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May 25, 2006

WSA: Digital Media panel

Posted by Tricia Duryee at 11:59 AM

During a panel discussion on digital media, Steve Lidberg, a research analyst at Pacific Crest Securities, made an observation about the content market for computers and mobile phones.

People today can pay and download a lot of content, whether it's video, music or games. But Lidberg said consumers only have so much pocket change; a subscription model will become the preferred business model over selling items one-by-one.

That's where Real Networks has been an innovator, Lidberg said. Today, it offers a music subscription model. He said Apple Computer's iTunes service could even flirt with the idea of a subscription model.

"We will see more subscription offerings," he said. "A consumer's wallet is only so thick."


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Tricia Duryee
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