Open music model

The open music model is an economic and technological framework for the recording industry based on research conducted at the Massachusetts Institute of Technology.wikipedia
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Digital distribution

digital downloaddigitaldigitally
It predicts that the playback of prerecorded music will be regarded as a service rather than as individually sold products, and that the only system for the digital distribution of music that will be viable against piracy is a subscription-based system supporting file sharing and free of digital rights management.
Online distribution also opens the door to new business models (e.g., the Open Music Model).

Napster (streaming music service)

RhapsodyNapsterRhapsody.com
In 2010, Rhapsody announced a download ability for their subscribers using iPhones.
Rhapsody was the first streaming on-demand music subscription service to offer unlimited access to a large library of digital music for a flat monthly fee, a concept advocated by business theories such as the Open Music Model.

Spotify

Spotify.comPlay.Spotify.comSpotify Velocity
In 2011, Spotify introduced a $5 per month premium subscription in the United States with digital rights management.
Spotify offers an unlimited subscription package, close to the Open Music Model (OMM)—estimated economic equilibrium—for the recording industry.

Digital rights management

DRMDRM-freedigital rights management (DRM)
It predicts that the playback of prerecorded music will be regarded as a service rather than as individually sold products, and that the only system for the digital distribution of music that will be viable against piracy is a subscription-based system supporting file sharing and free of digital rights management. In 2011, Spotify introduced a $5 per month premium subscription in the United States with digital rights management. In 2005, Yahoo! Music was launched at $5 per month with digital rights management.
Open Music Model

Yahoo! Music

Yahoo! Music UKYahoo MusicYahoo! Music Australia
In 2005, Yahoo! Music was launched at $5 per month with digital rights management.
In 2005, Yahoo Music became the first major online music service to provide a $5 per month unlimited download service similar to the Open Music Model, albeit with digital rights management, called Yahoo Music Unlimited.

Music industry

Musicmusic businessrecording industry
The open music model is an economic and technological framework for the recording industry based on research conducted at the Massachusetts Institute of Technology.
The survey was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based.

Timeline of file sharing

file sharing
File sharing timeline
March – The Open Music Model is published, advocating a business model for the recording industry based on file sharing

File sharing

file-sharingfilesharingsharing
It predicts that the playback of prerecorded music will be regarded as a service rather than as individually sold products, and that the only system for the digital distribution of music that will be viable against piracy is a subscription-based system supporting file sharing and free of digital rights management.
Open Music Model

Fan-funded music

fan-fundedfan fundingfan funded
Fan-funded music
Open Music Model

Massachusetts Institute of Technology

MITMassachusetts Institute of Technology (MIT)M.I.T.
The open music model is an economic and technological framework for the recording industry based on research conducted at the Massachusetts Institute of Technology.

United States dollar

$US$USD
The research also indicated that US$9 per month for unlimited use would be the market clearing price at that time, but recommended $5 per month as the long-term optimal price.

Market clearing

market-clearingclearmarket clears
The research also indicated that US$9 per month for unlimited use would be the market clearing price at that time, but recommended $5 per month as the long-term optimal price.

Comparison of on-demand music streaming services

music streaming servicemusic streamingmusic streaming services
Since its creation in 2002, a number of its principles have been adopted throughout the recording industry, and it has been cited as the basis for the business model of many music subscription services.

Necessity and sufficiency

necessary conditionnecessary and sufficient conditionsufficient condition
The model asserts that there are five necessary requirements for a viable commercial music digital distribution network:

Napster

Napster LiveFleemsternappster.com
Insofar as the interest for a particular piece of digital property is high, and the risk of acquiring the good via illegitimate means is low, people will naturally flock towards third-party services such as Napster and Morpheus (more recently, Bittorrent and The Pirate Bay).

BitTorrent

torrentBitTorrent protocoltorrents
Insofar as the interest for a particular piece of digital property is high, and the risk of acquiring the good via illegitimate means is low, people will naturally flock towards third-party services such as Napster and Morpheus (more recently, Bittorrent and The Pirate Bay).

The Pirate Bay

Pirate Bayphysibleretaliatory
Insofar as the interest for a particular piece of digital property is high, and the risk of acquiring the good via illegitimate means is low, people will naturally flock towards third-party services such as Napster and Morpheus (more recently, Bittorrent and The Pirate Bay).

Trade group efforts against file sharing

anti-copyright-infringement litigationapproximately 13,000 lawsuitscopyright infringement lawsuits
Supporters argued that it offered a superior alternative to the current law-enforcement based methods used by the recording industry.

Steve Jobs

JobsdeathSteven Jobs
The abolition of digital rights management represented a major shift for the industry. In 2007, Steve Jobs, CEO of Apple, published a letter calling for an end to DRM in music. A few months later, Amazon.com launched a store single individual DRM-free mp3's. One year later, iTunes Store abolished DRM on most of its individual tracks.

Apple Inc.

AppleApple ComputerApple Computer, Inc.
The abolition of digital rights management represented a major shift for the industry. In 2007, Steve Jobs, CEO of Apple, published a letter calling for an end to DRM in music. A few months later, Amazon.com launched a store single individual DRM-free mp3's. One year later, iTunes Store abolished DRM on most of its individual tracks.

Amazon (company)

AmazonAmazon.comAmazon.co.uk
The abolition of digital rights management represented a major shift for the industry. In 2007, Steve Jobs, CEO of Apple, published a letter calling for an end to DRM in music. A few months later, Amazon.com launched a store single individual DRM-free mp3's. One year later, iTunes Store abolished DRM on most of its individual tracks.

ITunes Store

iTunesiTunes Music StoreiTunes U
Open payment was relatively straightforward to implement, and the iTunes Store offered gift cards, which could be purchased with cash, from its launch in 2003.

IPhone

iPhonesiPhone appApple iPhone
In 2010, Rhapsody announced a download ability for their subscribers using iPhones.

ICloud

iTunes MatchiCloud DriveiWork for iCloud
In 2011, Apple launched its iTunes Match service with a subscription model, supporting file-sharing between a user's own devices. However, the subscription price did not include the cost of acquiring content, which would still have to be purchased on a per track basis from the iTunes Store.