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Disclaimer: I have nothing to do with Magnatune other than being an infrequent
customer.
In the blog (
http://blogs.magnatune.com/buckman/2008/11/reassuring-my-musicians.html ) of
the founder of Magnatune founder John Buckman, he indicates they have a
financial problem. Many people are coming to the site to hear music, but not
many (1/150) are buying music, compared to the 1 in 32 when he started.
My analysis: his problem is that he's giving away "bandwidth" too freely, even
if he's appropriately giving away "the music" under voluntary pricing or
creative commons licenses. I admire the humanitarian & political implications
of his desire not to be "evil" in his pricing schemes. Is there a way to
accomplish this in a business setting, to let people experience the music,
without giving away the store in bandwidth?
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On 4/8/2009 6:42 AM, gregjohn wrote:
> Is there a way to
> accomplish this in a business setting, to let people experience the music,
> without giving away the store in bandwidth?
Yeah. Allow people X downloads per day without donating, or unlimited
if they've donated.
That'll raise the ratio of givers to takers.
--
...Chambers
www.pacificwebguy.com
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> Yeah. Allow people X downloads per day without donating, or unlimited if
> they've donated.
>
> That'll raise the ratio of givers to takers.
Yeh, that model is so popular that I guess it works. Allow people some
restricted version for free, then get them to pay up for unrestricted
access. The key choices are how much to charge and how much to restrict for
the free version to get maximum profit. A bit of market research and
financial modelling should get you in the right ball-park with those
decisions.
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gregjohn wrote:
> Disclaimer: I have nothing to do with Magnatune other than being an infrequent
> customer.
>
> In the blog (
> http://blogs.magnatune.com/buckman/2008/11/reassuring-my-musicians.html ) of
> the founder of Magnatune founder John Buckman, he indicates they have a
> financial problem. Many people are coming to the site to hear music, but not
> many (1/150) are buying music, compared to the 1 in 32 when he started.
>
> My analysis: his problem is that he's giving away "bandwidth" too freely, even
> if he's appropriately giving away "the music" under voluntary pricing or
> creative commons licenses. I admire the humanitarian & political implications
> of his desire not to be "evil" in his pricing schemes. Is there a way to
> accomplish this in a business setting, to let people experience the music,
> without giving away the store in bandwidth?
Yes. Every registered user may download X amount of content per week
(measured in songs or total download byte count) without paying
anything. X starts out at just enough to whet the user's appetite.
Content that is intended to be a sample counts as only a percentage of
its actual size (and this percentage may be set at zero if Buckman wants
it that way).
Every time the user purchases something, X goes up by 10 to 50 percent
for that user.
After X*N downloads by a user, without a purchase, X goes down by ten to
fifty percent. N should be greater than one, but not greater than ten.
There needs to be some protocol in place to minimize multiple accounts
for users.
Regards,
John
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To be picky, in every one of these suggested fixes, it seems like you're
creating huge disincentives to ever browse the catalog as a potential buyer
once they've passed through that first freebie period, or period past the first
donation.
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