Why the record companies want SanDisk’s new ’slotMusic’ to succeed

September 22, 2008

slotmusic SanDisk, along with the four major record labels, is set to start releasing albums preloaded onto memory cards at major retailers. Is this the wave of the future or just an attempt to relive the past when the record labels had a strangle-hold on distribution?

The slotMusic cards will be available at big box retailers such as Best Buy and Walmart and contain an album of DRM-free songs in MP3 format. The company is touting the cards as a convenient way to load music onto your MP3 player without being tied to a computer or an Internet connection. Exactly how much more convenient it will be remains to be seen considering the fact that most people with an MP3 player are likely to have Internet access at home.

With Sony BMG, EMI, Universal and Warner Music Group on board, SanDisk will be able to offer up a broad selection chart-topping artists’ music on slotMusic. However, the question that consumers might be asking themselves is why these 4 record companies are suddenly so excited about selling music in the MP3 format?

Besides having resigned themselves to removing DRM from digital downloads, the record companies are still more than a little skittish about the prospect of music going entirely digital. Their concern isn’t necessarily so much about selling more music, but about controlling the packaging and distribution of albums.

When digital download stores such as iTunes and Amazon sell music, they give consumers the freedom to select individual songs. This freedom to preview tracks and only buy a few of them costs the record labels millions of dollars every year.

Simply put, the slotMusic cards are simply a play to preserve the album format for music distribution by appealing to the digital music consumer. The simple fact is that it’s not more convenient for digital music consumers to travel to a brick and mortar store in order to buy music that’s pre-packaged in a format that they don’t want.

While we might see some consumers switch over to the slotMusic format from buying compact discs to save them the trouble of ripping the tracks to their hard drives, I doubt that SanDisk will be able to take much market share from iTunes. The good news is that the Internet continues to drive consumer choice and competition, so now music listeners have one more option when buying music.

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4 Responses to “Why the record companies want SanDisk’s new ’slotMusic’ to succeed”

  1. Erik M Jacobs:

    I think it’s sad that the “album format” has gone by the way-side in favor of people buying individual tracks. There used to be a day and age where a cohesive “album” really meant something.

    It could be very interesting to see artists begin to morph into providing a constant stream of new tracks. However, there is still something to be said for toiling away in the studio for months (or years) on end, releasing a big collection of tracks as an album.

  2. Dave Jeyes:

    Erik,

    That’s definitely an interesting idea. Maybe bands will follow bloggers in releasing breaking news and songs in real time just like news organizations have started to do.

    bandblogging?

    Cheers,
    Dave

  3. Ken:

    And after a decade of fighting and thrashing and stubbornly clinging to an unwanted and not economically viable model, they are still clueless.

    And if bands really want to release a concept, release it as one big MP3.

  4. Dave Jeyes:

    Ken,

    I’m not sure how releasing one big mp3 with lots of songs on it really helps artists. I think that the structure of the record industry could very well be flattened out by market forces on the Internet and that without fatcat suits in the way, maybe more artists can make an honest buck.

    Maybe you can clarify?
    Dave Jeyes

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