And the copycats keep rolling in. This time it’s 7digital, a European online music retailer who’s taking its turn at the US market, the latest MP3 store to challenge Apple’s iTunes kingdom. 7digital’s pricing reflects the company’s obsession with the number 7: single tracks for 77 cents, albums for $7.77. Easily 20% less than Apple typically charges but still no guarantee that it will help 7digital to break Apple’s stranglehold over the market. Remember, others have tried, some are still trying, and to date, no serious threat has emerged. 7digital is counting on partnerships with the likes of LastFM and Spotifyin order to crack the market open.
The risk in partnering with a the likes of LastFM and other streaming service is that users won’t be interested in buying. When was the last time you “bought” a music streaming through your FM radio? And with free music streaming available elsewhere, why would they want to? Admittedly, seventy-seven cents is an aggressive price, but the right balance between the royalties for downloadable tracks and the ones for streams has not quite settled. Unfortunately, it appears 7digital will be heading to the same unprofitable limbo that many would-be iTunes conquerors now find themselves in. Yet, they appear undaunted.
