Why AnywhereCD Failed
An anonymous reader writes "In an obituary for AnywhereCD, which closes in one week, founder (and MP3.com founder) Michael Robertson chronicles how at least one record label wanted him to embed credit card numbers of buyers into songs. A fascinating story about how at least some of the labels still don't get it and why AnywhereCD is about to be buried."
Here is the real reason the business model failed:
"I believe that if you give people real value (music or anything else) they are happy to pay."
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
The reason that Robertson' business didn't succeed is that the record companies are getting tired of dealing with third-party vendors selling their music. They want total control over their content, whether it be distribution, payment methods, and DRM. They want to decide how you buy it, how much it cost, and what you can do with your purchased music. We're seeing this come to light now, with Universal and others pulling out of iTunes and controlling distribution internally.
If you post as Anonymous Coward, don't expect a reply.
I have to agree with his biggest point, that people WANT the music, but they also insist on value. This is an area where The Labels have failed to grasp onto the idea of adapting to the medium of the day: the Internet.
Isn't there a theory about failing to adapt and thus failing to survive? Sounds familiar for some reason. (Though, in this unfortunate case, failing to adapt to lack of adaptation lead to demise. Sounds soooo bass akwards!)
for a good price, and I'll buy. Keep the CD, I'll burn my own. As much as Robertson tried, he still didn't get it.
Enjoy Every Sandwich
Raise your hand if you both a) have heard of AnywhereCD and b) purchased anything from them.
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Don't confuse good business with ignorance. Just because they act like assholes doesn't mean they don't know what they are doing.
I'd never heard of them until today - and I practically live online. They must not have been marketing all that much for me to have not even heard of them.
In any event, it sounds like AnywhereCD had a pretty decent business idea, except maybe that it should be the CD as the "addon" instead of the downloads.
I wonder if Apple or any of the other major retailers will ever offer an option like "buy this digital album for $x and for $y more get a CD copy". I don't see why not. CD's are so cheap you could sell them as add ons for say $5 dollars more than the download and make a nice profit. Plus the buyer will have the permanency of the CD.
I did a search for anything here on the
There are only 10 kinds of people in this world... those who understand binary and those who don't
The idea for anywhereCD was great, maybe a decade ago, I remember a few digital music companies tried similar things but nothing ever on the scale of this. However now the labels are starting to change from their 'sue everyone' attitude which has helped contribute to the digital music monoculture where you play with Apple or you don't play at all. Perhaps most radical is Warner brothers who have basicly made their whole catalog available for free, online at imeem.com - a couple of months ago they were suing imeem over its 'youtube for music' model, but then they surprised everyone by signing a deal.
unless it comes wrapped in a mountain of DRM. Let's face it - the entire recording industry's existence is based on its ability to gouge artists on one ends and consumers on the other. They could get away with this because they controlled who had access to their expensive studios and who could get heard on the radio (Payola lives to this day), what was carried in stores, and more importantly what was promoted in stores. The value of each and every one of these points of control is diminishing by the minute. The labels are all fucked, they know it and they're grasping at whatever straws they can and dragging their feet wherever possible. It's all just delaying the inevitable - people will buy reasonably priced music (look at the success of iTunes), but they won't get fucked if they no longer have to. Siooma, motherfuckers.
Help save the critically endangered Blue Iguana
Sorry, no one is addressing the real problems:
The music sucks. Maybe one good song on an album.
Little girls who can't sing dancing on stage with no cloths
Utter and complete pathological need to control the content
contempt for their customers
Failure to recognize that people like music on CDs, MP3 playes, and their computers and don't want to pay three times.
Am I the only one whose jaw just about hit the floor when reading this asinine comment? It absolutely amazes me that ANYBODY would make such a suggestion. I could see identity thieves salivating at the thought of this. (Yes, I know you would need more than just the number to really do anything with it)
That guy should see if the job of CEO at Sony is available...
"A fascinating story about how at least some of the labels still don't get it and why "
Well I suppose if the lesson is, "we don't want to be held accountable for our actions."? I can see why no one with a "reciprocal agreement" business model would "get it". Do you think the consumer will ever figure out what it means to live in a society?
The site looks awful. Maybe the selection used to be better, but what I see there now certainly doesn't warrant excitement or press coverage. I generally find the work that Michael Robertson does interesting but this isn't a project I'd have taken much notice to on it's own merits. At least not as it currently stands.
Quack, quack.
The only way the labels can make a profit off of digital downloads is to offer a subscription to their entire library, with on-demand access to any album, available at home and on the road, without any restrictions. That way, you eliminate the need for illegal downloads and file sharing. People will gladly pay for that. I would. And this, of course, does not apply to people who still want to buy CD's for the sake of an official tangible package from the artist. The day this happens, we all win.
Give me lossless compression please, although uncompressed is fine too.
The cesspool just got a check and balance.
Aren't most record companies part of bigger media companies? There doesn't seem to be anyone above them saying, "you are aren't adapting to the changing market dynamics, start adapting."
