Free Music, Brought to you by...

By Andrew
We7 is a strangely named music download service which promises free, DRM-free, ad-supported mp3 downloads. Cnet.co.uk claims that the service “absolutely, categorically will not succeed.” I agree with this assessment of the We7’s current business model, but with a few adaptations We7 – or at least its business model – could be the next big thing.

The Cnet article addresses the fact that consumers will be annoyed by having to listen to a 10-second commercial at the beginning of every mp3 they download from We7, and they’re absolutely right.

As Hayley’s article about free online TV-show streaming demonstrates, consumers do appreciate advertisers subsidizing products they enjoy, but this system only works when it’s done in a way that doesn’t ruin the product. 10 seconds of advertising at the beginning of every audio track on an album might well ruin the listening experience. I imagine that consumers would feel more animosity than appreciation towards the advertiser whose spot is played over and over again after every song on the mp3 player.

The other problem with We7’s current business model is that it would be quite simple for consumers to strip out the ads from their downloaded songs. It would be difficult to convince advertisers to sponsor songs when they know its likely their ads will never be heard.

A successful widely accepted method of inserting advertisements into music already exists: it’s called radio. Consumers don’t seem to have a problem with listening to ads between every five or ten songs on the radio. To be successful We7 will have to combine the flexibility, selection and portability of mp3 players with the advertising model of radio.

The answer is – as it often seems to be – a new technology. If mp3 players like the successful iPod and the not-quite-yet-so-successful Zune updated their software to allow the insertion of ads after every 5 or so ad-supported songs, We7’s business model would work well.

It’s unlikely that Microsoft or Apple will partner with a small startup like We7, but there’s nothing keeping the two giants from stealing the concept. Being able to advertise free music downloads might be the boost that a struggling mp3 player like the Zune needs.