Datz Music Lounge

I am a little late on this one. A couple of weeks ago Datz Music Lounge announced that it would be offering unlimited permanenet downloads in the UK for 99 GBP per year (approximately $155). Read more about the service here.

Datz offers a tremendous value proposition but it will never take off - just like subscription services will never be more than niche. The problem is a misunderstanding of consumer psychology.

Consumers will not accept the high out-of-pocket price for entry. Except for the music elite it is very difficult for the mass of music listeners to come up with $155.

Bottom line - cash trumps value.