Edgar Bronfman Jr., CEO of Warner Music Group (WMG) chastised the cell phone industry for their horrible music service for consumers. He said that if things didn't improve quickly that they would miss out on being able to compete with newer rivals like Apple (AAPL).
Statistically he said that out of the millions of music phones throughout the world, less than 9 percent of the users buy music over the air with them.
The three reasons he gives are enlightening and an important reminder to all online marketers. He said the major reason for such poor performance are it is too expensive, complicated and slow. These are of course the three major obstacles that must be overcome with any online marketing.
He added that, "We need to make it easy, affordable and quick to get music on mobile phones. Until we achieve this goal, we will be leaving billions of dollars on the table."
Bronfman said that the average number of clicks it takes for the average user to buy a ringtone is 20, and that depends upon who the carrier is. Another huge mistake he said was that ringtones, album art, full-track songs and music videos are all sold in separate virtual stores.
Referring to Apple's upcoming iPhone, Bronfman said, "Apple has raised the bar in terms of what users expect even before the product has been released. While this presents a challenge, ultimately I think it will be positive for the industry because it's getting people excited about music phone devices. Now it's up to providers and manufacturers to fill the emerging demand."
Responding to Steve Jobs call for the end of DRM, Bronfman wouldn't go along with that, although he did emphasize the importance of interoperability between devices.
The problem with that is that it's all talk. How could anyone know if consumers will be more satified with their music when interoperability is offered until it's offered? Until then there's going to be a continued dissatisfaction with the music industry and experience. Adding the horrible customer experiences happening today is another reason the music industry is self-destructing.
Comment Preview