John Buckman from Magnatune announced today a change in their business model: they're moving away from the sales of individual albums, and fully embracing a no-limits subscription model. For one monthly subscription price, users get unlimited access to their music catalog.
The fact that a relatively small player like Magnatune can get away with this at prices competitive with Rhapsody and other music services with millions of popular songs is a powerful affirmation of what today's music consumers really want. And in fact, Buckman states their data conclusively suggested that, when users were presented with a "pay-what-you-will" per-album model vs. a flat rate subscription model, users overwhelmingly went for the subscription.
