republican-creole
site Search:


 
   
story category
ISPs Look To Bundled Music Services To Keep You Around
But will they screw it up with DRM or poor implementation?
by Karl Bode Friday 05-Feb-2010 tags: business · alternatives · content · consumers
According to Billboard Magazine, the average broadband ISP loses about 1.4% of their customers per month (aka churn), 14.5% annually, or over 2.1 million customers each year. Comcast for example, with their average customer paying $43 per month, stands to lose $1.1 billion lost from churn every year. How do you keep those customers around? Billboard proposes that by tying consumers to a streaming music service, ISPs could reduce that churn substantially:

A music service alone may not be able to cut every broadband supplier's churn in half, but even a small improvement would carry big results. What if a music service could reduce churn by 10%? The positive impact over five years, net of taxes, has a present value of $162 million. A 20% churn reduction means a $325 million improvement. And so on.

Of course this is the broadband industry we're talking about. As carriers have stripped services away from subscribers (like newsgroup access), they haven't been replacing them with a whole lot of added value services. Instead, over the last few years the industry has taken a page from the wireless industry and started signing users to long term contracts and imposing early termination fees (ETFs) to force people into sticking around.

While a music subscription service might please some users, Wired News worries that tie your music to one particular ISP with DRM, making them annoying to the consumer. If add-on subscription music services are going to work, they're going to need to be good -- and add value, argues Wired:

Given that, here's a novel approach that ISPs might want to consider rather than using music to keep customers tied to their accounts. Internet service providers should offer music services as an additional feature, rather than a mandatory bundle, and rather than tying subscribers' music collections to their accounts, ISPs should agree to provide metadata for the entire collection, in a standard format, to whatever ISP or music service the customer goes to next.

Comcast is rumored to be working on one such service for $5 or more a month, though the details remain scarce. Also at play as ISPs consider these services is the recording industry's desire to impose a monthly surcharge to all broadband subscribers for access to music -- whether they want to make the choice or not. Whether these services are mandatory, whether it's a free value-added service, and whether they're loaded with DRM tying the user's catalog to one ISP -- will make all the difference in the world.

view: topics flat text 
Post a:
firewire9999

join:2004-07-11
Livonia, MI

1 edit

No bundled crap with my internet

I don't need any bundled music services or what ever crap with my internet thank you.

Just give me a reliable connection with no stupid caps, throttling or what ever.

Right now I am happy with my internet connection the way it is.
dan991199

join:2007-10-01
St Catharines, ON

Re: No bundled crap with my internet

i doubt this is going to work out too well for them.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

1 edit

Re: No bundled crap with my internet

All I really need is more upstream bandwidth. This might be a technical challenge though.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: No bundled crap with my internet

said by fifty nine:

All I really need is more upstream bandwidth. This might be a technical challenge though.
We keep asking for more upload and just keep getting ignored.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

BBBanditRuR
Dingbits

join:2009-06-02
Parachute, CO
Yeah, I'm getting a little concerned ISP's/cablecos like Comcast are taking more and more of a stake in content. I'm getting the feeling something (like Internet service) is going to suffer...

That's all I need from an ISP, just Internet.

John McClane
yippee ki yay
Premium
join:2005-03-19
agreed. I just want a dumb pipe.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: No bundled crap with my internet

And the sooner they realize that is all they really are, the better we all will be.

Sabre
Di relung hatiku bernyanyi bidadari

join:2005-05-17
More than likely, I'd bet it'd be one of those "value-added" services that they tack on to justify not lowering the price. Along with email, (sometimes) newsgroup access, free security software, webspace, that sort of thing.

Probably if it appears it'll just be an excuse like that to maintain the status quo of pricing.
nasadude

join:2001-10-05
Rockville, MD
Reviews:
·Verizon FiOS
said by firewire9999:

...

Just give me a reliable connection with no stupid caps, throttling or what ever.
...
the problem is that the big ISPs (comcast, etc) are scared to death of becoming "dumb pipe" providers. They want to monetize every aspect of the internet and make you pay for ever more "services".

I agree with you - all I want is a dumb, fast pipe to the internet.
chronoss2009
Premium
join:2008-09-23
kudos:2
said by firewire9999:

I don't need any bundled music services or what ever crap with my internet thank you.

Just give me a reliable connection with no stupid caps, throttling or what ever.

Right now I am happy with my internet connection the way it is.
agreed they dont get it yet but they will when they lose money or the uptake on this is so small that it isn't worth promoting

give it ten years folks them old timers will be dead and things will get slowly better, more sane.

Van
Premium
join:2009-07-08
New Orleans, LA

It wouldn't shock me if sooner or later

they say we HAVE to have it if we want their service

Another, "It will make the customers service better" line.....

jeffro

join:2007-04-20
Bay City, MI

Re: It wouldn't shock me if sooner or later

Don't want it or need it. Just give me stable service and I'm happy.
Pv8man

join:2008-07-24
Hammond, IN

Police want backdoor to Web users private data

Police want backdoor to Web users private data

»news.cnet.com/8301-13578_3-10446503-38.html

jjoshua
Premium
join:2001-06-01
Scotch Plains, NJ
kudos:1

USENET

The ISPs couldn't afford to bundle USENET service. Now they want to bundle music?

