More evidence of why music rental schemes (aka “subscriptions”) are a bad idea.
Virgin Digital, the online presence of the UK-based Virgin Group that owns Virgin Megastores, has announced that it has begun closing its doors in stages, beginning last week. According to a message on the site, the online music store has already shut its doors to new customers as of last Friday, and as of this coming Friday, it will cease selling individual tracks to current customers. Only subscribing members will have access to the site until their next payment is due or October 19, whichever comes first. After that, the site will cease to operate for both US and UK customers.
If someone signed up for Virgin Digital when it opened, they would have paid three years of monthly fees (over $200) only to wind up with nothing but memories.
When you add in the heavily restrictive DRM packaged with the rental plans, it’s no wonder that almost all subscription services are having financial problems.