Slashdot Mirror
MP3.com Removes "High-Bandwidth" Streams
mshiltonj writes "I noticed today that mp3.com no longer offers high-bandwidth streams for its genres or stations, although it looks like artists' playlists and individual songs are available in high bandwidth. mp3.com has lots and lots of free music that was free and legal to listen to online, and a good number of my "music bookmarks" were on mp3.com. I'll live (I've still got my favorite stream), but I don't think it's a good sign. Is streaming music doomed to die, not because of RIAA litigation, but because of expensive bandwidth costs?" I don't think bandwidth will be the determining cost - that's a price that has been falling and will continue to fall. But are things like iTunes store the future, or is it streaming?
DSL and cable make it look like bandwidth is cheap but it isn't. Try buying 1.5 MBytes from a major backbone and you'll see it cost between $500-750 per month including transport (that's what your ISP is paying, it would be $850-1200 if you tried it). Seven years ago the cost was $2000-2800. Seven years ago the average modem user used 500 b/s. Today the average DSL user uses 4000 b/s, but the average for P2P users on DSL is 128,000 b/s.
I've been following the discussions on ISP-PLANET and Internet providers are pretty concerned over this trend as it breaks the economic model the Internet grew-up on. Articles there are looking at changing pricing from the flat-rate structure we have now to everything from pay per MB to using dynamic bandwidth shapers to reduce the speed of large data transfers to kicking high bandwidth users off their networks entirely. The last is the most common remedy in use now.
I admit I'm an ISP. Since only 10% of users use P2P or streaming, I kick P2P users off my network. My competitor didn't and I stole half his broadband customers because his network became too congested. Now he is madly trying to block P2P after telling his customers he doesn't restrict their usage - he had thought that would get him our customers and it did get some, namely, those I didn't want because I was losing money on them. Many of the P2P types switched to cable after Adelphia started offering it here six months ago and the throughput on Adelphia's local network has dropped to less than a dial-up modem because of the congestion.
P2P and streaming (especially video or high-bandwith audio) is too expensive. About the only thing currently doable is multicast audio like Internet radio but unfortunately the RIAA want's 1.5 cents per listener per song (according to a local radio station ower who checked into it) making it infeasable for most radio stations.
MP3.com is just facing economic reality and it is doubtfull bandwidth costs will fall fast enough to allow them to resume high-bandwidth streaming of free tunes.
Mp3.com was aquired by Vivendi Universal (RIAA member) in a lawsuit.
Since then, Mp3.com's goal has gone from promoting individual (mostly unsigned) artists to promoting Vivendi artists.
Which is why Vivendi won't reconcile the accounts of Mp3.com members who are owed less than $50 (most of them) and why Vivendi artists get top billing.
Cutting the streams isn't new - Mp3.com also limited bands to uploading only one song recently, in a move that angered everyone but Vivendi Universal.
See, I'm sure the bandwidth costs were a factor. But you have to understand, you only cut those expensive items that aren't critical to your business.
Before Vivendi Universal bought Mp3.com, streams were a priority. They allowed new bands to be heard. Multiple songs were also a priority for Mp3.com, because their business was promoting new music.
Now their business is promoting Vivendi Universal music - and compared to returns (since Vivendi can afford to put their music on the radio) it's not that big a deal to them. So it - and the bands it promotes - gets shafted.