Published on July 18, 2007
Magnatune: an “open music” experiment
or, an attempt to apply the “Linux Lessons” to the music business.
Deﬁne “Open Source” ?
10 part deﬁnition from http://opensource.org
1. Free Redistribution The license shall not restrict any party from selling or giving away the software as a component of an aggregate software distribution containing programs from several different sources. The license shall not require a royalty or other fee for such sale.
“Free as in beer” vs “Free as in Freedom”
2. Source Code The program must include source code, and must allow distribution in source code as well as compiled form
MIDI, Scores, Samples & multitracks, all “compile” into a song.
3. Derived Works The license must allow modiﬁcations and derived works, and must allow them to be distributed under the same terms as the license of the original software.
The Creative Commons “by-nc-sa” license.
The Hairball: multiple sources of similar but incompatible licenses.
4. Integrity of The Author's Source Code The license must explicitly permit distribution of software built from modiﬁed source code. The license may require derived works to carry a different name or version number from the original software.
5. No Discrimination Against Persons or Groups The license must not discriminate against any person or group of persons
6. No Discrimination Against Fields of Endeavor The license must not restrict anyone from making use of the program in a speciﬁc ﬁeld of endeavor. For example, it may not restrict the program from being used in a business, or from being used for genetic research.
Multiple licensing: free use vs uses for money.
7. Distribution of License The rights attached to the program must apply to all to whom the program is redistributed without the need for execution of an additional license by those parties.
8. License Must Not Be Speciﬁc to a Product The rights attached to the program must not depend on the program's being part of a particular software distribution.
9. License Must Not Restrict Other Software The license must not place restrictions on other software that is distributed along with the licensed software. For example, the license must not insist that all other programs distributed on the same medium must be open-source software.
10. License Must Be Technology-Neutral No provision of the license may be predicated on any individual technology or style of interface.
Magnatune is... Next-generation record label Combines B2C and B2B B2C: downloads and CDs B2B: music licensing for commercial use
Main Consumer Beneﬁts Selected music Full Preview Fair price High quality product
Selected Music Consistent quality Hard-to-ﬁnd genres Manageable size
Preview Listen to everything for free Never-ending genre mixes High audio quality MP3 streams
Fair Price Pay what you want 50% for the musician No registration
Quality Product MP3 and CD quality downloads Allows later re-download No DRM
Leveraging consumer anger at the Music Industry Limited musical diversity, poor quality CD prices too high Ripped-off musicians speaking out DRM Symptom: using P2P is acting as a just-cause revolutionary
How music demand is typically created Traditional command- and-control marketing Grass-roots uprising quot;Customers also boughtquot; Try-before-you-buy (Magnatune’s focus)
Try-before-you-buy: the old ways Radio MTV Concerts Mix tapes from friends
Try-before-you-buy: many new ways 30-second snippets (iTunes/Amazon) quot;Conceptquot; compilations (quot;Buddha Barquot;) Recommendation web sites P2P used for previewing Mix CDs from friends Social MP3 sharing DJ culture & raves Internet radio
Music Biz isn't just CDs Most music heard is not at home, but in a business/commercial setting Consumer shopping experience is increasingly staged, with music in a key role Music is branding TV commercials make hits Tie-ins are increasing Music biz becoming like book publishing
Magnatune & Red Hat Compared
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