It's Like iTunes Meets ...something...
Back from SXSW and finally getting grounded, I can't help but think of a few of the new startup companies I met which kept comparing themselves to the idea of established companies getting together.
• iTunes meets MySpace
• MySpace meets Amazon
• Amazon meets Flickr
While it's natural to sell yourself in comparison to an idea people already know, especially one as unexplainably rabid as MySpace, the real flaw in the logic is that you're not going to be able to out do either of them, so how are you going to be able to do both better?
MySpace can, and probably will, build a music download store, if they haven't already (oh wait, they're a record label now?) and iTunes should definately add some social networking to their mix.
But what I really keep thinking about are the real fundamental business models behind these companies. Amazon and iTunes sell music to people, directly. MySpace sells advertising to companies who want to reach their visitors. Besides Taxes, there are essentially only two kinds of revenue models which exist in our world: 1) Direct sale of a product or service or 2) an ad-supported free content offering (or doing both, think Basic Cable)
Everything else is bubble-talk.
While we have been looking at implementing new "social" types of features to the JamBase mix (see Friends & Groups), I still have to remember that these features aren't the be-all end-all of our business. They are ways to support and grow our pre-existing model, and help connect people with each other so they can recommend and discover music in new and interesting ways.
Of course if your goal isn't to have a business and build something for the fun hobby of it, I commend and respect you completely. For those of us who have made our life's work out of our passions, there's a challenge in the art of building something for the love of it and needing to also pay the bills so you can focus on what it can become.
If you're bringing people together well, and providing a valuable service for them to rely upon while you do it, then chances are you will be able to overcome the myths of mash-ups and dreams of AdSense riches and we can all avoid Bubble 2.0.
• iTunes meets MySpace
• MySpace meets Amazon
• Amazon meets Flickr
While it's natural to sell yourself in comparison to an idea people already know, especially one as unexplainably rabid as MySpace, the real flaw in the logic is that you're not going to be able to out do either of them, so how are you going to be able to do both better?
MySpace can, and probably will, build a music download store, if they haven't already (oh wait, they're a record label now?) and iTunes should definately add some social networking to their mix.
But what I really keep thinking about are the real fundamental business models behind these companies. Amazon and iTunes sell music to people, directly. MySpace sells advertising to companies who want to reach their visitors. Besides Taxes, there are essentially only two kinds of revenue models which exist in our world: 1) Direct sale of a product or service or 2) an ad-supported free content offering (or doing both, think Basic Cable)
Everything else is bubble-talk.
While we have been looking at implementing new "social" types of features to the JamBase mix (see Friends & Groups), I still have to remember that these features aren't the be-all end-all of our business. They are ways to support and grow our pre-existing model, and help connect people with each other so they can recommend and discover music in new and interesting ways.
Of course if your goal isn't to have a business and build something for the fun hobby of it, I commend and respect you completely. For those of us who have made our life's work out of our passions, there's a challenge in the art of building something for the love of it and needing to also pay the bills so you can focus on what it can become.
If you're bringing people together well, and providing a valuable service for them to rely upon while you do it, then chances are you will be able to overcome the myths of mash-ups and dreams of AdSense riches and we can all avoid Bubble 2.0.
posted by Andy at
10:13 PM
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