Fred Wilson, a VC with a popular blog wrote that he is looking for someone to help big media companies offer their content for free in 2006. For some reason, I just spent 30 minutes writing a lengthly reply on why I don’t think this can happen but also on the kind of online music business I think would do really well in 2006. Here’s my take on the subject:

It seems to me that the big hurdle here is that big media companies are not good early adopters of new business models. Media is a hit business. Execs take a lot of risks everyday when they produce new content. They cannot afford to also take too many risks elsewhere.

The only way big media will ever get to this point is through baby steps. Right now they are just trying to get comfortable with the Internet as a distribution channel. They are no where near ready to try such an unproven business model.

I think the companies to watch for in 2006 will focus on adding distribution outlets for content online. Such a company would be like Cafepress for online music and video. The company would negotiate the distribution rights with the big media companies for music and video and then provides an interface so anyone, small companies and even individuals, can create their own personalized music store.

As a blogger, you recommend music all the time. Can you imagine being able to send people to your own online music store so they can purchase and download the music right away and listen to it? I bet a lot of bloggers and small businesses would be very interested in creating online stores with their own specialty selection of music.

This would be great for the big media companies as well. Not only is this a business model they are familiar with (content creator->distributor->retailor) but it would be a great way to effectively sell their back catalog. Many of these stores would offer more eclectic mixes than you can provide in something like iTunes.

Anyway, I don’t know why I put this whole business model in a comment here, but I think the time would be right for something like this. If anyone is doing this, I’d like to know too. Maybe we could help you handle all of your email at Sproutit.com. :-)