibility is dependent on the national legislation in each user's country of residence. The Administration of AllOFMP3.com does not possess information on the laws of each particular country and is not responsible for the actions of foreign users"

    This means that if possesing the tracks in your country (say US) is illegal, it doe snot matter that you downloaded it from allofmp3 - they are not going to help you if you are ordered to pay a couple of hundred thousand dollar fines - if I were you, I would use my brains and not publically go about parading the fact that you use allofmp3 if you live in the US.

    AM

    Read on...

    The availability over the Internet of the ALLOFMP3.com materials is authorized by the license # LS-3М-05-03 of the Russian Multimedia and Internet Society (ROMS) and license # 006/3M-05 of the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR). In accordance to the licenses' terms MediaServices pays license fees for all materials downloaded from the site subject to the Law of the Russian Federation "On Copyright and Related Rights". All these materials are solely for personal use. Any further distribution, resale or broadcasting are prohibited.

    The works available from ALLOFMP3.com are protected by the Law of the Russian Federation "On Copyright and Related Rights" and are for personal use of a buyer. Commercial use of such material is prohibited. Recording, copying, distribution on any media is possible only upon special consent of a Rightholder.

    The user bears sole responsibility for any use and distribution of all materials received from AllOFMP3.com. This responsibility is dependent on the national legislation in each user's country of residence. The Administration of AllOFMP3.com does not possess information on the laws of each particular country and is not responsible for the actions of foreign users

     

    [ reply to this | link to this | view in thread ]

  21.  
    identicon
    Nephilim2038, Apr 25th, 2006 @ 8:52am

    Re: alltunes.com

    Installed it yesterday on windows xp with all service packs installed.

    It fails to run, entering a debug mode looking for borland libraries.

    Of course, the artists might actually like the royalties they receive from iTunes, as well. And since I buy rather than steal just because I want at least a few cents of every purchase to go to the artists, I'd rather use a legitimate service.

    I'll stick with iTunes.

     

    [ reply to this | link to this | view in thread ]

  22.  
    identicon
    Brian, Apr 25th, 2006 @ 1:50pm

    support itunes = support DRM

    Why use itunes, your music is limited to few devicescomputers. Sure you can burn to cd convert to .wma and copy back, but why support that. Let us download the songs in a format the we want and let the consumer be responsible for not braking copyright laws. They need to to trust their paying customers, go after those who steal and share.

     

    [ reply to this | link to this | view in thread ]

  23.  
    identicon
    jdragon, Apr 25th, 2006 @ 1:53pm

    skype is wasting their time

    good luck finding the resources to compete against iTunes.

     

    [ reply to this | link to this | view in thread ]

  24.  
    identicon
    Brian, Apr 25th, 2006 @ 2:00pm

    sell music on ebay

    Does anyone know if it is legal to sell your old music on ebay in digital form. If it is, then buying music on itunes would really limit your ability to do that, if its legal. I don't see why it wouldn't be, if you payed for it, you own it, then you can sell it.

     

    [ reply to this | link to this | view in thread ]

  25.  
    identicon
    Anonymous Coward, Apr 25th, 2006 @ 2:29pm

    Skype, allofmp3.com

    1) Skype is a cool thing. If they can reach the masses and have a successful business model selling music (either as computer/cd useable or as ringtones), great. More power to them.

    2) allofmp3.com does not pay anything to the artists, their heirs, their families, their anything... Period. Just because their website makes it available to you and you pay money for it - doesn't make it right, legal, or justified. Without debating Intellectual Property, property rights, copyrights, or other legal aspects, look at it this way: Someone in Russia is taking money for a "product" that they don't have ANY permission to resell.

     

    [ reply to this | link to this | view in thread ]

  26.  
    identicon
    blahblah, Apr 25th, 2006 @ 2:30pm

    allofmp3.com DOES support artists...

    just not all the other companies that usually take the majority of the profits off the sale of an album. Thats why they can offer the songs for so little: the artist sees the same royalty he would see from a sale in the US but the record companies don't get anything. Do a little research and you'll see that allofmp3.com is more popular in europe than iTunes for obvious reasons... cheaper, no DRM, and the government doesn't pass stupid laws with a nod and a wink to the record companies.

     

    [ reply to this | link to this | view in thread ]

  27.  
    identicon
    RIAA, Apr 25th, 2006 @ 2:34pm

    Re: sell music on ebay

    No its not legal. Why? Because we so. Now stop it before we sue you.

     

    [ reply to this | link to this | view in thread ]

  28.  
    identicon
    Anonymous Coward, Apr 25th, 2006 @ 2:35pm

    Re: allofmp3.com DOES support artists...

    Your statement is not true. Period. I know from personal experience. I get no checks, nor do my musician friends whose music is sold there.

    If iTunes pays out .70$ per tune, and the artist sees 25-90% of the revenues, how is zero cents from allofmp3.com getting more money to the artists?

    Don't spread lies to justify using allofmp3.com

     

    [ reply to this | link to this | view in thread ]

  29.  
    identicon
    Anonymous Coward, Apr 25th, 2006 @ 2:57pm

    And we are supposed to believe you are actually a real band. Sure, in your parents garage. Keep living the dream!

