personal digital radio

Personal Digital Radio (PDR)

During late 1997, I was experimenting with wireless data and came upon the concept of a wireless handheld unit that can access a library of audio content and would stream the audio on demand. During that time the MP3 format was available but not well known or wide spread. Portable audio was still being played on Walkmans and few Diskmans.

Imagine never having to buy a CD again or having to maintain and organize your library. Or even buying CD's just for one or two songs.

The above product description would provide the consumer with a revolutionary product that would change the music industry as we know it. The Changes that it will make would be positive and would benefit the consumer and the artist alike worldwide.

Here are some desirable features that the new distribution model will include:

  • It uses the most economical and direct method of distribution; electronic.
  • It allows every musician to reach the public and have an opportunity to become popular.
  • The public would determine the popularity of the musicians by the number of times they request to listen to their songs.
  • The musicians receive a paycheck quarterly directly proportionate to the demand of their music.
  • The public is able to access instantly the artists or type of music they like, and never have to pay for music they don't want to hear.
  • The payment method for the music is simple and affordable based on an hourly or monthly rate.
  • Audible advertising would not be allowed as it distracts music listeners.

The distribution company would house a number of large computer servers, with a database of 10 million plus of digitized CDs, from 1950 to the present and is updated daily. This is an on-line library that is accessed by any of the above wireless receivers from anywhere in the world and having instant access to most of the world's recorded music. Obviously this is much more appealing than spending hundreds of dollars on CDs that quickly go out of date.

This distribution model benefits the artist in the following manner:

  • It solves the issue of copyright. There is no need for the consumer to duplicate music on tape or copy onto a CD when he can access any song or album any time they want for a low monthly fee.The convenience and variety of the music alone will motivate the vast majority of users to use this delivery system instead of wasting their time pirating.
  • From the artists' point of view, they have the freedom to submit their music to the library as soon as they have finished recording. If people began to listen, the artist would be paid a royalty. The servers would automatically keep track of the number of times a particular piece has been transmitted, and at the end of the quarter, would pay out royalties accordingly.
  • If the music is good; royalties should rise exponentially as the artist gains popularity. This would occur both by word of mouth among listeners, and by the artists music ascending the "most frequently listened to" charts maintained by the servers.
  • Every artist would have the chance to be heard, and all types of music could flourish. The public would find it easy to explore new forms of music, And discover new artists. Because the system could handle artists of all levels Of popularity. Artists do not have to know someone or have to have enough promotional capital to rise. Everyone has the opportunity of getting successful based on how the public likes their music. Artistic freedom would be unhindered.
  • Like today's major labels,the distribution company would be the link between artists and the public. But unlike today's major labels, it would not have to force artists to sign binding loyalty contracts or consumers to pay exorbitant prices for packaged music on physical media.
  • And it would not, in the name of economics, need to filter down the vast variety of offerings from the artistic community to only a few "hit" labels. It would play no promotional role. The distribution company would simply act as a conduit for the unrestricted flow of music from the artist to the audience.

To summarize, there are three parties involved in this new music distribution business model:

  1. The artist, who is responsible for the recording and production of music.
  2. The distribution company, which collects completed audio works from the artists and makes it available to the public on demand. It also pays the royalty payment of songs aired.
  3. The consumer, who pays a monthly fee to gain access to the world audio library.

I received investments over half a million dollars and proceeded to prepare a team and setup a company called Headwave to build prototype and test the delivery model in the market.

I thought that funding would be a problem but the most difficult hurdle came from the big 5 recording labels. Since they already control most of the world's music, this is a big threat to them.

As of the beginning of July, 2000, the company finalized the technical development for the launch of the beta units and embarked on Product Usability tests in the fall of 2000. In these tests, 100 individuals were given prototypes to use at home. This program ensured that the final design will meet the needs and expectations of the average consumer. A pilot marketing program was conducted nationwide to refine the business model. This way the company learned how to best promote and sell to consumers and how to work in alliance with the content providers and broadband Internet service providers. The program's success also served to clearly demonstrate consumer market acceptance

The Recording Industry Association of America (RIAA) met with us with acceptance as we demonstrated our product. The RIAA requested to evaluate our unique Audio encryption system and had found it to be very solid and were interested in using it on other media as well.

Unfortunatly Napster began in 2000 and created a percieved threat to the recording industry to the point that they refused to continue our partnership as now they needed to hold down the fort.