Founder of MP3.com shares his thoughts on Digital Strategies

An article and interview by Greg Sandoval at CNET News with Michael Robertson, founder of MP3.com, in which they discuss current digital music models and how Michael feels are flawed based on the current cost structures dictated by the labels can be found here. I agree with Michael on a most of his points, royalty rates that don't support business models, eagerness to be partnered with large corporations on behalf of start-ups, consumers will have the final say, etc. But I think this is more of people trying to hang on to old ways of thought rather than tearing down a business model. The labels have the right to dictate the value of their assets (their recordings) and time will show if they can hang onto that as it appears the value of recorded music gets closer and closer to zero based on market forces created by consumers. On the other hand, a number of these digital start-ups funding by large venture capitalists were contingent on developing a relationship with these labels and access to their catalogs, even knowing that it was a matter of time before the bank goes dry. I addressed attention economics in an earlier post and I truly believe that's where all this is heading but it is difficult to make a business of it until some changes occur by all parties. As they say 'timing is everything' and eventually all the parties that are involved in this game will either adapt or die.