The CEO of pressplay, the joint online music venture from Vivendi Universal and Sony, shares his thoughts on the next
phase of digital music distribution.
Jim Welte 07/06/2001
The threat posed by online music startups has largely subsided, with pioneering digital music companies falling victim
to the dot-com implosion and getting swallowed up by one of the five major record labels they had once hoped to
disintermediate. Those labels now hope to lure consumers to digital music with a price tag. The two label-backed online
music initiatives, MusicNet and pressplay, plan to launch later this summer. While Warner Music Group, EMI Group
(EMIPY, info) and Bertelsmann have backed RealNetworks (RNWK, info)’ MusicNet venture, Sony (SNE, info) and
Vivendi Universal (V, info) are jointly pushing their pressplay service. pressplay CEO Andy Schuon tells Business 2.0
Online how he hopes to convince consumers to pay for music online.
Can pressplay succeed without licensed content from the three remaining major labels? Are you prepared to launch
pressplay without those licenses?
pressplay is going to launch with a significant catalogue of music from Universal Music Group and Sony Music as well
as a number of independent labels with plans to add more over time. In fact, our ultimate goal is to offer content from
myriad providers, offering consumers the most compelling online music subscription service available.
You’ve been in this business long enough to have heard the declarations of some of the startup digital music
companies as recent as two years ago about disintermediation and the like. Did you ever think that was possible, and
why or why not?
Two years ago–I don’t think anyone imagined today’s online music landscape. What we offer isn't necessarily a
replacement for many of the ways people interact with music. We're offering a new channel as VHS or cable was to the
film industry. But the vision that artists would connect directly with their fans is certainly something that we hope to
incorporate into the pressplay service offering.
What is the single biggest hurdle that pressplay has to overcome in getting a critical mass of consumer adoption?
Changing behavior. pressplay is part of a new consumer proposition. We’ll be offering the music people are used to
getting in the record stores, and in some cases, the music they’ve been getting illegally. And while research suggests
that consumers are willing to pay to experience music online, our challenge is to make it easy, price it right, and offer an
exciting trip through the world of music.
What will be pressplay’s distinguishing characteristic? I know it’s hard to say because no one has launched their
service, but how do you hope to differentiate pressplay from its counterparts?
pressplay’s strengths are its programming and its people who have tremendous experience presenting music to the
music fan. pressplay will be a music service. pressplay will not simply be a search engine. If we do our job right,
pressplay will be the place you’ll go–via our affiliate partners–to start, build, constantly grow, and experience your music
collection. And we’ll provide lots of "extras" to make the experience one worth remembering–guides, playlists, new
music every week, and other interactive features, which will be augmented based on ongoing consumer input.
What were the primary attractions pressplay had in making Yahoo! its first distribution point? Did the leadership of that
company make them a likely ally?
Yahoo! (YHOO, info) has done an incredible job building a brand that today is a part of people’s daily routine and
vernacular. When you get in your car, often the music just comes on when you turn the key. You don’t even have to
think about it. Over time, pressplay will hopefully become a seamless part of your everyday Yahoo! experience. And it
goes without saying that Yahoo! provides one of the largest online audiences, so we are obviously thrilled to have
Yahoo! as one of our affiliate partners, and as a result, be a part of its cadre of entertainment offerings. Additionally, I
am personally excited to be working with [Yahoo! CEO] Terry Semel again, who was running the Warner Music Group
while I was general manager of Warner Bros. Records.
Jim Welte is a reporter for Business2.0 Online.
"Never offend people with style when you can offend them with substance." --Sam Brown
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