A scheme that would shift the cost of digital music from users to Internet service providers is gaining international support.

"William “Terry” Fisher, a Harvard law professor and director of the Berkman Center for Internet and Society in Cambridge, Massachusetts, is a key advocate of revising the process by which copyright holders get paid. His group is working on a project called the Digital Media Exchange, to be built next year. The Exchange would compensate artists by dividing customers’ subscription fees based on how many times a work is played.

Mr. Fisher said his preference would be for governments to impose a tax on ISPs to collect revenue and make all works available to consumers. He says that China, some countries in Eastern Europe, and Brazil seem as if they might be open to this possibility."

Read the Red Herring Article Here.

155489Sony has announced a new series of flash-based digital music players designed to give the iPod Shuffle a run for the money.  The new Walkman Beans sport a built-in FM tuner and are available in 512 MB and 1 GB versions.  The units play both MP3 and ATRAC3 music files, in addition to supporting WMA and WAV formats. They are compatible with Sony Connect but not the iTunes music store (uurgh).  The players have a pop-up USB jack that connects directly to a PC for charging and transferring music.   Available in October  512 MB for about $130 and 1 GB for about $180. 

Sony NW-E507 colors

In the past, Sony with it’s Walkman brand, dominated the personal electronics market for music.  Today it is Apple and it’s iPod that dominates the market.

Many
Wall Street analysis publicly stated that they didn’t feel Apple could
sustain its growth in the iPod market, but last weeks quarterly results
demonstrated that Apple’s high-water mark may have not been reached.
Apple sold 6.2 million iPods last quarter. Six million! Their revenue hit $3.52 billion up from $2.01 billion the year before, exceeding
predictions and buoying the stock.

 Sony still has serious work to do to consolidate its battling divisions, and integrate its hardware players with
Sony’s Connect Music Service
. With the 50 year old culture of internal one-upmanship instead of teamwork, this is not going to be an overnight affair.

Read the whole story here.

"Already millions of people are subscribing to these podcasts," said Steve Jobs, predicting that an iTunes upgrade would "send it into orbit." Jobs made these comments at D: All Things Digital, hosted by Walt Mossberg from WSJ. The iTunes upgrade, expected to be released in the next few months, will feature a listing of top podcasts. "We can highlight the 20 most popular podcasts and we can highlight the ones that are really great," Jobs added.  Support of podcasting directly by Apple could catapult the nacent audio publishing format into the mainstream.

How will fans purchase music in the future? Will people keep buying tracks for their personal libraries on iTunes or will the subscription model proposed by Napster, Real and others be the ultimate channel of consumption? Should music become a utility? How should the rest of us best position ourselves for the continuing rapid evolution of the distribution models of content?  These are the questions we address in this edition of IRIS Research.