Datz.com, a UK online music service, last week launched Datz Music Lounge in cooperation with Warner Music Group (WMG), EMI, and indie aggregator The Orchard. For GBP 100 (US $159), users can access Datz's entire library as permanent MP3 downloads for one year. Although the music tracks are DRM-free, users must obtain a USB key, provided by SafeNet, which authenticates users and their PCs. The USB keys enable downloads on up to two PCs per user (Macs and other devices are not supported). The site also has safeguards in place to stop scripts from automatically downloading tracks 24 hours a day.
It's interesting to consider the difference between Datz Music Lounge and subscription services that use DRM like Napster and Rhapsody. Datz Music Lounge turns out to be a better deal, even with DRM considerations taken into account. During the first year, Datz Music Lounge users can download all the music they want, just as with subscription services. If they want to download more music after the year is up, they must presumably re-up for another 100 quid. This works out to £8.33 per month, which is below the UK price of £9.95 per month for Napster's basic service -- and far below the £14.95 per month for Napster To Go, which allows portable device transfer.
And of course, users can continue to listen to music they download from Datz Music Lounge after the year elapses, and to share it with their million best friends at any time. This isn't the case with Rhapsody or Napster. Datz Music Lounge is particularly a better deal for users who like to sample wide varieties of music and therefore find the iTunes or Amazon pay-per-download model too confining.
It is also interesting to compare Datz Music Lounge to eMusic.com, which offers subscription downloads of DRM-free MP3s but limits the number of downloads per month according to subscription level. Currently eMusic.com does not offer a premium level with unlimited downloads; its top level provides up to 75 track downloads per month for £15 in the UK. £100 per year won't even buy eMusic's Basic service, 30 downloads for £10.99 per month.
It's fair to say that if Datz Music Lounge proves successful, then eMusic may be compelled to lower its prices, offer a premium unlimited-download level, or both -- especially since eMusic offers no major-label music at all. And Napster could find its business model in serious jeopardy (Rhapsody is not offered in the UK).
These subscription services can, for the moment, take solace in the fact that Datz Music Lounge only offers music from two of the four majors -- and limited selections at that. If the other two majors (Universal Music Group and Sony Music) eventually decide to participate, they may demand higher prices in exchange for a broader catalog. That would be a tough sell to users, so it's unlikely to happen.
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