The Revenue Zero Music Media Model

@kevinkclee talked about the rise of digital music, and that owning, storing, and listening costs are heading towards zero, thus killing such as a revenue stream. Obviously, those with a vested interest are not going to want to see that happen, but I think its inevitable.

In part, being I just read the full transcript of the Colgan 3407 airplane crash, and its something Captain Renslow brought up during their taxi time. He stated,  ”US Domestic laws are dictated by social acceptance.” Specifically he was referring to smoking legislation, ie its become socially unacceptable, and as such laws now prohibit it a great deal. I think something similar is entirely possible in the music domain. Ie, many people see nothing wrong with piracy, and thats either going to drop margins to nill, or to zero.

One possibility is the Iphone software model, where in market driven prices are reduced so much, they reach the sub impulse domain. In such a model, prices become so low, that its easier to buy then pirate. At such a point, a revenue stream would remain, albeit a tiny one, in contrast with today, much less the past. Another possibility is a change in law, as to allow the practice of piracy as currently defined. Either way, revenue based upon media unit sales is going to continue to shrink. Thus, either a totally new method of generating revenue off media will come to be, or alternative  revenue streams will dominate.

Being so much of this is already rolling, I dont see it stopping anytime soon. There is just too much social pressure for things not to return to the way they were, no matter the amount of lobbyist pressure.

Tags: business model