Figuring Out Free

2011 looks like the year when social media and the music industry finally merge effectively, creating more value than ever to move the industry forward.  While reading about social music listening, it has become clear that the music industry has finally "figured out free", a result of a dramatic shift from focus on "ownership of music" towards the "sharing of music". 

Many argue that music streaming sites like Spotify, Pandora and the coming soon Myspace Music 2.0 have stimulated a new form of sharing and experiencing music, however I argue that this progression is simply a return back to former behaviour.  When consumers suddenly had access to millions of songs, for free, in the late 90s, consumers stopped experiencing music together and the excitement of owning music died.  However consumers have an innate need to share and experience music - in concerts, with friends listening to the radio, and so on.  We want others opinions on music we like, music we don't like.. it binds us together.  These new services simply support this need in an online context.

I strongly suspect that illegal downloading will soon be perceived as too static, one directional and not engaging as service providers continue to improve nurturing this need of collective experience and sharing.  Studies already indicate that countries with easy access to music streaming services witness sharp declines in illegal downloading. Wake up Australia!

Do you agree?  Is the industry finally getting it right and accepted that people simply demand more value for money when it comes to consuming music? If not, what more need to be done?