Month: June 2009

Friday Five: an open letter to eMusic

Blogger’s note: Today’s Friday Five has nothing to do with higher ed, but a lot to do with marketing, public relations and brand management.

Dear eMusic:

I’ve been a member of your subscription-based independent music service for five years now, and I’ve usually been pleased with your service and offerings — even when you bumped your prices that one time. More than that, though, I’ve come to appreciate what you stand for. (Or, maybe, what you once stood for.)

  1. You thumbed your nose at the mass music world of big labels and iTunes, offering music fans an alternative.
  2. While the RIAA bigs were pushing to limit mp3 usage by DRM (digital rights management) encoding, you stuck with your DRM-free philosophy. You sold the music, and didn’t interfere with your customers’ right to use the tunes as they wished.
  3. You offered decent, rare and eclectic music on the cheap. Very, very cheap.
  4. Unlike other pay-per-download services, you offered a menu of subscription plans, giving listeners options on number of downloads per month at different, very reasonable pricing.
  5. You built a brand as — in your words — “the internet’s corner music store.” You were a kind of virtual Empire Records that “offers a deeper, more personal alternative to mass market digital music retailers.”

You were punk, and then you got popular. You gained a big following — 400,000 members strong.

You built a brand out of sticking it to the man.

But now it’s sounding like you’re sticking it to us, your loyal customers.

Earlier this week, you announced you had struck a deal with one of the music giants, Sony, to add their back catalog to your service. I have mixed and conflicted feelings about that move. Yes, it’s cool to know that you’ll be carrying some of my all-time favorite artists — the Clash, Bruce Springsteen, Patti Smith and others (whose back catalog I happen to already own, thankyouverymuch) — but by letting Sony in, you’re on the way to squeezing the little guys out, and you’re losing that “corner music store” vibe that forms your core.

If this were the only thing you were changing about your service, I might be able to roll with it. But what really sticks in my craw is that because of this new deal, you’re changing your subscription and fee structure, effectively doubling the cost of the mp3s for your customers.

So, instead of 65 tunes a month for $14.99, I’ll now get 37 downloads for that same price, effective in July.

I can hear the iTunes subscribers now: “Get over it, tightwad. So you’ll be paying 41 cents a download instead of 23 cents. You’re still getting music cheap.”

The fact that eMusic has offered such a great deal as compared to iTunes — and will continue to do so, even with the price increase — isn’t the point.

The point is that a mainstream corporate entity has entered the game, and the price goes up.

Your CEO, Danny Stein, claims that “Independent labels and artists will continue to be eMusic’s core” and expresses his confidence that “with this enormous, ridiculous catalogue and our shared musical philosophy (listen to the good stuff, ignore the rest), it’ll be that much easier and more fun to find records, to get inspired, to get into some phase that you never expected.”

I hope that’s the case.

Still, as i think of all that’s transpired this week with eMusic, I keep thinking about these words from James Agee’s Let Us Now Praise Famous Men. They seem to ring truer than ever today.

Every fury on earth has been absorbed in time, as art, or as religion, or as authority in one form or another. The deadliest blow the enemy of the human soul can strike is to do fury honor. Swift, Blake, Beethoven, Christ, Joyce, Kafka, name me a one who has not been thus castrated. Official acceptance is the one unmistakable symptom that salvation is beaten again, and is the one surest sign of fatal misunderstanding, and is the kiss of Judas.

By entering the eMusic fold, is Sony actually “doing fury honor”? Or is it a brilliant marketing move that will capture some dissident iTunes shoppers who figure out they can get tunes from mainstream artists at a cheaper price from eMusic? Is the RIAA giant swallowing up the independent guy, or does the independent have the upper hand?

OK, so it’s only rock and roll. (Insert Rolling Stones quip here.)

Will i stick with your service, eMusic? Let’s see what July will bring, but yeah, I probably will. But I won’t much like it.

Cordially,
Andrew Careaga
eMusic member since 2004

* * * * *

This is a Friday Five, so here are the obligatory links, all about how eMusic’s PR and customer relations folks bungled this situation:

  1. One step forward, one big step back with the eMusic-Sony deal
  2. Did No One At eMusic Think About PR Impact Of Raising Prices At The Same Time Sony Signed?
  3. Ten years later eMusic.com crushes its brand values in one day
  4. eMusic faces PR challenge in the wake of Sony partnership, pricing announcements
  5. eMusic and Sony – It is getting worse

Chronicle: convenience, price will drive college choice in 2020

The world of higher education in 2020 will be shaped largely by convenience and economics, according to a new report from the research arm of The Chronicle of Higher Education.

The report, titled “The College of 2020: Students” and released by the publication’s Chronicle Research Services, notes that the rise of for-profit colleges and popularity of community colleges “presages a time when colleges will be marketing themselves more like retailers.” An executive summary (PDF) of the 50-page report is available for free.

According to a press release from the organization, the trends spell trouble for traditional higher ed.

The traditional model of college — four years away from home learning and growing into adulthood — will continue to wane. It will still have a place in higher education, but it will be a smaller piece of the overall picture.

Students’ convenience is the future, says the report. … More students will attend classes online, study part time, take courses from multiple universities, and jump in and out of colleges. The average student will be older, and will demand more options for taking courses to make it easier for them to do what they want when they want to do it. And they will make those demands for economic reasons, too. The full-time residential model of higher education is getting too expensive for a larger share of the American population. More and more students are looking for lower-cost alternatives to attending college. That trend will assuredly open doors for more inexpensive online options.

Of course, colleges and universities will have to adapt to meet these new demands. “The challenge,” the executive summary notes, “will be to provide all those different learning methods simultaneously and be flexible enough to change the methods as the market changes.”