The way I see it, there are so many things wrong with this business model that I'd be shocked if it ever got off the ground.
- When you upload one of your tracks, you get a coupon that you use to to discount the next song that you buy from, guess who, Redigi. This is virtual cash. Unlike CDs or LPs of old, you can't sell them for real dollars that you can use on anything else later.
- If people would rather steal new digital music files, why do they think that they'll buy used ones instead?
- The rights owners have to get paid. The overhead required for the virtual paperwork seems overwhelming, although ReDigi states that they have some proprietary software that will take care of it.
- They'll still have to get license agreements from the labels, if the labels have anything to say about it. This will go to court before it's settled, I bet, which may sink the company before it gets out of the gate.
Go to the ReDigi site to watch their intro movie.
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