Gaps in the market, in the open spaces amidst walled gardens

You may have figured out that I was born and raised in Calcutta. Lived there from 1957 to 1980. For much of that time, the roads there were less than perfect. So much so we used to joke that, when confronted with a particularly poor road, the smart way to drive was to stay in the potholes, avoiding the little bits of road that loomed up every now and then.

Nature abhors a vacuum.

Which is why, when we have walled-garden approaches to digital music sales, people find a way to operate in the open spaces. Take a look at this article in today’s Wired News, where Josh Madell, one of the co-owners of Other Music, gets interviewed by Eliot Van Buskirk.

Here’s an excerpt from the interview:

Madell: We will be selling high-quality files without DRM copy protection (our music is encoded at 320 Kbps rather than 192, the iTunes model, so the sound will be much better). All our pricing is not set yet, but we will definitely have to be a little more expensive than iTunes — probably $10.99 per album rather than $9.99. I hope we can more than make up for the price with our selection, service, knowledge, features and, of course, the quality files. As for the label deals, this business works on percentages; you split revenue with the label for sales, and typically labels make 65 to 70 percent of the retail price.

If you want to stay informed of their plans, here’s the link. In case you missed it, an earlier story about MP3s and DRM by the same author is also worth a read. Link.

And if you have no idea what kind of store Other Music is, then take a look at this video.

Tell me what you come here for, boy

Sean’s having trouble finding vendors that try to Keep the Customer Satisfied; in fact he seems to be doing better at finding Deputy Sheriffs, according to his recent post.

Deputy Sheriff said to me
Tell me what you come here for, boy.
You better get your bags and flee.
You’re in trouble boy,
And now you’re heading into more.

Sean’s example of CNBC.com and its archives policy made me wonder about something. Why would anyone do something like that? Why would anyone take something that was already made available for multiple devices and then pay to reduce the market opportunity?

Three possibilities:

  • One, incompetence. They didn’t know they were doing the restricting.
  • Two, greed. They were paid to use a walled garden.
  • Three, line-of-least-resistance. They could not find a way of implementing their DRM without restricting choice further.

Even the optimist in me thinks it is possibility 3. After all, we live in a world where people can come up with rank stupidities such as Region Coding.