Music? To be free or not to be free?

I randomly selected Michael Yang's blog and read the post about iTunes and the cost of acquiring mp3s online. I agree with most of what Michael says, but have some additional points that I would like to touch upon.

I was once an avid downloader of illegal mp3s. However, when my friend was fined $3,000 for illegally downloading, I figured the benefit of hearing new jams was not worth hearing my parents tirelessly yell at me for my insolence and irresponsibility. I would much rather prefer silence in that instance. Ever since I stopped downloading music, I have a new appreciation for music. I value it so much more and have a lot more sympathy for music artists. I understand and support rightfully-purchased music. In my opinion, music should not be free. However, I can see Michael's point of view as well. Growing up with free music makes it very hard as a consumer to pay $1 per song.

Where I have some differences in view is how music providers should handle the issue. I agree that it would be nice if iTunes offered more discounts, but it would be extremely difficult for them to do so if they want to turn profits. Apple adds additional benefits to their user such as album art cover, seamless synchronization to your iPhone or iPod, and complete organization in one module without need to convert media files to proper file extensions, whereas competitors who offer cheaper downloads do not offer these services or experiences. Therefore, the price Apple charges is a premium for the experience they are providing. Apple's model with iTunes has obviously proven successful because thousands of people around the world use it to purchase their music. In fact, from 2004 to 2006, legal downloads went from 0-6% of revenues for record companies. In 2005, digital music sales tripled to $1.1 billion.

Although I disagree with the idea of discounts, one idea of Michael's that I really liked was the buy-1-get-1 promo. I think Michael's intent was to get 2 popular songs for the price of 1, but I think this would potentially hurt Apple's business. One way Apple could still provide this offering is to offer 1 free song from a lesser-known, up-and-coming artist that has similar sounds and style to the artist being downloaded. With their new Genius technology, this would be a great way for Apple to capitalize on their music genome, please their customer by providing them more offerings, while simultaneously not hurting their business. Additionally, there is the side benefit of promoting the music industry in general. The artist of the free download would be receiving free exposure and good music will continue to permeate through society. This free song option could be optional for the consumer, but I think many avid music listeners would enjoy this type of service. Many music listeners enjoy hearing new artists to add to their playlists, and this would be a great way for them to do so without hurting their wallets.

So while Michael makes an excellent point that the $1/song seems like a lot of money, I honestly believe that music providers can dodge the price issue by focusing on customer experience. By continually adding value and services to music downloads, Apple can and should continue to charge $1/song. Musical artists deserve their hard-earned money.

I think that people are beginning to change their mentality about downloading music. Many people are switching over and starting to pay for their music because 1) they see value in it, 2) they realize it's cheaper than a lot of other things they purchase, 3) they are afraid of getting caught, or 4) they just feel plain guilty for their unethical actions. With all these things combined, I do not think digital music providers should worry too much about download prices. Historical trends have already shown that people are more inclined to purchase music than they were in the past and I believe this trend will continue into the future. By continually adding value to digital music, music providers will continue to see more and more people legally downloading music.

While the stance I take seems largely from the company's perspective or interest, I see a greater alignment in the mentality of consumer and company. Both are increasingly concerned about ethics and the protection of the music industry, so I believe that this common purpose in mind will allow companies and customers alike to benefit. Companies can continue to charge what they do, but offer more services. With added services for the same price, customers will be getting more bang for their buck. In the long run, I see it as an advantage to both parties.

Phone Wars – G1 and iPhone Stir Up a Storm

1. Introduction
   
   1. Phone manufacturers of the Blackberry Storm, Google G1, and Apple iPhone must be very cognizant of consumer insights because they battling one another while trying to cater to very distinct market segments.
      
      1. History of cell phones
         
      2. General description of each phone
         
      3. Different market segments targeted
         
         1. Business-focused – Blackberry Storm
            
         2. Technology-focused – Google G1
            
         3. Innovation/trend-focused – Apple iPhone
            
      4. Needs of different markets and how they are addressed
         
      5. Ability to bridge the gap between corporate and personal user
         
      6. Brand loyalties
         
2. Body
   
   1. Through time, cell phones have adapted to meet the ever changing needs of a constantly "wired" consumer.
      
      1. Cell phones started as devices to make a call while away from home. Address books were not available and size was not an issue.
         
      2. With more people realizing the value of the convenience provided by a cell phone coupled with advanced technology, smaller sizes and new features like phone books, datebooks, and cameras were added.
         
      3. The Blackberry was the first to revolutionize the cell phone for the corporate user. Email and calendars were primary functions that differentiated this phone from others. The Smartphone was born.
         
      4. Research in Motion (the creator of the Blackberry), decided to create this corporate-focused phone to the regular cell phone user with the Blackberry Pearl.
         
      5. Since then, features that were initially intended for the corporate user have entered the phones for the regular user.
         
      6. Apple copied many features of Blackberry but tailored their phone for a mass personal-use market.
         
      7. Google G1 later entered the market for the more technology-adept cell phone user.
         
   2. Each phone has similar, yet distinct features.
      
      1. Blackberry Storm is a corporate-style phone with the daily consumer in mind.
         
         1. Blackberry email and calendar are unique functions that many corporate users are already familiar with.
            
         2. Modeled after the iPhone, touch-screen functions make the Storm unlike any other Blackberry, marrying corporate and consumer functionalities.
            
