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That's a pretty bang on analysis.

Spotify, like netflix, seem to 'get it'. They offer a 'listen to as much as you want' plan for a flat monthly fee.

I'm sure their biggest achievement to date is convincing the music labels that this is a good idea.

I can't see any other business model that can compete with this, and I fully expect it to become the dominant entertainment distribution model in the next 2-3 years.

I expect this is why Apple are launching icloud, even though it's going to cannibalise their existing itunes business.

Question is, I wonder if the same subscription model will eventually permeate to the app store?



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