New Internet start-up companies MOG and Rdio have just released the future of free legal digital music by offering subscriptions for unlimited music for a small monthly price where pay-less is get-more.
MOG has three types of subscriptions available. Free Play has users sign in through their Facebook and gives limited access to millions of songs for streaming. Free Basic is $4.99 month and features unlimited music with no ads. Primo is the top grade subscription – offering unlimited music, no ads, and mobile streaming and downloads coming in at $9.99 per month.
They also plan on using Facebook to reach other users and even give access to more music. "We won't ask users to spam their friends," said Carter Adamson, Chief Operating Officer.
He also says the user will get more songs depending on how much involvement they have on Facebook.
Rdio has four subscription features starting with Rdio Web at $4.99 a month and offers unlimited web streaming of millions of songs. Next is Rdio Unlimited for $9.99 a month and adds unlimited mobile streaming to the feature as well as a sync and go anywhere feature. The last two subscriptions are unlimited family plans. The first is for two people at $17.99 a month and the second for three people at $22.99 a month.
MOG and Rdio enter the digital music contest at a pivotal time as sales for Apple's iTune's begin to slow down.
They follow the model of British company Spotify, which is continuing to create a buzz all over Europe with its almost two-year-old company.
Other companies trying to follow suit are Beyond Oblivion, who are offering users free music if they purchase special devices.
The leading platform for music streaming is Rhapsody, but its prices are much higher, offering services from $5 to $15 and having around 800,000 users.
MOG and Rdio each have a little less than 100,000 users but are confident that they will grow because of the success of Spotify which has 10 million users. Of those 10 million users, one million pay the subscription fee.
Record labels are said to like the idea of the new system as they see this as a way of not being robbed of money from illegal music piracy.
"It's not a shift to free," said an anonymous label executive who can't comment publicly yet because all the details have not been worked out yet. "We're building a larger funnel and driving more consumers to a subscription service."
In the past decade more than 35,000 illegal music downloaders have been sued for piracy by record labels. These same labels have had to cut thousands of jobs and have watched sales plummet to around 50 percent of previous figures.