Digital Ripping Service Offered to Dealers
Complementing the rise in digital media servers and hard drive portable players is a potential consumer headache—time spent ripping a massive music collection. At least in the opinion of Jeff Tedesco, CEO and Founder of Ready To Play, a Palo Alto company that is working with retailers and integrators to offer it's service of encoding music files for consumers.
"For the retailer it doubles the price of the ticket," says Tedesco, who explained the Ready To Play has been offering its services to consumers via its web site, but now is extending its reach as a service sold in the retail channel. Tedesco sees a larger potential for growth of his business at retail and has been working to sign up partners. Though he would not comment specifically, he says that in the next month the first round of retail partnerships will be announced, and that his company is working with national and independent dealers, as well as custom installers.
The idea is to offer the service as an add-onto the sale of digital media servers or portable players. The dealer makes money by getting a cut of the sale for the service, which is approximately a $1.10 MSRP per CD (prices drop as the number discs in the CD collection increases). Retailers can sell the service through either two models: direct or referral. Under the direct method—the more lucrative of the two—dealers selling the service handle the shipping and logistics of sending the customer's CD collection to Ready To Play, who does the actual encoding. The referral method involves a placing a sticker on the boxes of digital media server products and including an order form that consumers can fill out and use to send collections to Ready To Play on their own. A code on the form indicates the dealer of origination, who is then compensated for the referral.