Thursday, August 13, 2009

DiGi's unlimited offer...

WAS quite impressed with DiGi's latest offering, that is by offering unlimited music download for a small fee.

Now, for just RM5 a month, DiGi users can all the music they want, be it 1,000 songs, be it 10,000 songs, as long as you have the space.

The service is available for both prepaid and postpaid DiGi users.

During the press conference, the company was tight-lipped on its business model or revenue sharing arrangement with the recording companies. In the past, the model should be pretty straight forward, each song a customer downloads, DiGi and record labels will get a portion of the revenue.

Now, by allowing users unlimited download for RM5, how are they going to split the money?

My gut feel is, they will share the revenue for the downloads of "DRM-Free songs", DRM-Free songs are songs that can be transferred to third party. (A DRM format type of songs are not transferable, something like those songs you transferred to your iPods, you cant transfer the songs from the ipod to your laptop)

DiGi is offering users up to 5 DRM-Free songs a month. This means, they can download say, 1000 DRM songs, and 5 DRM-free songs.

Since DRM songs are not transferable, i guess the recording labels are not really at a huge lost even if the users download its entire library of DRM songs.

So, technically, users are paying RM5 for 5 DRM-free songs, and revenue sharing only happens when a DRM-free song is downloaded.

For additional info:
http://www.btimes.com.my/Current_News/BTIMES/articles/digim12/Article/

10 Comments:

harmdone7 said...

Hey, when will i see something on Tune Talk launch here...:-) Did you get a nice number?

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