Ran into this little gem.
CEO of MOG said at the end of this video that the "
holy grail" of music subscription is getting service like Mog, Spotify, Rdio, Rhapsody bundled with either internet cable or phone carries.
And he stated that the music labels are wiling to go as low as
$2-3 per month per subscribers. The music labels are demanding $10 a month right now for the like of Spotify/Mog/Rhapsody. But with scale (300 million people), they are willing to go as low as
$2-3.
I wrote and predicted $4-5 but damn....$2-3 is a steal.
Video of that is here:
http://www.billboard.biz/bbbiz/indus...05519352.story
Let's assume it's $3 a month. 300 million cell phone users in the USA
$3 x 12 months x 300 million subscribers = $10.8 billion in revenue.
USA recorded music for 2010 was something like $7.3 billion (retail value).
Which mean an increase of $3.5 billion for the music industry.
If the music industry comes to T-Mobile or Sprint today and say, we can let your subscribers download unlimited music for $3 a month. Deal or no deal?
Let's hope Muve Music success for Cricket will force the bigger carriers to adopt the same approach. Muve Music is approaching 300,000 subscribers. Not bad for a regional carrier with about 5 million users.
