Thursday 19 November 2009

ECommerce Done Bad.

I was recently sent an email from Nokia telling me they’d created an account for me at their Nokia Music site and credited it with £4, which works out at about 5 free tracks at the 79 pence each they charge. So I promptly flagged it for looking at later and forgot all about it.

It’s now a couple of weeks later and I decided to log into this account I never asked for to see what gems I could find, my ultimate goal being to find an old classic album and download the lot for my free £4.

After installing their odd software (which I wouldn’t normally do, but since I will be re-installing the operating system on this machine shortly I’m not too bothered), I managed to browse around their store, but to my disappointment no albums could be found for less than £7.99, and no individual tracks for less than 79 pence.

So basically, CDs which I could got into HMV and buy for £3 will cost me over twice as much, without the physical expense of a tangible product which I could (arguably) format shift onto MP3 anyway.

So I’ve decided to spend my £4, then never return unless they ever decide to give me more free credit, at which point I may repeat the process if I can be bothered. The design of the site itself is not intuitive and it took me just under 5 minutes to work out how to download the tracks I’d selected. If I’m confused, what’s Mr. Average Joe going to do.

Sorry Nokia, but your store deserves to fail on both price and design.

And that brings me onto the second part of my rant – the greed of the music companies.

I used to have some sympathy for the record labels, after all they often spend large amounts of money promoting new groups, and don’t always get it back. But their business model for electronic delivery is just crazy.

When CDs came out we were told how they would be cheaper than Vinyl or cassette as the breakage rate would fall and they would become super cheap to manufacture. This did eventually happen, but only after the percentage ‘reserved’ by the publishers for these breakages was doubled from the previous formats, and only in recent times since imports via the web, and the demand for music has dropped has price followed suit.

Why has demand dropped? I’d guess that there’s just too much choice for other ways to spend our cash now, be that DVDs, video games, or any number of fancy gadgets that simply didn’t exist ten years ago.

I’m wrong of course, it’s actually down to all the pirates out there illegally downloading music for free from drug dealing gangs to make more money. Silly me.

I’d imagine any gang dealing in drugs that makes more money through distributing torrents for free is probably not that big a risk for the DEA. Of course, I understand there needs to be methods for money laundering used by these imaginary gangs, but I always assumed the point of these was using a legitimate business as a front, not another ‘criminal’ activity, after all, what would be gained? How silly I am…

So instead I’ll pay £7.99 for an electronic copy of an album I could get cheaper on CD anywhere else, or pay 79 pence for a single of one track, when I could have four or more tracks on a CD single for £2.

Except I won’t, I’m not that silly after all.

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