Excerpt of Kelli Richards’ Q&A with Michael Robertson, the Bad Boy of the Digital Music Industry. Michael Robertson is a longtime provocateur of the music business and the founder and former CEO of MP3.com, one of the most popular Internet music sites ever. His newest startup, DAR.fm, is a centralized Web-based TiVo for radio. Users can search the programming schedules of over 600 music and talk-radio stations and schedule DAR.fm to record up to 4 hours of any broadcast. Robertson sees this as the savior of the radio industry, and he may be right.
Michael Robertson has fought more high-profile battles with the record industry than anybody in technology, and his experience in digital music is nearly unmatched. Over his career he has raised more than $100 million in private capital and orchestrated transactions with a combined value of nearly a billion dollars. This is definitely one of the best fireside chats in a great series of impactful interviews. (To hear this entire interview, visit the Resources Page on my Website.)
Kelli Richards: Let’s jump right into present time, Michael, because it’s so compelling – later we’ll go into your remarkable background in digital music. Although it could be a big competitor to MP3tunes, Amazon’s choice to enter the “locker” business is huge. Let’s ask two questions about that. First, would you talk about the basic structure of MP3tunes and how it changes the digital music world – why it’s a better product than what Amazon’s launching – and finally, explain to our audience why, in this unique case, Amazon could prove to be more of an ally to MP3tunes than a competitor.
Michael Robertson: Amazon recently launched a sort of personal cloud music server that, on first glance, is very similar to what we’ve been doing on MP3tunes for years – in that it lets people store music online. But there are some really big differences that consumers should know about. One of which is that MP3tunes lets you put your music in and get your music out. Amazon will happily store your music, but it’s kind of a sinkhole. So if you get a new computer or you want to download your music to an iPod, etc., it’s almost impossible to do with Amazon. They literally make you click on every single song to get your music down. With MP3tunes it’s quite different. We literally give you software to get your music out in one click. We’re not holding you prisoner. I believe it’s YOUR data – whether it’s your music, photos, whatever – and that should always be in full control of the consumer.
Another important difference is that we have an API. What this means is that you can connect to your music in a myriad of ways. With Amazon, today, you can only stream your music to Android. So maybe they’ll make an Apple IOS application and maybe they won’t, but you’re completely at the whim of Amazon. With MP3tunes it’s the exact opposite. We publish to the whole world how anyone can make an interface to their library. What this means is you can use your Android Phone to hear your music, or your iPhone, or a Windows 7 phone, or your Palm App, or even Internent Radio – Logitech or Audiovox – stuff like that. So we’re really trying to build an open approach – an open platform that isn’t controlled and dictated by any one company.
On the legal side, while MP3 and Amazon may be competitors on the consumer mindshare front, on the legal side they need us to win. We’ve been a lawsuit for nearly four years with EMI music that says we’re in a state of copyright infringement when a consumer stores their music in our application. Obviously, I disagree. Like us, they don’t have licenses either; Amazon is an un-licensed application. So in this regard, they are likely to be more of an ally than a competitor.
Kelli Richards: Michael, what do you think happens with Apple and Google in this niche – now that they’re said to be jumping into the cloud / locker mix?
Michael Robertson: I think that the really fascinating part of where the industry is at, is that there have been hundreds, if not thousands, of stories about what Apple and Google are going to do, but neither has done anything so far. I think for sure they’re working on it on some level. I’m fascinated by the state of the industry. What I mean by that is this: Amazon has basically flouted the industry and said, “You know what, we’re not going to get a license, we’re just going to launch a service.” So the industry is now in a tough spot. If they don’t take a legal stand against Amazon, why would Apple agree to pay them a licensing fee? Why would Google agree to pay a licensing fee? Let’s put this another way: Imagine two competitors decide to have a lemonade stand. Imagine one guy gets all his lemons for free. And the other guy wants to compete, but if he has to pay for his lemons, his lemonade is going to be more expensive and he’s not going to be able to compete. And that’s sort of where the industry is. If I’m Google or if I’m Apple, well, the music industry is very onerous. They want up-front money, guaranteed. They want restrictions and limitations and regional restrictions and things like that. And you don’t get any of those if you go for an unlicensed structure… So the music industry is really in a perplexing situation. If they don’t take a legal stand with Amazon, they’re going to see a big response in the industry. A lot of companies are watching this and will be over the next six to twelve months, to see if they move toward a licensed or unlicensed approach. If I were the industry, I’d wait and see what the consumers wanted.
(To hear this entire interview, please visit the Resources Page on my Website.)
*To get your own 2 GB of online music storage at no cost, visit https://www.mp3tunes.com
Kelli Richards, CEO, The All Access Group, LLC
