Jun 22, 2011

How can Best Buy’s Music Cloud service succeed?

Best Buy has announced their own cloud-based music service, named Music Cloud. It is set to compete with Amazon, Google, Microsoft, and Apple. However, Best Buy is only known as a store where you can buy stuff; the other companies have a good deal of experience selling services. How can Best Buy succeed in a market dominated by a few companies with a lot of experience, and littered with a large number of tiny, motivated companies who were there first?

I think it's doomed unless they can use their physical stores to sell the heck out of it. I just don't think people will opt for their service over Apple, etc. Why would they? People don't think of Best Buy as a purveyor of online music services. It's an odd niche for them to be in.

Best Buy has a popular brand name, but I’m not sure they’ll ever have the “cool” cachet like Rdio or Last.FM or Pandora. If people can get music free from a streaming service, or from a torrent, I’m not sure they’d want to pay for Music Cloud, or even Apple’s Mac-Only iCloud.

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