         3. Touch-screen indention allows users to have a responsive feedback when inputting data.
            
      2. On top of corporate-style functions, Apple iPhone introduces customizability and entertainment value for the regular consumer.
         
         1. Users have access to similar datebook and calendar functions of Blackberrys.
            
         2. The iPhone adds additional entertainment and customizability features.
            
         3. The iPhone is the first to introduce downloadable applications to modify the product.
            
         4. iPhone introduces innovative touch-screen function to appeal to mass market.
            
      3. Google G1 has many corporate features but further increases customizability with their open-source platform, Android.
         
         1. G1 users have access to Gmail, Google calendar, Google maps on their device.
            
         2. Android is a completely open-source platform, taking customizability to the maximum level. Users can view and edit code to their liking to modify the operation of their mobile device.
            
   3. There is a clear separation in the cell phone market.
      
      1. Research in Motion (RIM) has always focused on corporate users.
         
         1. Because Blackberry was the first to allow users to sync with their contacts, emails, and calendars, corporations have typically signed contracts with RIM.
            
         2. According to a corporate IT survey, nearly 75% of corporations say they use RIM products as their company's Smartphone.
            
      2. Apple entered to cater more to the personal cell phone user.
         
         1. The iPhone brought many features that RIM brought to corporate users to the general user in a more user-friendly interface.
            
         2. Touch screen operability, sleek design, and general innovativeness that Apple is known for were added features while still including corporate phone functions for the general user.
            
      3. Google focuses more on the high-tech consumer who desires customization.
         
         1. While they also focused on the general consumer, they designed their phone to a more niche market – the high-tech user.
            
         2. With the Android operating system that the G1 runs on, developers have unlimited access to applications, whereas there are more restrictions for iPhone application developers.
            
         3. The open-source model for the G1 appeals to high-tech individuals who are attracted to the ability to use and share any application created by any user.
            
         4. The open-source platform also allows the greatest amount of customizability, as developers can freely view and make changes to existing code.
            
   4. Needs of different markets and how they are addressed
      
      1. Corporate users have specific needs for their communication devices.
         
         1. The ability to streamline communication is extremely important, which is achieved through the high usage rate of corporations on the Blackberry network. There are no communication hiccups due to the seamless usage of Blackberrys in companies.
            
         2. Due to privacy issues, RIM allows corporations to disable the camera.
            
         3. Enterprise mobility requires protocol and GRC (Governance, Risk, and Compliance.     
            
            1. The current inability to customize your Blackberry with an app store like that of the iPhone and G1 increases the control a corporation has on each user's mobile device.
               
            2. IT managers can purchase applications through FoneWare that are specific to a company's needs, but each end user cannot individually customize their phone.
               
         4. Due to high levels of travel of many professionals, the ability to create and modify documents on the go is extremely important.
            
            1. The Storm allows typing/editing of documents in landscape mode while other phones do not.
               
            2. This increases legibility of a document and ease of modification due to increased viewing space in landscape mode.
               
      2. Many regular end users desire innovation, trendiness, and customization.
         
         1. The iPhone, like many other Apple products, was revolutionary with its fully touch-screen capability.
            
         2. Because regular end users have no restrictions bound by corporate protocol, the ability to play and download games, stream video and music, are attractive and valuable to the segment.
            
      3. High-tech users desire the ability to openly share their programs and completely customize their products.
         
         1. The Android operating system has no limitations on which applications can be released to the general public, unlike applications for the iPhone, which must be tested and approved before release.
            
         2. The open source model of the Android operating system, which is what the G1 runs on, allows high-tech users to have almost complete control of the way their phone looks and operates.
            
   5. While the G1 and iPhone have tried to bridge the gap between corporate user and regular user, the Storm attempts to close that gap even more.
      
      1. The iPhone and G1 took many of the features common to the first Blackberrys and integrated them into their mobile devices. Additional features were added to the "corporate features", making it even friendlier to the regular user.
         
      2. However, corporations already have a buy-in with the Blackberry network, making it difficult and unattractive for them to switch to iPhones or G1s.
         
         1. The Blackberry Storm has all the same features that the corporate user is already familiar with and additional consumer features like touch-screen capabilities and music and video accessibility.
            
         2. Many regard the Storm as the iPhone for the corporate user.
            
   6. Brand loyalties pay a large part in the user's selection.
      
      1. Blackberry loyalists are likely to have grown accustomed to the interface of Blackberry products.
         
      2. Apple users appreciate the sleekness of their products and constant innovations.
         
      3. Google users are loyal to Google products, and the G1 has a network of Google products (Gmail, Google calendar, Google maps, Google Search) preloaded on the device.
         
      4. While brand loyalties are extremely in the selection process of a phone, being able to cater to a consumer's needs are equally important. If one phone is better at addressing the specific needs of a consumer, brand loyalty can be overridden.
         
3. Conclusion
   
   1. To fully capture cell phone users across segments, phone manufacturers need to cater to the distinct needs of both corporate users and regular consumers in one product.
      
4. What I have learned from this study
   
   1. It is extremely difficult to successfully meet the needs of multiple segments with just one product.
      
   2. No one phone has been able to fully capture both the corporate and consumer market.
   
   
   
   I'm not quite sure whether or not I should include a section about brand loyalties in my paper because I don't know if I could really tie this into consumer insights.  What do you think?