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Get ready to rent your digital music
Online song shops smell blood in subscription market...

By Jo Best

Published: Thursday 02 December 2004

While renting entertainment is more often associated with going down to the video shop, if online song sellers have their way, we could all be paying to rent our digital music - and 'give it back' when we get bored of the service.

Per download models, such as iTunes' 79p per track model, could be for the chop, while subscription services, such as Napster's £9.95 per month 'all-you-can-eat' offering, could be the way forward for online music.

While the idea of renting music might be strange, it's a more popular one with the operators because it brings in a higher return: typically, per download models bring in a matter of pence for the operator.

However, despite the fact that when a music fan lets a music subscription lapse they lose access to all the tunes they used to access via that particular service - which doesn't happen with a per download model - subscriptions are gaining momentum, according to analyst house JupiterResearch.

JupiterResearch found that while 16 per cent of online adults in the US wanted a 99 cent single download, 17 per cent were interested in a subscription.

However, subscription sellers might end up doing it for the kids. The research found that nearly a third of young adults - 18-24 years old - would consider a subscription service and 19 per cent of teens aged 13 to 17 would be happy to rent their music.

A report from fellow analyst house Informa Media still sees problems in the subscription model, predicting that if the idea of renting music from a supplier is to take off, retailers will have to alter the mindsets of their customers.

"However, doubts and questions about the viability of subscription services remain... The current raft of subscription download services on offer require subscribers to remain loyal to the service as downloads that have not been purchased separately cease to be accessible once a subscription lapses. This clearly contrasts with the long-established traditions of music buying," the report said.