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Apple Triples the Fun

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One of the more annoying aspects of Apple's (Nasdaq: AAPL  ) iTunes Music Store -- the short 30-second snippets of songs available for purchase -- is about to get a little more bearable.

According to MacRumors.com and the Symphonic Distribution blog, Apple is advising record labels that it's about to begin offering 90-second clips of all songs longer than 150 seconds. 

I'm not sure where the trend of offering brief samples began. I remember Amazon.com (Nasdaq: AMZN  ) doing so for CDs, long before Apple even launched iTunes. However, this was before digital distribution or the sale of tracks on a piecemeal basis. Offering potential buyers a taste of what an entire album's tracks sounded like helped ease any fears that an artist would pad a release with iffy songs.

Samples -- even 90 second clips, I'm afraid -- are stupid. I may be dating myself, but I remember the consumer-friendly vinyl shops. They had no problem laying the needle down and letting you hear entire songs if the store wasn't busy. Consumers and clerks alike were music fans, and the passion was contagious.

I've never gotten that feeling from iTunes. Its 30-second clips are like a food court employee handing out samples on toothpicks, as if I'd try to run away with the tray. The 90-second streams will be better, but they're still an incomplete experience.

The labels and Apple do know that I can just go to Google's (Nasdaq: GOOG  ) YouTube and likely stream the entire song as a video. Why hold back? 

Maybe this is why Ping has gotten off to such a rocky start. For all of Apple's gloss and polish, Ping feels like a corporate site where short clips and "Buy" buttons rule, and little actual social discourse takes place.

The labels can't be as protective as they used to be. Digital music sales are falling sequentially at Warner Music Group (NYSE: WMG  ) , and the same story's probably playing out at the other major labels, which don't break down their digital performance metrics.

As the undisputed champ in both digital music distribution and portable media players, everyone turns to Apple. If the industry is slipping, maybe Apple isn't doing all that it can to promote music.

This may be the catalyst behind the longer samples. It's certainly cheaper to stream these days, thanks to competitive prices among content-delivery networks. Apple may be trying to be careful; it acquired Lala nearly a year ago, fueling rumors that it would co-opt that premium music-streaming service for its own.

I can't see an extra 60 seconds of sampled music helping turn digital music sales around. Can you? We've dismissed declining iPod sales in recent quarters, because plenty of other iTunes-tethered devices are thriving. However, the digital music industry is finally in a rut -- and Apple will need to think of something to dig it back out.

What can Apple do to jumpstart digital music sales? Share your thoughts in the comment box below.

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Longtime Fool contributor Rick Munarriz is so old school that he still owns plenty of vinyl. He does not own shares in any of the companies mentioned here. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 03, 2010, at 3:31 PM, gslusher wrote:

    "The labels and Apple do know that I can just go to Google's (Nasdaq: GOOG) YouTube and likely stream the entire song as a video. Why hold back?"

    Simple. If you can stream a song, you can record it. (Check out Audio Hijack Pro for the Mac, for example.)

    As for YouTube, remember that the videos may be illegal (infringe copyright) and the copyright holder can get the video taken off YouTube or the audio suppressed. (Some are smarter and allow some videos for the promotional value.) Considering the penalties for illegally distributing a copyright song, which are based upon the number of copies--i.e., the number of YouTube views, posting a music video on YouTube could cost the person who posted it hundreds of thousands of dollars.

  • Report this Comment On November 03, 2010, at 5:05 PM, Martimus2060 wrote:

    I think the 30 second sound clip came from the old deal for the performance rights fee. Anything over 30 seconds was deemed a performance, and therefore the performance fee was required to be paid. I think that must have changed recently, and if so, that's why Apple is now "free" (pun intended) to do this.

  • Report this Comment On November 03, 2010, at 6:41 PM, stan8331 wrote:

    The record companies have a long history of trying to screw their paying customers (I'm old enough to remember their proposed legislation for a Federal cassette tape tax). That's a large part of why they find themselves in such dire straits, but they seem wholly incapable of grasping that they are dying of self-inflicted wounds. Rather than building a 21st Century business model that rewards legitimate customers with a buying experience that's easy, inexpensive and value-added (think Netflix), they continue in a vain effort to force more breath into their haggard old 20th Century way of doing business.

    Customers aren't the only ones screwed by traditional record company practices. It's a little-known fact that the vast majority of artists signed by a major label never see anything more than a trivial amount of money from the deal. They basically operate as an unpaid farm system - the occasional band that sells millions of records may see some money, but everyone else works for free.

    Modern technology essentially makes traditional record companies obsolete, and I see more and more indie bands succeeding with highly professional DIY efforts, in terms of both product and marketing/distribution. Major labels will continue to have a role to play for the foreseeable future in terms of distribution deals with the largest retailers, but outside of a handful of multi-platinum acts, most bands will do far better financially by refusing to touch major labels with a ten foot pole.

  • Report this Comment On November 03, 2010, at 7:33 PM, MacTheKid wrote:

    The days of walking into a record store while the latest or hottest music is playing over the speakers is gone. The 90 second clip will do little to boost digital music sales. Having iTunes radio stations and DJ's or dedicated clerks would do so much more than longer clips, Genius, or Ping.

    Record companies should also wake up to the fact digital music is now here to stay, and that many forms can exist from MP3 to HD and make MORE music available digitally in more formats. I think simply having the Beatles catalog on iTunes, or optional higher quality downloads would probably do more for iTunes revenues than 90 second clips. It is all about the media, and that is the failure of movies on iTunes, the movies you want are simply not there.

    Computer companies should realize that music gurus (DJs and Record Store Clerks) have the ears when it comes to promoting music...

    PS: FYI, Rick vinyl is making a "retro" comeback...what will disappear is DRM.

  • Report this Comment On November 03, 2010, at 9:31 PM, TMFMileHigh wrote:

    @gslusher,

    >>As for YouTube, remember that the videos may be illegal (infringe copyright) and the copyright holder can get the video taken off YouTube or the audio suppressed.

    This isn't really true any longer. VEVO has partnered with most labels to offer official videos on YouTube, with ads appearing ahead of playback. Here's a good example featuring The Foo Fighters' 'Learn to Fly':

    http://www.youtube.com/watch?v=1VQ_3sBZEm0

    FWIW and Foolish best,

    Tim (TMFMileHigh and @milehighfool on Twitter)

  • Report this Comment On November 04, 2010, at 12:01 PM, Brent2223 wrote:

    Does anyone listen to these previews? Itunes is a tool to buy what you want, but not a great place to discover new things. I think that's what they want ping to address, but I also think companies like YouTube and Sirius will continue to be the content 'discovery' platforms. Think apple would be better off partnering with these sorts of companies as opposed to try and build their own platforms.

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