More thoughts on the PlayLouder deal

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  • It's probably a good idea to structure this as a flat flee. If customers's aren't being billed per song then they have no direct financial incentive to hide their activity.
  • The quoted price point is £26/month for both DSL service and the ability to share music. Given that BT charges about the same price for DSL alone, that doesn't leave much money on the table for the labels. Is this the end of the $1/song price point?

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£26 is actually pretty expensive for DSL in the UK, but BT are the ex-monopoly and so can charge more than their competitors because people will trust the name.

It's pretty common to get 2Mbps ADSL for £20 or less now, so there is probably room for a decent amount of money for the labels and a bit of profit for PlayLouder.

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