Digital Music is Dead, Long Live Digital Music: The Case for Spotify

Back in the 1990s, there was Napster. I mean, the original Napster not the shadow of a brand that is part of the Best Buy electronics offering.

Napster effectively eliminated optical media by making people realize that the digital format was the only long-term, effective, space-saving way of having music that was portable.

Sure there were MP3s before Napster, and yes, some people had decent libraries of music that they carried around on their portable MP3 players. But Napster made it mainstream by making it easy for anyone to find any music they wanted and download it.

It was illegal and rightly so. There was no way to monetize the music underground economy and intellectual property belongs to someone. So Napster got sued. A lot.

Someone along the way suggested that perhaps a more amenable for Napster to provide digital media to fans and give the record labels a reach around at the same time was the unlimited music for $9.99/mo. Napster balked saying no one would pay that kind of subscription fee.

The lawsuits became so much that the music service had to shut its doors. In an attempt to resurrect themselves just a year or two later, they finally adopted the music subscription model but it was too little too late.

Other music subscriptions came along such as Rhapsody but never gained any kind of real market share. Rhapsody is still open and charges a monthly fee but it just never gained the traction needed.

Spotify Arrives!

In 2008, a new music service, Spotify, launched in Europe. The model was of the subscription type where consumers could pay a monthly fee for the ability to stream any music in their catalog.

The service gained huge popularity in Europe while consumers in the United States clamored for access. Month after month, year after year, the rumors surfaced that Spotify was preparing their U.S. launch and it never came… until last week.

In the meantime, consumers have been inundated with cloud-based web apps. They use Gmail from the web, Facebook for interactions with friends and family, Twitter for persistent real-time communication. Consumers have lost their desire to want to own their own data, and as such, the droning drumbeat of Spotify in Europe as a music subscription service is now arriving in the U.S. past the tipping point of data ownership needs.

That’s a long way of saying – people don’t care if they own their music anymore if they’ve got everything they need in a music service that doesn’t provide ownership.

The Case for Physical and Owned Digital Media

Through the years, I’ve always been a proponent of having my music in a digital format as opposed to a streaming service. I’d rather buy the album on iTunes or Amazon MP3 and know I have it than just stream it from somewhere.

I’ve wanted to play music on demand and not have to rely on a faux-radio service like Pandora to get it done. I like Pandora. I pay for Pandora. But I can’t listen to the songs I want to on demand as part of their licensing agreement with the labels.

I like having dick-measuring competitions about how big my music library is. The bigger it is, the better I am. I must be a more serious music lover. Or so I’ve felt.

With the ownership model, I could take my music everywhere. Hell, even cars have iPod jacks in them so that 50GB library can be taken on the road. I could go for a run and listen to an assortment of playlists for just such an occasion or I could have my library with me for when I need to drum up an impromptu karaoke song and can’t remember how the song starts.

I thought.

In fact, I thought until last week when Spotify launched in the United States. Now… I don’t care about my digital music library. Every argument for it has been shattered into a million small (yet suitably sharp and jagged and “hope you’re wearing sandals so you don’t cut your feet”) pieces.

Spotify is the Music Messiah

At one point, I thought it was important to take my music with me wherever I go. I still do. Spotify has apps for every major mobile device (and if you don’t have a mobile strategy in anything, you lose) and they all tightly integrate with the web service and related desktop apps for both Windows and Mac. Everything is synced. And you can listen to music offline!

At some point I was very concerned about how big my music library was. I feared a catastrophic data loss that would wipe out my years of music collection, purchasing and playlist assembly. Of course, there were backups but that took forever over a network or to an external hard drive.

Spotify solves this by integrating with all your DRM-free music on iTunes or other music player, importing them, making them available in the cloud or offline. It also eliminates the need to have music library. Who needs a music library when every major label is signed on to provide their catalog to the service. I have the entire music world as my music library. My dick, by definition, is therefore bigger.

But the real killer in Spotify is the ingenious social aspect. Sure, you can have a lot of music. Sure, you can have playlists. Sure, you can have subscription models. Sure, you can have mobile availability.