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: USENET

said by jjoshua:

The ISPs couldn't afford to bundle USENET service. Now they want to bundle music?
their version of music is most likely low bitrate DRM infested crap.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee
Rob_
Premium
join:2008-07-16
Mary Esther, FL

Re: USENET

Id take FLAC or .wav then burn it to CD. no need for mp3s anymore.
Desdinova
Premium
join:2003-01-26
Gaithersburg, MD

But...

What I don't see mentioned is that churn works both ways. Of the $1.1 billion loss mentioned, how much of that will be offset from folks fleeing TO Comcast from another service? If anything, more folks are going online than those who decide to ditch internet access altogether so at the end of the day, ISP revenues should continue to rise. The only question will be which of them benefits the most.

But I agree, I just want a dumb pipe with competitive speeds, no caps, and no throttling. They can keep everything else.
b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA

I don't get it?

Why would I pay a monthly fee to listen to music?

commbunch

join:2007-06-25
Cypress, TX

Re: I don't get it?

I agree. With all the online radio stations and other legit sources for content, I dont' see any "added value" from this service.

I'm with everyone else. Make my dumb pipe faster. I'll decide what to do with it.
chronoss2009
Premium
join:2008-09-23
kudos:2

NO to that bundle

and what if i have a huge collection already
maybe then should bundle up the CEOS and put them on hte russian rocket
they could replace either the worms or the mouse

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: NO to that bundle

Iranian rocket... not the Russian one. The ruskies were in space before we were!
axiomatic

join:2006-08-23
Tomball, TX

Me too

I just want a dumb pipe.

All this other crap is just that "crap".

And if they DRM it to death it will most certainly fail.

Again to these ISP's I say... WALLED GARDENS... HAVE WALLS.
milrtime83

join:2009-11-04
Katy, TX

Recording industry's wishful thinking

It's things like this that some people need to be reminded that there are numbers less than 1%. The 10% or 20% hypothetically reduced churn are just wishful thinking and based on absolutely nothing. Whether it is by legal means or not, it doesn't change the fact that there are many ways for customers to get all the music they want already. Adding some sort of subscription to people's internet costs isn't going to give people a reason to stay with a particular isp when they can get all the music they want already from other sources. It will most likely just raise prices whether it is an obvious "fee" for the service or a "free" service that has its costs hidden in with the regular price.
BosstonesOwn

join:2002-12-15
Everett, MA
Reviews:
·Comcast

Please just stop...

Stop already with the "value added" services. It does not add value t most of us. In this tough economic time , we need price cuts , not more crap added to the service to justify your price rising bi annual festival celebrations.

Seriously can we just get price cuts instead of this crap ? I don't wan't it bundled , I don't it paid for via a "fee" added to my bill. I just want more money in my pocket so I can actually pay bills and maybe feed the kids something decent.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
mexicali100

join:2010-01-04
Schenectady, NY

Crapware

I can just imagine all the crapware users would have to install to use this "Value added" service. There will be a proprietary music (adware) client that will hijack every media file association, five toolbars for IE, Norton antivirus that will be good for about 5 days than pop up every day thereafter. When you boot your computer it will say "Welcome to Verizon"...... Yeah that's going to be a great value added service.
old_wiz_60

join:2005-06-03
Bedford, MA

early termination/contract

They would much rather do this than provide good service. Why offer good service when you can screw customers with ETF/long term contracts?

Meandyou

@comcast.net

Music Service?

I don't see a music service being the saving grace for ISP's. AN ISP should just focus on providing reliable conections to their customers. Content I can get once I get on line. Music is not the driving force for me to go on line. I run my hobby business, read the news, browse personal ads, download an occasional MP3, play games, look up interesting material and communicate with my friends and family.

These ISP's are trying to go to metered billing systems so they can throw GB's and GB's of content at us all to make us go over our monthly limits so they can charge more money. Do they really think we don't see through this?

Who are these stupid managers that sit in the conference room on Wednesday afternoon managers meetings and think up these insane ideas?

maartena
Elmo
Premium
join:2002-05-10
Orange, CA
kudos:1
Reviews:
·AT&T U-Verse
·DIRECTV

I want a dumb pipe.

An IP address please. I think that is about all I need from my ISP.... maybe DNS servers, but I am using OpenDNS now anyways.

I have my own domain for email, my own usenet servers for newsgroup access, and unless they are going to give me a discount over iTunes AND give me DRM-free music, I don't want any music service.
--
"I reject your reality and substitute my own!"
bn1221

join:2009-04-29
Cortland, NY

Stop the insanity

Don't give me music or crap tv or crap email or 5 MB of webspace or any junk like DNS redirections and free A/V

Just knock 10 bucks off my bill I'll stick with my Checkpoint appliance, OpenDNS and Avast.

Thanks !
paul7986

join:2009-09-09
Nottingham, MD

It's free now; what would this offer me?

I just listen music on youtube either on my iPhone or laptop. I discover new music through Pandora or Last.fm.

Wednesday, 08-Feb 10:28:59 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online! © 1999-2012 dslreports.com.