iTunes: Now you own it, now you don't

eBay mutes iTunes song auction | CNET News.com

This is the first instance that I have seen on the issue of consumers' digital media ownership. This matter is extremely important for the future of digital goods and will undoubtedly have some very important ramifications.

In this case a man who purchased a song at Apple's iTunes store wanted to resell it on ebay in much the same way that he would have with an old CD. Undoubtedly to his chagrin, he found out that it's no longer quite this simple.

Furthermore, consider this: if you purchase a CD for $10 and can resell it six months later for $6 then the real cost of the CD is $4. However if you purchase a digital copy (that you cannot resell) for $10 then the digital copy is 250% more expensive than the CD (considering its resale value). Sure there are consumer benefits to owning digital media but the value proposition _must_ be developed with the consumer in mind in order to become a viable commercial avenue.