Amazon/Pepsi DRM-Free Music Give Away Shows Yet Another Business Model For Free Music
from the for-everyone-but-Doug-Morris-of-course dept
A second, perhaps more important point, is that this once again shows that there clearly are business models surrounding "free" music. One of the points that we've tried to make when people claim that there's simply no incentive for anyone to create music if the customer is getting it free is that there's always going to be incentive for someone to pay for the music in some form or another. In this case, it's Amazon and Pepsi who are paying for the music itself ($0.40/track) recognizing that giving away that music for free helps both of them promote their own businesses. In other words, the music is acting as a resource to make their own business models more valuable. I think I've heard that idea mentioned before somewhere. Of course, that doesn't mean the record labels have figured this out. And, it's especially not surprising that Doug Morris has refused to let Universal Music go along with this, as he's already made clear that he doesn't believe in the concept of promotional goods, no matter how much damage it might actually be doing to musicians under the Universal Music umbrella.