Spotify put the biggest teenage-era “I love you” method in digital format by allowing the mix tape to be replaced by playlists… that are sharable with someone, some service or the world.

Queue up your Bieber-esque bee-bop feel good technosailor dance-esque songlists… the mix tape has gone digital!

It’s the End of the World as We Know It… And I Feel Fine

Spotify will undoubtedly continue to evolve. Launching in the United States gives them a much larger audience to tap into for feedback and expectations. I would like to see the social integration tighter and more obvious, but all in good time.

Rarely does a game changer come along. A lot of people think they have the game changing app… but it never happens. This is, in fact, the revolution that we’ve been waiting for. I no longer even think about my iTunes library, Amazon MP3 purchasing or other digital media. Everything I need is right there in my dick-sized music library.

Photo by Cerebro Humano

Do Not Lock In To One Device Lest You Kill Your Company

It’s funny. Comical even. A few weeks ago, I wrote that The iPhone is to Smartphones as IE6 was to Browsers. Most of the readers of that article agreed with me but almost all had a “but, but, but…” argument. This is because the iPhone is one sexy beast to users, even though AT&T can’t seem to support the iPhone, as we also noted.

This is a comical observation because my position was endorsed (if not directly) by Peter-Paul Koch who daintily comments that “[He] will shout at web developers who think that delicately inserting an iPhone up their ass is the same as mobile web development.” He goes on to slam the web development community to catering to the iPhone in the same broken-record way that web developers catered to IE6 ten years ago.

Photo by Matt Buchanan

And adding insult to injury, the Guardian also picked up that story and offered their own ringing endorsement for both Peter-Paul and my perspectives.

I just got off the phone with an unnamed entrepreneur who wants to build a product that, while looking to the future and planning to diversify over a variety of products, looks at Apple’s forthcoming iPad as the launch device. I will offer you the same advice I offered him as well as the same advice I offer to iPhone only products like Gowalla.

If you want to start on the iPad, fine. You better be damn sure you’re ready to diversify quickly. I don’t care if you put it on a non-touch device like, oh I don’t know, the web with a normal browser on a normal computer… do not disenfranchise users. Peter-Paul Koch notes, in the article I linked to above, that the iPhone carries only 15% of the worldwide mobile market. Yet it gets an insane amount of attention as if it was the most important product ever created.

Newsflash… it’s not. It’s not even close.

In fact, it’s still not a business class phone (with rare exception). And in fact, developers continue to ignore other platforms… like the BlackBerry.

Sidenote: It’s okay to have a mobile web interface but don’t lose the forest through the trees. Users will feel like second-hand citizens if you don’t pay attention to their needs.

Mobile developers: Think before you develop only for the iPhone or only for the iPad. Entrepreneurs: Think before you start a company or launch a product made exclusively, or designed with a business model only for the iPhone or the iPad.

The Best Business Smartphone Available (Today)

Chances are, if you are reading this blog, then you have some affinity to technology and that you’re in the business of technology (whether directly, or using technology to do your job – and I don’t mean having a computer on your desk at work). This is a pretty tech-savvy crowd around these parts so I’m guessing that most of you own a smartphone of some sort. Many have iPhones. Perhaps as many have BlackBerrys. A few of you are sad, sad people who own Treos.

A swath of new smartphones have just hit the market and, though I don’t claim to be a gadget or phone blogger (Really, you need to go read Boy Genius and Gizmodo for a far more geeky and informative analysis of all the various devices that hit the market), I do know that I’m a businessman and entrepreneur. I know that, from my perspective, there are key principles and requirements in any phone.

In order for a businessperson or entrepreneur to invest in a phone (again, from my perspective), there needs to be a few key things.

