Telephony 2.0

Ask anyone: music subscriptions are a really crappy way to listen to music. That is, until Apple pronounces that it is cool — as it is rumored (again) to be considering.

The irony, of course, is thick in that opening paragraph. But there’s some truth in it too. Myself, I’m a big believer in music subs: I used Rhapsody until PlaysForSure failed to work; I was a member of a now-defunct P2P music sharing site that was like a dream come true (before it was shut down); and am now — believe it or not — an all-you-can-eat Zune sub, with a — believe-it-or-not — BROWN 30GB Zune I bought on Woot.com for just $79!

But enough about me. The truth is, even though music subscriptions are a great way to sample a wide array of music, very few users take advantage of it. Why? The iPod. Most people use iPods and Apple doesn’t offer a subscription service.

So what will happen if/when Apple does? My guess is that it will prove a big success, changing the digital music game from downloads to subscriptions. And chances are that the iPod/iTunes pairing will be the main way music buyers buy subscriptions. A possible close second: Nokia, which began experimenting with its Comes With Music Service.

So where are the operators? If device makers like Apple and Nokia can prove the market, there may be a chance for service providers to add mobile music services to their monthly bills. Verizon Wireless, in fact, has experimented with handing its device music service over to Rhapsody, albeit very quietly.
Or it may be too late. Which would be a shame, because with a little bit of foresight, it could — should — have been operators, and not Apple, to benefit from the ARPU-fattening possibilities of subscription-based music.

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