Has there been any change in management or management philosophy that I am not aware of?
Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
Rather than just "Download file" you've got to download some random third party app to actually receive your music on MP3.
Test your net with Netalyzr
Somehow I suspect the credit card companies wouldn't like that idea. It would use the PAN in an area where it is not required and storing it (presumably) unencrypted.
"I may disagree with what you say, but I will defend unto the death your right to say it." -- Voltaire
Michael Robertson chronicles how at least one record label wanted him to embed credit card numbers of buyers into songs.
Credit gift cards are excellent to use if you're buying stuff online and don't want the vendor to have any personal info. Good for sites like mp3sparks. Or if you're buying modchips. Or any online transaction where you don't want the buyer to know anything about you, or have any access to your accounts.
Or so I hear.
Weaselmancer
rediculous.
I believe the real reason is that no one has really heard of the service and the site seems pretty amateurish.
- Until 9/30 most all of the CDs are $7 which includes a physical CD and 192K MP3 files loaded nicely and permanently into your locker.
- One poster complained you can't download the MP3 file without installing an application. That's inaccurate. You can download all the tracks individually directly from the locker - no application install required. Just click on the triangle in the flash UI and select "download".
- We do provide several different applications for your convenience all of which work on Linux as well as the other PC OSes. There's an Album Downloader which will with one click download any new purchases and load into iTunes or your fave media player. There's also Locker Sync 3.0 which will sync your entire music library from locker to PC. So lots of different options.
- Slashdotters might be interested in our API (see: http://mp3tunes.com/api). My vision is all your music goes into your personal locker and then with a click can be streamed or synced to ANY device in the world. It's a very open view of the world and of your media. We have 100,000 lockers and a great list of devices coming by this holiday season all of which talk directly to a locker. We're even having a contest to spur developers for $10,000 to come up with new music devices/interfaces: See http://mp3tunes.com/contest
-- MR
So, I figure I'd throw a few bucks into the company's till try to find some music I like. I did find some oldish Oakenfold I never got around to buying, so I got it, followed the instructions in the email they sent me and figured I download the mp3s while I ran some errands. The only problem is I can't.
Well, that's not the only problem. Problem #1 is that I have to download some third party app to download the mp3s, which doesn't make sense: I have downloaded thousands of things off of websites, and none of them has needed a third party app. What does this third party app do? Does it install spyware on my system? Does it report back to the record companies? Where's the info telling me what it does? But I did it anyway, cause I want my music. Only now, it won't download anything: it's stuck in "adding album to queue", where it's been for fifteen minutes. I looked in the email, and it mentioned another way to download the tracks, which is to click on the Playlist in my online music locker. Only problem is that the music I just bought isn't there, so I can't download it. Boy, I hope I get the CD in the mail, or I just wasted $20 on nothing. Or, in other words, I just got ripped off
So, Mr. Robertson, your idea failed for one simple reason: it sucks. Apple's iTunes Music Store runs circles around CDAnywhere in ease of use and execution. So does eMusic.com. You failed to produce a competitive product, plain and simple, and all the conspiracy theories in the world won't explain it away.
I am a believer of momentum and curves.
doing some advertising? I never even heard of this outfit before today. And I probably would have bought
some stuff from them, depending on the price. Heck, while I'm at it, I'm taking advantage of the "closeout sale"
to pick up some stuff I didn't have (a couple of Kix and Skid Row CDs) for cheap.
// TODO: Insert Cool Sig
Why should artists remain with them in this scenario?
Artists need a label if they desire a certain level of commercial success. It takes a lot of money to promote an artist and bring them to the attention of the mass national or world market. Artists can not afford to do this on the money they making playing in small venues, among their core audience. If they manage to feed themselves they are doing above average, if they can support a family they are so rare they are nearly an anomoly.
The label system persists because there will always be some artists who want large scale success. Of course these successful artists gripe when they think about the small percentage they receive themselves but the truth is they are getting a small percentage of a much larger pie. If you are only getting 5 cents on the dollar, but you are generating several hundred times (or more) the revenue then they are far ahead.. To be faiir to the labels they need a disproportionately large cut from one artist to pay for the dozens of other artists they had *speculatively* financed they did not attain large scale commercial success. Please understand that I am not saying the current label/artist split is correct, I have no way to calculate what the split should be. I am merely arguing that the label system is quite logical and it is economically justifiable for the labels to receive a large percentage due to the speculative nature of their investments.
Artists have almost always needed patrons throughout history. Centuries ago it was the church, royalty, or the wealthy. Today the record label fulfills that role.
I would not be surprised to see this develop to their logical conclusion where there are distribution sites that offer a range of services to artists to distribute their work but do not "own" the distribution or copyrights to those works. This can only help artists in the long run, although the conversion to that environment will mostly likely have some short-term hiccups as marketing etc is worked out.
The marketing required is far beyond hiccup level. What is the source of money used to *speculatively* promote an artist beyond the level I decribed above?
Sounds like Rhapsody.
