[trotsky]

Stifling innovation? There are have been music subscription services that provide all you can eat access to major label content for years. Most of them have struggled, at least two shut down and napster (v2) was acquired by Rhapsody in a fire sale.

In fact, you can get this service on your phone right now from Rhapsody for $10/mo. Assuming a two year phone life, this roughly translates into taking a $240 service and charging $60 for it (75% less).

Lets look at what that breaks down to in a simplistic model where half the fees go to the content pool and the four majors split equally.

Rhapsody: $120 / 2 (years) / 4 (majors) = $15/year

Oblivion: $30 / 2 (years) / 4 (majors) = $3.75/year

Compare that to something like $7 per title sold and you find that it'd only be clearly beneficial to a label in the case where that user would have otherwise purchased none of your music at all during that period.