  1. Email – Clearly the killer app forever now, any phone must support email. As part of this, there needs to be a wireless sync/push feature.
  2. Productivity – Any smartphone needs to be able to open files from major vendors – Word, Excel, PDFs, Images, etc.
  3. Competent mobile browser – As mobile professionals, we need the web more than the average home user. We need access to sites that are not inherently broken because they appear on the mobile device.
  4. Reliable network – This is not a plug for Verizon because several U.S. and international carriers can be considered “reliable”. Whatever the network that the phone is on, it needs to be reliable.
  5. Third Party Applications – How easy is it to add apps that you need to your phone? Are there quality apps available or not?
  6. Copy and Paste – One of those “Duh” features that is essential.

You may notice some notable omissions from this list that emphasize the angle of business utility. For instance, cameras, WiFi and GPS are all nice but unnecessary for business. Touch screens, such as the one that comes with the iPhone or BlackBerry Storm are also nice additions, but not required for business utility.

In my mind, there are three phones on the market that are worth considering for business use. I have my preference on which one is best, but businesses all have to decide what their needs are and, if they are practical, choose among one of these three devices.

Apple iPhone 3G S

apple-iphone-3gThe third generation iPhone just hit the market on June 19th. It boasts all of the features of the iPhone 3G plus a quicker OS and a better camera. Most of the new features of the iPhone are available via an OS 3.0 upgrade available for free for older iPhone owners. With the new iPhone, you can tether your iPhone for broadband access on your laptop (except AT&T customers in the US), and an all important Remote Wipe capability that will allow network administrators to remove sensitive data in case the phone is lost or stolen. Cost: $199 with new two year contract from AT&T (US)

Pros

  • Huge number of third party apps including many business apps via the iTunes App Store
  • Remote Wipe
  • Intuitive touch screen
  • WiFi or 3G connectivity

Cons

  • AT&T as the carrier in the United States has been hugely unreliable delivering even basic services like voice mail
  • Exorbitant data plan fees
  • Large glass screen lends itself to breakage
  • Insecure Microsoft Exchange integration
  • Inability to multi-task applications

Palm Pre

palm-prePalm used to be the dominant manufacturer of handheld devices. With the rising popularity of BlackBerrys and iPhones, Palm has slipped tremendously. They recently, however, came to market with a very sleek phone that has an open development structure with their WebOS. Unlike the iPhone, the Pre does a very good job of multitasking and with it’s touch screen, switching between open applications is a smooth process. Also unlike the iPhone, the Pre provides a physical keyboard that, while somewhat awkward to use, should appease users who like the tactile feel of actual keys. Cost: $199 with new two year contract from Sprint.

Pros

  • Small form factor
  • Sprint has a very good data network
  • Bright HVGA screen (touch screen)
  • Email and integration with Microsoft Exchange
  • WiFi or 3G connectivity
  • Classic Konami Nintendo game Contra code to unlock developer mode. Geek Props.

Cons

  • Screen is much smaller than the iPhone
  • Awkward slide out keyboard with tiny keys makes typing difficult
  • Third party application availability is limited at this time
  • No Remote Wipe, a security requirement that might prevent large scale adoption in enterprise

BlackBerry Tour 9630

blackberry-tour-96301For BlackBerry afficionados, the new BlackBerry Tour (available for both Sprint and Verizon Wireless) is a beautiful phone. It has the brilliant screen (if slightly smaller version) as the BlackBerry Bold from AT&T and the form factor and keyboard styling of the new BlackBerry Curve 8350i (from Sprint). It has all the Enterprise integration that BlackBerry has been known for including remote wipe and Exchange integration (via Blackberry Enterprise Server for Exchange). Cost: $199 with new two year contract on Sprint or Verizon Wireless

Pros

  • Familiar usability for BlackBerry users
  • OS 4.7, which includes a usable browser (departure from the norm)
  • Multi-tasking applications

Cons

  • No touch screen
  • Awkward position of MicroUSB slot makes it difficult for right handed users to use the device while it is plugged in
  • Still no competent native Mac support, though this is supposedly coming soon.

At the end of the day, each organization needs to determine what is best for them. iPhones are fantastic devices for custom applications and is being used in the military, enterprise and government alike. They are not the most secure devices though and, for now, require AT&T in the U.S. The Palm Pre offers a significant value for businesses, but lacks Enterprise features such as remote wipe. It is also the first generation model of this phone. The BlackBerry is the most utilitarian phone and remains popular for businesses but its lack of a touch screen, the likes of which Apple has made us expect and long for, makes it “meh” for some users.

