California Adventure

Joe Wilcox | August 10, 2004, 07:53 PM

Yesterday, my family wrapped up its first vacation in four years. We were on the West Coast, so where else? Disneyland.

To be downright frank, I didn't like Disneyland, and neither did my wife or daughter. But we got a big kick out of Disney's adjacent park, California Adventure. Fewer people, more exciting rides and really interesting attractions made California Adventure the right park for us.

Over at Disneyland, strategically-placed speakers blew out music from various Disney movies. Several times, I told my wife that it seemed like we were living in a film drama, because of the theatrical background music. California Adventure played songs with, what else, a California theme. There, I caught wind of a Randy Newman song I hadn't heard before.

Today, I snatched a (legal) copy of Randy's "I Love LA" online. Still, my favorite thing about online music stores like iTunes, MusicMatch or Napster is the ability to find and buy just the one song that I want when I want it. According to JupiterResearch surveys, discovery ranks as one of the top priorities of consumers using online music stores.

Speaking of online music stores, Roxio would have to sell its consumer software titles while I was out of the office. Sonic Solutions will get the software, as Roxio bets the bank on digital music sales and subscription services. Apparently, there's a name change to Napster. It's a big bet on Roxio's part, considering online music stores account for just a fraction of music spending. Colleague David Card's report, "Market Forecast: Music, 2004 to 2009," explains why.

By contrast, Roxio's software business is mature and operates in segments where consumers show continued willingness to spend those hard-earned greenbacks (bits for those with direct deposit). I will watch Roxio--er, Napster--closely with fascination. The company's music strategy is closely aligned with Microsoft's file formats and digital rights management technologies. For example, Napster is one of the services available in Windows Media Player 9 (or 10, which is testing) and Windows XP Media Center Edition. WMP 10 features Janus DRM, which opens up new music sales and services opportunities, which I would expect Napster to take advantage of.

If you read David's report, the bigger money is in music subscriptions rather than sales. Napster offers both, which is an advantage, particularly considering JupiterResearch surveys show greater consumer interest in owning music. My thinking on buying music versus renting: Some people like Disneyland and others California Adventure. There's room for both.