Amazon Cloud and Apple icloud – Fighting the Music Lovers Need to Store Music

Amazon and Apple have announced their plans to turn the digital music world upside down by offering music on a “cloud” model, where purchased songs are not stored on an individual consumer device, but stored on Amazon or Apple servers to be accessed by the consumer anywhere. A good overview and comments in Knowledge @Wharton Today Blog

The benefits of cloud music storage and access look appealing – no more syncing multiple devices like laptops, tablets, handhelds, phones, etc. These devices will now connect to with each person’s collection on the cloud server for instant access and synchronization.

One concern for this new approach is that it fights a basic consumer insight I have observed. Music lovers want to acquire, own and store their own music. They want it accessible and untouchable. While having one’s own music stored on a cloud is virtually the same, it is different than physically building and storing your own collection.

Let me start by saying that purchasing and storing one’s own music is actually illogical from a cost benefit perspective for the following reasons:

• There are already subscriber services which will allow access to vast selections of music at small monthly rates. While not for downloading, any song is available at your command.
• Newer radio formats (Pandora, Satellite radio, digital cable, internet radio, etc,) have multiplied, each with the ability to customize your listening experience to very specific tastes. Again, you can listen but there is no download.
• Purchased music has a shelf life. I don’t actually ever listen to Springsteen’s Born to Run album anymore. Younger listeners still have their Hanson’s and Boys to Men hit singles from the 1990’s even though they no longer listen to them.

However, despite the illogic of purchasing and storing a lot of music for individual consumption, it is in music lovers DNA to want to own, and keep with them, their own music. The cloud is therefore a scary proposition for many because the big company may one day decide that they want to change the rules and your music could vanish. Unlike in business, where cloud software makes good financial sense, consumers may not be rational in this regard. Cloud ownership starts to feel like renting music even though you do own your collection in the cloud. And what happens when the cloud people realize that not all that music in your collection was purchased through them (or at all).  They might ask you where you got it. Hey, that’s my song, leave me alone. Get off of my cloud!

To the music lover and collector, the right to own and store your music in the safety of your house should be written into the constitution, like gun ownership, or free speech.  consumers want to own certain things even if alternative models are more efficient.  Personal music storage is partly illogical, yet a strong motivator in music sales. My bet is that Amazon and Apple learn this lesson quickly.

Why On-Line Grocery Doesn’t Yet “Deliver”

Wall Street Journal reports  that Amazon is expanding their groceries online program with free delivery (without minimum order size).  It is part of their program called AmazonTote.  You get once-a-week delivery of groceries on a designated day with free delivery. Analysts predict this might finally break open the online grocery model.

So what’s up with home grocery delivery? Why hasn’t online shopping simply replaced the retail format? The concept and the business model have been around for over 15 years. Companies like Peapod started out in the early 1990s and many grocers quickly scaled up for what was believed to be an onslaught of consumers migrating to the internet for grocery purchasing.  Many of those same grocery chains have since cancelled the services due to lack of widespread consumer adoption.  Remember the “dot-com” era company, Webvan, that invested millions into a national infrastructure for home delivery and then went bankrupt back in 2001? Their issue was lack of customers, not a poor business model (It could be said that the business model was built on a huge predicted consumer base, so it was sort of flawed in the end.).  The small base of online shoppers of today are typically the elderly that may have trouble getting out. But for the average mom or dad of a growing family (grocery target sweet-spot), there is an obstacle, a dissonance, something isn’t working.  I sense a “consumer insight”….

The Consumer Insight (according to me) Why People Avoid Online Grocery

1. Gathering food is a psychological need.  Humans are creatures that have a deep instinct to go out and gather essentials such as food.  Whether it was to go kill an animal or tend a farm, it is who we are over the last couple of million years.  Therefore:
   • Gathering food is a highly sensory experience.  Consumers want to see, touch and smell their food.
   • Food and hunger is immediate.  The average shopping trip is under $20 because shopping is partly impulse, an on-the fly experience  (“I feel like tacos, tonight, we have everything except the tortillas”).
2. Consumers are not disciplined by nature.  Computer “database” interfaces require discipline and a pre-planning mindset.  While a grocery store may be a pain, the interface is pretty darn easy – you see it on the shelf, grab it, and go.  Therefore:
   • Selection and menu planning are easier done in a store environment where like items are visually grouped together for meal solutions.
3. Online registration is also cumbersome. Kathy has started the process 3 times and was “timed out” by family distractions during the process of gathering all the needed information. This is her single reason for not doing it.  (She is a highly disciplined person, btw).

The Solution Is In The Interface

One thing a computer screen does do well is show pictures in graphic color.  This means there is hope for online shopping.  However, most online grocers of today ignore this power. Lets look at the average selection approach to a typical database.  Does this approach make you hungry??   It’s all there – complete description, great feature price and free delivery.   

 

Kraft Grated Parmesan/Romano Cheese  8 ounces  Cannister

$15.87 $7.82

Get it by Monday, if you order in the next 3 hours and choose one-day shipping.

Eligible for FREE Shipping.   add to cart

 

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How about this approach? 

Wouldn’t it be great to scroll over this picture and pick something wonderful?  Of course it a bit more upscale, and the consumer is still likely to buy some sandwich slices in the end, but the experience would be so much cooler.   Retailers like Wegman’s have been wildly successful with a shopping experience that visually delights the consumer in-store with cheese bars, fresh food preparation, etc.  On-line retailers should take this approach of delighting your visual sense. Why not have a Café page for your breakfast – breads and pastries, coffees and a featured meal page, which would automatically purchase the recipe ingredients and provide recipe and preparation directions. Mama Mia – a deli shop that looks like an old Italian deli.  The possibilities are endless because it is all visual.  Its easy to set up – its just graphics!   Use the visual world of the computer to tap the consumer insight.  Online retailers are not yet using the power of the consumer insight to delight the shopper.  The “database” approach is nowhere near the what it could be.  The solution is to excite the consumer so that they will want to reach out with their hand and grab the displayed item.

Gotta go.  I’m getting hungry……