The subscription model in the digital music market

Two new/old entrants in the digital music mix this week — Virgin (subcriptions starting at $7.99/month for unlimited access to 1 million+ tunes) and eMusic (a bit more costly) — both of which are betting that Apple and Microsoft and the rest of the a la carte crowd have the pricing thing wrong.  From a transaction cost perspective, it makes all kinds of sense.  But perhaps people really do want to “own” their music?

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