     

    [ reply to this | link to this | view in thread ]

  30.  
    identicon
    blahblah, Apr 25th, 2006 @ 3:08pm

    rebuttal...

    all the research i've found on the net has stated that according to russian law, allofmp3.com is required to pay royalties to the artists for each download. The record companies are payed a yearly flat fee and do not get a portion of royalties. Previously, I stated the record companies do not get paid at all which was wrong... according to various sources on the net. now, if you're not recieving your royalties then allofmp3.com is breaking russian law and you have a case and should sue... if you have any evidence or references that state the opposite of what I've found, I would like to read them so let me know

     

    [ reply to this | link to this | view in thread ]

  31.  
    identicon
    AnarChoas, Apr 25th, 2006 @ 3:11pm

    Re: sell music on ebay

    Better read the fine print bud on the inside of the jacket...

    "duplication in whole or in part... not for resale... without prior consent of the artists and their advocates..."

    yodda yodda -
    granted, not verbatim, but you get the gist of it

    in Canada I seed as much as I leech =P

    Hey RIAA, what did you say about me downloading music to replace my old tapes and CD's that no longer work??

     

    [ reply to this | link to this | view in thread ]

  32.  
    identicon
    CB, Apr 25th, 2006 @ 3:28pm

    BULL ITUNES

    I tunes give about 3 to 7 cents on the dollar to ARTIST. I tunes is stealing from us.. ITS hIGhWaY robbery

     

    [ reply to this | link to this | view in thread ]

  33.  
    identicon
    Boris Jacobsen, Apr 25th, 2006 @ 7:34pm

    less than 3 to 7 cents, actually

    My ex-band's management has had lawyers write to itunes. itunes has an agreement with my ex-band's ex-record label, who ripped us off completely. itunes can 'accept no responsibility' for the fact that we're being ripped off and claims to have a 'bona fide' contract with our ex-record label.

    So we're screwed both ways.

    Fuck the lot of them. Buy from allofmp3.com.

    My ex-band's album is there too. And we've had a small amount of money from them via the PRS (Performing Right Society, a UK collection agency). Not as much as we should have had contractually, but a lot more than ZERO that itunes have paid us.

     

    [ reply to this | link to this | view in thread ]

  34.  
    identicon
    Emule, Jun 9th, 2006 @ 7:42am

    Re: allofmp3 sucks

    share your files!!!!

    files for free!!!!!

    p2p is the best and fuck the rest!!!!!

     

    [ reply to this | link to this | view in thread ]

  35.  
    identicon
    witluvurass, May 1st, 2007 @ 5:50pm

    Re:

    think about the artist they need money too...thats what i tunes does f**k allofmp3.com

     

    [ reply to this | link to this | view in thread ]

  36.  
    identicon
    Derek, Jul 21st, 2007 @ 10:50pm

    A better tomorrow

    I'm going to keep this short, but we are working on developing a new music service that should blow all of this "other crap" out of the water.

    To be honest, i am not an artist, but i have a lot of friends who are. Why should they get screwed around every corner? I would appreciate if all who read this head over to "freedomfortheartist.blogspot.com" to vote in our surveys and post your comments.... In about another month or two, well be going live with our new website.

     

    [ reply to this | link to this | view in thread ]


Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Save me a cookie
  • Note: A CRLF will be replaced by a break tag (<br>), all other allowable HTML will remain intact
  • Allowed HTML Tags: <b> <i> <a> <em> <br> <strong> <blockquote> <hr> <tt>
Wikimania Takes Over Online Shopping? >>
<< Prescient Judge Realizes Employee Net Surfing...
 tdicon 
Follow Techdirt
Flattr rss rss
A word from our Sponsors...
Sponsored Resource
Essential Reading
Techdirt Reading List
Techdirt Insider Chat

A word from our Sponsors...
Recent Stories

Wednesday

3:58am: Hollywood Studios Keep Saying Its Employees Must Get Paid, And Now May Be Forced To Pay Its Interns (17)
1:56am: Warning Letters Under UK's Three Strikes Plan Unlikely To Be Sent Out Before 2016 -- If Ever (12)

Tuesday

11:01pm: Public Outcry In Taiwan Kills Their Version Of SOPA (7)
8:02pm: WIPO: Informal Economy Innovates In The Absence Of Intellectual Monopolies (10)
5:00pm: DailyDirt: Augmented Vision (3)
3:50pm: States Attorneys General Want Special Exception To Blame Sites For Actions Of Users (66)
3:02pm: Google, Without Admitting It Gets FISA Orders, Files Lawsuit To Challenge FISA Gag Orders (28)
2:29pm: NYPD Commissioner Blasts NSA Secret Monitoring For Being Secret (25)
1:43pm: It's Come To This: Commentators Arguing That The Press Commits A Crime In Exposing NSA Surveillance (50)
1:00pm: US Chamber Of Commerce: Bollywood Is So Successful Without Strong Copyrights That It Will Fail Unless India Strengthens Its Copyrights (53)
More arrow
A word from our Sponsors...

Close

Email This