4 ms·

I totally get the major labels making the 1.5% increase/3-month trial concession; but after nearly every independent artist I pay attention to basically said th

by oddevan 11y ago

I totally get the major labels making the 1.5% increase/3-month trial concession; but after nearly every independent artist I pay attention to basically said they couldn't/wouldn't make the same concession, I'm glad Apple relented. I want one of these services to at least act like they appreciate the value of music. Myself, I've never made enough off that one rap CD to recoup the cost of sending it to CD Baby, so I've got NO skin in this fight. :)

FireBeyond 11y ago
Eh, 1.5% extra for a 3 month trial with no royalties was utterly contemptual and only appealing to those who couldn't do math: 100/1.5 = 66.67 x 3 months = 200 months to recoup the lost royalties. For a music streaming service, looking to recoup your lost royalties after almost 17 YEARS (and only getting 1.5% extra at that) is laughable.
- Joky 11y ago
  It looks to me like this reasoning is laughable. It looks like the same reasoning as when the major are counting every single pirated song as a "missing sale". Like if it would have translated in a sale otherwise... The three months free period is intended to make the amount of paid customer bigger after the three months, so you have to account for that (and you don't). I don't know what is the predicted impact of the three months on the subscription numbers, but let's imagine you would have a two times faster market penetration. After a year you would have 3 months free and then 9 months with double amount royalties, compared to 12 months single royalties.
  - FireBeyond 11y ago
    So you do make a valid point, but I think your estimation of the impact is vastly overrated, too. Number of users who will pay for Apple Music with no trial or a 1 month trial (as per Spotify, Rdio, et al) = x, Number of users who would not pay for Apple Music with no trial but will after a 3 month free trial = 2x? Doubtful. I think the order of magnitude in people for whom the three month trial is in the order of single digit percentages, at most (because I'm sure other music services have A/B tested this). "1 month vs 3 month trial" is not revolutionary nor out of left field, and I can guarantee if the there was a 100% increase in customer base by Spotify offering a three month trial, they would be doing that right now.

by oddevan 11y ago

FireBeyond 11y ago

Eh, 1.5% extra for a 3 month trial with no royalties was utterly contemptual and only appealing to those who couldn't do math: 100/1.5 = 66.67 x 3 months = 200 months to recoup the lost royalties. For a music streaming service, looking to recoup your lost royalties after almost 17 YEARS (and only getting 1.5% extra at that) is laughable.

Joky 11y ago
It looks to me like this reasoning is laughable. It looks like the same reasoning as when the major are counting every single pirated song as a "missing sale". Like if it would have translated in a sale otherwise... The three months free period is intended to make the amount of paid customer bigger after the three months, so you have to account for that (and you don't). I don't know what is the predicted impact of the three months on the subscription numbers, but let's imagine you would have a two times faster market penetration. After a year you would have 3 months free and then 9 months with double amount royalties, compared to 12 months single royalties.
- FireBeyond 11y ago
  So you do make a valid point, but I think your estimation of the impact is vastly overrated, too. Number of users who will pay for Apple Music with no trial or a 1 month trial (as per Spotify, Rdio, et al) = x, Number of users who would not pay for Apple Music with no trial but will after a 3 month free trial = 2x? Doubtful. I think the order of magnitude in people for whom the three month trial is in the order of single digit percentages, at most (because I'm sure other music services have A/B tested this). "1 month vs 3 month trial" is not revolutionary nor out of left field, and I can guarantee if the there was a 100% increase in customer base by Spotify offering a three month trial, they would be doing that right now.