For months, we've had a new, modern version of Name That Tune. It's, "Name Which Company's Getting Into Music Downloads Next." Right, that's a mouthful, but you get the point. The latest company to test the concept is Internet powerhouse eBay (Nasdaq: EBAY). Is this the company that could turn up the bass and rock the industry?
eBay's six-month test is hardly surprising, given word from current musical powerhouse Apple (Nasdaq: AAPL), which, just days ago, said that the 100 millionth song had been downloaded through its iTunes site.
The number of corporate heavyweights from all walks of life that want a piece of music-download mania is staggering. It's not only musically inclined companies like Sony (NYSE: SNE) and Roxio (Nasdaq: ROXI), but also consumer companies like Pepsi (NYSE: PEP), McDonald's (Nasdaq: MCD), and Starbucks (Nasdaq: SBUX). For many, it's become clear that music is a portable -- and therefore perfect -- promotional tool for their wares.
eBay's previous caution in this area has been widely noted today, and it's not surprising given the possible snags regarding copyrighted material. It also warned users against fraudulent pop-ups or spam advertising its downloads.
Of course eBay is a force to be reckoned with. It has made it possible for customers from all walks of life to buy and sell items that run the gamut from run-of-the-mill to necessary to hard-to-find collectibles, all for a "deal" via virtual yard sale.
However, while eBay definitely has masses on its side, whether it's truly tuned into the musical audience may be another story. eBay's major rep is for hunting down obscure collectibles, like maybe "Spaced Out: The Very Best of Leonard Nimoy and William Shatner" on vinyl. Sure, it can peddle downloads, but I'm uncertain that it would be any more of a runaway success than any other big consumer name that gets into the ring.
The Internet retailer that truly has the music cred, of course, is Amazon.com (Nasdaq: AMZN). It doesn't just sell CDs (with musical clips for most of its catalog as tantalizing samples, another way it trumps old-fashioned music stores). It has a great track record of providing indie and obscure music in addition to top sellers, a complex catalog of customer reviews, and on-target recommendations of similar music to whatever you're browsing, just to name a few of the value adds it provides.
In fact -- let's face it -- Amazon knows what you want. If Amazon starts selling digital downloads -- and now it seems only a matter of time -- get ready for a possible major shift in musical muscle.
What other companies have jumped on the music-downloading bandwagon? Here's some Fool coverage on some of the other big names getting into the biz:
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Alyce Lomax does not own shares of any of the companies mentioned.
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