The Downloading Threat
One of the other things that I wanted to mention in today's column, but decided to omit for reasons of space, was what the future holds for Bermuda's CD, DVD and video game retailers.
In short, unless they change their business model, in a few years they might find themselves going out of business.
With the advent of digital music players and online stores such as iTunes, people are increasingly downloading their music instead of purchasing it on CD. Recognising the writing on the wall, yesterday British music store HMV announced that it would be setting up its own music download service to compete with iTunes and would create "digital areas" in its stores to help customers familiarise themselves with the download paradigm.
Video games are going the same way. When Valve released Half-Life 2 last year, it was the first major PC game that could be both purchased and downloaded online. Although developers have not rushed to follow Valve's lead, it seems inevitable that they will eventually do so: by cutting out the publisher they can make more money from their games. It's the same story in the console world. According to Glen Bayer of N-Sider, writing in January this year:
Microsoft is already offering consumers the ability to download extra content as well as retro games with its Xbox Live service. Sony's PlayStation Portable meanwhile will likely allow users to download MP3s and other content to memory sticks. Nintendo's iQue in China already allows users to download video games from the internet onto cartridges.
As bandwidth increases, movie downloads will be next. Earlier this year Sony announced that it wanted to create an "iTunes for movies" and would make its top 500 films available digitally in the next year.
Downloading is not only convenient for customers, who can immediately (or as fast as their internet connection allows) get hold of the products they want, it's cheaper too. Even in the US and the UK it's usually cheaper to buy music online, but in Bermuda the attraction is even greater as it avoids the need to pay shipping and duty. If the likes of Music Box want to stay in business, they'd better put their thinking caps on now.
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Just a short comment. We use iTunes all the time. We download and make our own CD's. 99cents a song or whatever your choice. Hundreds of thousands of choices.
Have to run now, have a meeting in a Bannana Republic.
Posted by Monkeyman on 11.08.05 at 09:49
It all comes down to the usual quality -vs- quantity argument at the end of the day. The only songs I have downloaded sound awful.
Posted by Bandit on 11.08.05 at 10:37
What happened there?
Personally, I will be buying CDs and LPs for as long as I can.
Posted by Bandit on 11.08.05 at 10:37
Your point is well taken. Our reproduction is the same as a valid CD. Plus, I can listen to Pavorati, Bee Gees, Alabama, Willie Nelson,Bob Marley and the rest without having to change CD's.
It's personnal choice. We have no problem with the afformentioned when it comes to reproduction.
Mabe you should turn down your whoofers, or ^..^.
Have a bannanafull day.
x x x x x
Posted by Monkeyman on 11.08.05 at 10:48
In theory songs downloaded from legal sources (say at 192 kpbs)sound virtually identical to CD quality, that's the joy of the mp3 encoding.
Out of interest, are there any downloading laws in Bermuda? Or intellectual copyright laws? I doubt there are, which would mean, unless I'm mistaken, that as long as my IP is in Bermuda I can download anything I want, however I want. Is that right?
Posted by Lost in Flatts on 11.08.05 at 12:24
The concept of owning a “CD” or going to a shop to rent a “DVD” will, in a very few short years, be bizarre to our yoof and us codgers will be laughed at for reminiscing about it. At the press of a button you will be able to watch any film or listen to any piece of music whenever you want.
Of course, in Bermuda I’ll have to start the process a little earlier that those city slickers overseas to take into account my 256KB, $180 per month DSL.
Posted by hotspur on 11.08.05 at 14:28
hotspur,
Your internet speeds will not increase.
Apparrently, and I not kidding, all of the telecom community are saying that Bermudians only want 128k service.
You will notice that BTC is now trying to introduce 128k service for $59. This is obviously going backward, but apparently this is what we want.
Anyway, you can only get music for quick downloads forget the movies unless you are using Bit Torrent and have 24 to spare! Hey for kicks you could order from netflix and get it in 36 hours from the USA.
read
Posted by read on 11.08.05 at 16:19
Things change. It happens, and either you go with the flow or you don't. End of story.
Posted by anon w/reason on 11.08.05 at 17:19
,,, yeah, but hopefully for the better.
If read is right then that’s not better. It’s crap. BTC continue to tear the arse out of internet pricing and everyone in Bermuda seems to just accept it. Government should be doing a lot more to make Broadband available to everyone in Bermuda (like other countries are doing). The downloading threat will not be a threat for a long time otherwise.
Que, Sera, Sera.
Posted by hotspur on 11.08.05 at 17:53
Dig a little deeper and you'll find out why Bermuda does not have much in the way of competition in these kinds of arenas. Monopolies, Oligopolies, you name it. Eventually tchnology will even the playing field but until then, it's make hay whilst the sun shines. And that pretty much goes for everything in our precious little kingdom.
Oh shoot I forgot to turn off the cynicism....
Posted by SmokingGun on 11.08.05 at 18:25
hotspur,
The government is doing something about it. The will approve BTC's request for 128k. Oh, I forgot to mention you have to now sign a 12 month contract with that deal.
And, they are trying to shut down anyone who is trying to make the speed faster... Look at what the Bull service is going through. All they want to do is offer $89 a month for 500k and not $200 and the Govt says no you cannot because it is illegal.
CableVision is chomping at the bit to offer you 2MB service for $100 a month and the Govt says no because it will make the price unfair to other companies. Errr... isn't prices supposed to go lower?
Anyway... living in the dark ages in BDA is not nothing new. Afterall, in NYC you can get 6MB for $30, the same in Bermuda could cost about $1,800 per month with the current Bda pricing model.
You could easily afford the $1,800 per month... think of what it will save you in movies!
read
Posted by read on 11.08.05 at 18:26