So here’s a whole new take on monetizing downloads. Nationwide, one of the UK’s biggest insurers, is offering a new home digital content insurance policy that covers the loss of any legally downloaded product – music, ringtones, games and films – on any device. It has been called gimmicky, and not least because you’d be very likely to have your music on both your iPod and PC, unless you dropped them in the bath at the same time. But by next year, it is likely that most of the UK’s big insurers will extend their policies to include the contents of iPods, laptops and phones as well as the devices themselves. Other UK insurers are already following suit.
Small print? Of course. To claim, you have to prove that you’ve made every effort to retrieve your data somehow, dig out every receipt for every download you’ve bought and if you wiped your own computer accidentally – forget it. Of course free legal downloads are a whole new thing – you won’t be compensated for the time it takes to reinstate your entire SpiralFrog collection, should someone walk off with it.
I just called the III and they don’t know of any company offering this in the US yet. But that has to be worthwhile add-on for download companies looking for a new revenue stream – and who isn’t?
Related: Universal Music Backs Ad-Supported Download Site Spiral Frog
This article originally appeared in MediaGuardian.