There is change afoot in the music industry, and it centers around the debate whether to release digital music files in the MP3 format without copyright restrictions (see more in the NYT article). Some independent companies already offer free digital content as a means of creating hype (the logic being that hype will lead to eventual sales). EMI has linked up with Baidu.com in China (where music piracy runs rampant) to provide free streaming music on the latter's site. Yahoo intends to offer more unrestricted digital music files in '07, and Sony BMG and EMI are looking into the unrestricted model as well. Some European governments are assessing consumer-driven demands for legislation on interoperability between formats and platforms (gasp!). I spent a LONG day at a symposium last week intended to create a bit of similar change in the publishing industry. Looks like the momentum is building for more free stuff online, right? Well, the point really isn't about free digital content; its about making profits using free digital content. We're all scrambling to find the right digital business model that incorporates some free content that will make users want to buy. I'm sure many are scrutinizing what the music industry is doing now for lessons on what (not) to do.