Oh please...its obviously a marketing ploy. Hurry come buy mindlessly while supplies last, only 5 days left on this greaaaat offer.
I was tempted by the "bargain sale" and went to the website, which I thought was crudely designed and difficult to navigate. I had a lot of trouble figuring out whether there was anything there I was potentially interested in.
... "25. Track 25."
It was full of problems like this album. The title that shows up in the list, before you go to the album, is
"Most Popular Tv Themes In The"
When you click on it, you get to see the cover art, and learn that the album title is "The Most Popular Classical TV Themes in the Universe." And what's on it? Well... the helpful track listing is:
"1. Track 1," "2. Track 2,"
The conductor? The orchestra? Who knows?
"How to Do Nothing," kids activities, back in print!
What if you're running on a PowerPC Linux box, amongst other things?
No Flash plugin there for you. It's not about refusals, per se.
I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
I think it's inevitable that the internet replaces traditional media but it means the death of the super star. We'll go back to more regional artists with few cross region cross overs if there is a lack of a artificial national hype machine like the labels.
I don't think this implies regional artists, but a LOT more self-promoting, small label, indy artists. In the end, we can only hope, artists with interesting, creative, innovative music will grow their own following and end up doing a lot of their own distribution, with small download distributors like, oh I dunno, http://www.bitworksmusic.com/, helping them to do it themselves.
The cool thing is, download distribution is still in its infancy. Artists need to evolve their notion of the download medium. They're selling software now, not just music.
BitWorksMusic.com -- odd tunes for odd times
The real news in this article is that, according to Michael Robertson, iTunes is selling EMI's catalog as MP3 files. Here, all this time, I thought it was an 256k AAC file.
He stated this fallacy twice. Perhaps the real problem is that he isn't keeping accurate tabs on the competition! (Though, in his defense, his other reasons are all pretty sound as well.)
Live and learn.
Let me 'splain you something: Any business model that includes "and then, we get the [Record and/or Movie] companies to slightly change their business model", just close up shop now (unless your name is Steve Jobs, Richard Branson, or you're the head of some other corporation with so much weight that the RIAA or MPAA have to take you seriously). Second, it might have seemed like a great idea to *you*, but that doesn't count for much. In fact, the simple fact that nobody has tried it *before* you probably means that nobody else thought it could fly.
So, your start-up flopped. Get over it.
The Catch-22 is that the artists, generally, rely on the record labels to spread their sound so that people find them worth buying in the first place (whether because it's a genuinely good sound or because it's the sound of the week).
The record companies, therefore, have craftily built themselves into positions of power by becoming the ones who decide which records get the most attention, and we the consumers take our buying cues from this attention. The consumers pick which ones rise all the way to the top, but from among a field chosen by the record companies.
Since the record companies have legitimate claims to manage the music from artists signed to them, it won't be until we look en masse for buying cues from elsewhere.
Frankly, I'd love to be able to say I did around and find the music out there that most appeals to me, but digging through all the crap to find a few good records is a lot of work. I personally don't know where to look to be exposed to a cut of decent music. For the most part the radio stations have failed in that respect too.
Of course, the record companies are also able to preserve their position by being the guys with money that your stereotypical starving artists crawls to when they actually press a record.
"Stolen iPods, insecure PCs, worms and the likes would soon be a source for extracting that information. Not good."
Oh right. Pull the other finger. Why does slashdot treat it's audience like idiots? You know as well as I do that the majority of the material out there was placed intentionally by "customers".
This Slashdotting of the Going Out of Business posting is the first I've ever heard of AnywhereCD. Which is unfortunate, because I'd be a customer.
I have about 400 CDs, and buy one or two a month from Amazon. If I could get the same CDs, at approximately the same price but someone else would do the ripping for me, I'd be there.
Where did they advertise?
Everythign you said is insightful and logical. The only problem is the "old boy's network"... you still need to be an insider to get anything done. There's payola to overcome and marketing would be a huge hurdle as well.
Here's an excerpt from the San Jose Mercury News article, "Why commerce is killing the true spirit of hip-hop" by Davey D 03/2007. The original article is gone from the Mercury's website and not in their archives for some reason. (tin-foil-hat)
In our conversation, Porter [Paul Porter former music programmer for BET] also pointed to something more sinister: payola. He claimed hip-hop is dead only because payola is rampant at labels intent on investing in songs with sexual and violent themes. During a separate conversation, Questlove of the Roots supported Porter's allegation with his own story about the process behind the group's Grammy-winning hit with Erykah Badu, ``You Got Me.'' He said the Roots had to pony up close to ``a million dollars'' to a middle man who ``worked his magic'' at radio stations.
Deltron 3030 - Virus (music video)
Or maybe, just maybe you lost your only major label contract. Well, at least he has the right lack of ethics to be a music distributor. I suppose the truth might impact his firesale.
According to the main page right now they only have 5921 different albums to choose from. Wheres the long tail? My music store wont launch with such a puny collection... If it ever does launch, geez, I've been working on it off and on for like 5 years...
-John Fenley