• by Seana Mulcahy , March 6, 2006

Hey, have you heard about Wal-Mart's new music gig? Well, the mega-retailer is making headlines online. The company recently announced the launch of Wal-Mart Soundcheck (www.Wal-Mart.com/soundcheck ), an online service that touts exclusive studio performances available on its newly launched store, along with interviews with new and established bands and musicians. According to a company press release, this digital music store is part of Wal-Mart's broader strategy to make itself trendier and draw more customers to its services.

Certainly there is no lack of Web sites offering music downloads these days. From a branding standpoint, I think this new service could be a bit challenged. When you think of music downloads, what immediately comes to mind? Napster? BearShare? iTunes? Well, whatever you've said, it most likely isn't Wal-Mart.

The other odd thing about this new concept is that it launched with Gillete Fusion as its sponsor. The bands Yellowcard and Switchfoot kicked off the new initiative. Don't these young boys even shave! The company recently announced the additions of Rascal Flatts, Jewel and Goo Goo Dolls to the program. Many other artists, including Ne-Yo and Miranda Lambert, are lined up.

I like the idea, though. It gives new and emerging artists a chance to be associated with a big brand. In Wal-Mart's brick and mortar stores, customers will be able to view two and three-minute sneak previews on various HDTVs in the electronics department. There will also be half hour or so viewing events on or about every few weeks on a Friday night. This seems a bit weird to me, though. I can't imagine kids wanting to go to Wal-Mart to see such a thing. Why not just view the exclusive interviews online? Or perhaps shell out the 88 cents to download the full performance?

Will the 88-cent price point per download put a dent in those music download sites charging $1 or more? Or maybe it will force the others to lower its respective pricing as well?

I have to say it makes me think of a Napster ad from not too long ago. I may not remember the copy as it was. However, it said something like unlimited downloads for $9.99 per month versus an iPod costing $1,500 for music. iTunes charges about a dollar per download. Most iPods hold 1500 songs. When you add it all up it does become quite costly. No wonder people try and rip the music off.

So I ask you this, dear readers, will music downloads dwindle as portable devices saturate the marketplace? Will consumers get fed up with paying such a premium for songs?

Consider the facts first:

iTunes reported selling its one billionth song in February of this year.

According to NielsennetRatings, traffic to the iTunes site grew a whopping 241 percent last year.

There are several rent or buy music sites that launched last year.

Most music download sites have anywhere from 1.5 to over 2 million songs for sale.

When it comes to music downloads, what's more important? Convenience? Software? Price? Selection? Do you think the demand for downloads will flatten soon? Will new-generation devices like mobile phones with music download capabilities and services like podcasts compete with the likes of iTunes? Could you actually see yourself rushing in store to Wal-Mart on a Friday night to see a video of a band? What should Wal-Mart do with Soundcheck online? Who will be the next iTunes? Post to the Spin blog and let's get talking about this.