Dec 23, 2008 • 1 min read

How permanent is permanent? Subscription models

A review of 2008 subscription music services describes Napster's acquisition by Best Buy and Nokia's Comes With Music, which carries DRM limits on downloaded tracks.

While the 'a-la-carte download stores' capitalised on the majors finally seeing sense on the futility of DRM, much of our reporting time was spent analysing totally different digital music offers based around ad-funded or subscription models.

In the case of the latter, there was a change in direction. Napster is really the only digital music service left that operates the traditional "monthly subscription to access all music" model that was once so common in the digital music market place. And, according to some gossipers, they are only just managing to keep afloat, though the acquisition of the service by US retailer Best Buy in September may help turn around Napster's fortunes - including here in the UK where Best Buy plans to launch stores in 2009.

But the subscription model garnering more interest this year (albeit not all positive) was that being pushed by Nokia with their long-time-in-development Comes With Music proposition, launched in the UK in October. This offers unlimited access to music for a year for a one off subscription fee that is bundled into the cost of a phone. Crucially, any downloads made during the year are permanent - unlike Napster where access to tunes stops if subscription lapses. Under the Nokia system you can download an unlimited number of tracks and keep them forever.

Too good to be true? Yes, it probably is. The catch is our old friend digital rights management, which may have been axed in the a la carte download space, but which could make a comeback through fledgling subscription services. Tunes obtained via Comes With Music will only work on the Nokia phone or PC onto which they are downloaded, so when the hardware reaches retirement age (which is, after all, very quickly these days) the "permanent" tracks are lost. It's a catch that has caused many to be critical of Comes With Music, though variations on the theme, including competitor Ericsson's rival service and the PC-based Datz.com, are very interesting and this could, as yet, be a sustainable and popular new part of the digital music market. Time will tell.

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