Whatever works for you.

The iPhone still is not a Business Phone

Since the launch of the original iPhone almost two years ago, it has been the position of this journalist, that the iPhone is not equipped, nor designed to be a business class phone. Although Apple has done a lot to address the concerns raised by many around the time of the original launch, such as third party apps and 3G speed, there are still inherent (and potentially unsolvable) problems with the phone.

Without a doubt, the iPhone is the sexiest phone on the market. Even with Research in Motion’s Blackberry Storm launch and a variety of other touch screen devices from other manufacturers, nothing meets, much less exceeds, the beauty and elegance of an iPhone. With it’s intuitive scrolling interface, the presence of a real web browser and hours of entertainment value via games from the app store, iPod capability and social networking capability, a la Livingston Communication’s Mobile Manifesto, there is no doubt that the iPhone is the device of choice for the long tail of consumers.

However, the finger typing (as opposed to tactile QWERTY keyboard of other devices, such as Blackberrys) poses a significant architectural barrier to business adoption. From a business standpoint, a mobile device is meant for utility. Email, productivity, and collaboration. That’s what we in business need from our phones, no? We need to be able to ensure connectivity to mission critical offices, and projects.

In Washington, we are a working class. We may not be the working class, as bandied around in political campaigns, but we are a town driven by long hours, massive public-interest footprints and a very east-coast “on the go” mentality. In Washington, Verizon Wireless rules the roost because of solid coverage and underground Metro coverage (granted, other carriers will have expanded coverage by the end of the year and full access by 2012).

During the Inauguration, while those in proximity to me (on the National Mall) lost coverage for all or a portion of the ceremony while using the Sprint, AT&T and T-Mobile networks, Verizon Wireless troopered on without so much as a hiccup.

So, let’s review the iPhone. The iPhone is locked into the AT&T network (for now). Therefore, large collections of iPhones all throttle the same towers as opposed to dispersion of traffic across a multitude of networks. FAIL.

The iPhone presents significant usability and utility challenges to the “working” American due to the finger touch system. Additionally, the lack of viable Exchange integration (sorry, the iPhone OS 2.0 upgrade providing ActiveSync is junk), and lack of Group Policy mechanisms that prevent IT Administrators from effectively tying into a Enterprise Active Directory structure and enforcing group policy and security across an infrastructure in the same way they can for Windows Mobile or Blackberry devices, will continue to prevent the iPhone from seeing widespread adoption in enterprise environments.

Be Nimble, Be Quick, Grow

Last night I spent the evening rubbing shoulders with some of the best and brightest traditional (and some online) marketers in the Capital Wasteland Region at a holiday party (There are many of them this time of year, are there not?).

As I stood there talking with a frequent reader of this blog, who also happened to work at Potomac Tech Wire, we got to discussing lessons learned from various times in our careers. I remember distinctly one of these moments from my days at b5media, which challenged me to remember that even though you think you know your job, career, industry or environment… you really don’t.

It was a Thursday night, like any other Thursday night. My son was in bed and my wife and I were dlipping around channels. One of our favorite shows, The Unit had just gone off at 10pm when all of the sudden, my Blackberry started buzzing. Annoyed, I glanced at it and saw alerts pouring in that the b5media servers were going down.

In those early days, I was the only full time tech person with b5media but Sean was putting in some hours as well. Both our Blackberrys were going off. Off to work, we went, at 10:05 pm.

It took awhile to go through the normal routines of checkup, because things were not responding at all. Finally logging in, Sean managed to dig around at all the usual traffic suspects but didn’t find any of them getting any kind of significant traffic. Trolling around more, we found out actually that this site was doing tremendously well after an episode ended minutes before with a cliffhanger that made fans think the main character was dead. If I recall, we were serving approximately 10,000 requests every second.

