Is There A Market For Used MP3s?

Hypebot had a post recently about ReDigi, who've announced that "the world's first online marketplace to legally recycle, buy and sell, used digital music files" will go online later this year. OK, listen to these words as you read them - "used digital music files."

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.

I can foresee a scenario when there might be a market for used digital files, so that makes ReDigi is worth watching. I just don't think we're there yet.

Go to the ReDigi site to watch their intro movie.

-----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.