How would we have known, as non-Grey’s Anatomy fans that this was coming? What warning did we have? Fortunately, when the 1am shift arrived and the west coast had their opportunity to freak and panic and start hitting the site, we were expecting the surge.

It goes to show that when doing business with an internet audience, you can make assumptions (or fail to make assumptions) but it’s the things you don’t know that will take you down if you don’t appropriately adjust and grow with each learning opportunity.

As I discussed the sale of eBooks and MP3s with a marketer last night, it was the concept of transparency being not only great but required to make meaningful sales online, I wonder if that knowledge she now knows will help her in her online business.

Be smart, be wise, and learn where you can. It can make the difference in your online business.

Verizon Wireless Bombs on the Blackberry Storm Launch, And I Need to Talk to Them

Quick post here to make a request for contact inside Verizon Wireless. The reasons are simple.

Yesterday, they along with Blackberry manufacturer Research in Motion (RIM) bombed the much-hyped Blackberry Storm launch. Speculations by Boy Genius Report seem legitimate – that Verizon implemented a downgrade on the phone operating system just before rollout causing a significant shortage in supplies. This is a failed launch and there is no legitimate excuse, I’m sorry.

Realistically, I should have received a pre-release Blackberry, but I did not. The reason is two fold. One, I do almost $200 a month in business with Verizon and was quite clear that I have thought about moving to the iPhone on the rival AT&T network.

Secondly, though this blog is certainly not a mobile or mobile-focused blog, it certainly carries plenty of weight in the technology community. At minimum, 50% of the Technorati Top 100 bloggers read Technosailor.com. At minimum. Confirmed. All that Jazz.

I cannot wait for a December 15 back order date, quite literally. I currently am at the end of my 2 year contract with the Blackberry 8830 and am on my 5th replacement unit of that phone. And that phone… is also dying.

So I need your help. I need you to put me in contact with the social media public relations people inside of Verizon Wireless. I need to get a call or an email ASAP – information can be seen by clicking on my name in the byline of this post. I need Verizon Wireless to get me a unit because, let’s be honest, they are available for corporate sales or internal priority designation.

Quite simply, I need to get one or I’ll be heading over to AT&T and purchasing an iPhone. Really.

Blackberry Provides a Mobile Device Too!

Since the iPhone came out a year and a half ago, mobile app development has gone into an iPhone-only mode of development. Mostly. The web interface has made it much more conducive to providing a real rich environment for web applications and now that the iPhone 3G has arrived, apps are being produced left and right.

It’s all great, except Apple still has a minority market share in mobile devices. By mobile device, I am referring to smart phones: iPhone, Treo, Blackberry, etc.

In DC, we have a running joke about the iPhone. In DC the preference for a smartphone is a Blackberry. When I get on the Metro, I look around and everyone is fiddling on their Blackberries.

It’s a matter of utility and practicality.

In San Francisco, no one goes without an iPhone, but in DC iPhones are far more scarce.

Yet, mobile application development seems to trend toward iPhones. While iPhone rich applications are great for the “bling” factor, they represent a small minority of customers in the global market that actually can utilize these interfaces.

In my opinion, developers can work within the limitations imposed by RIM to provide rich Blackberry equivalents to their apps. The Facebook App for Blackberry is a shining example of great Blackberry app that has been developed within the context of the RIM framework.

It can be done. It should be done.

I was pitched an iPhone app by a PR guy yesterday and when I scolded him for having an iPhone app and not a Blackberry app as well, he corrected me and gave me access to their prior-released Blackberry version. After fiddling around with it for 30 mins, I realized it just doesn’t work. Why are companies putting out half-assed products?

The Blackberry Storm is coming out, by all accounts, in the next 2-3 weeks and I’ll be one getting it as soon as it comes out. Why? Because Blackberry users know our product sucks. But, we need it. It’s utility. It’s functional. It’s the hub of our digital lives. The Storm will theoretically change that and that is great.

In the meantime, mobile app developers have to recognize the market share and not take an elitist perspective that they can somehow push users to the sexier platform. Because in DC, purchasers don’t care about sexiness. They care about utility. I imagine this city is not alone in that regard.