U2’s Bono claims in an exclusive interview with Time that his band is working with Apple to develop a format for interactive, multimedia music wrapped in DRM. But the music industry’s future lies in curated, customized streaming services rather than sales of products.
Apple is reportedly in talks to acquire Beats Electronics in a deal that would surely have as much to do with Beats’ new streaming music service as its line of electronics devices. But whether even the best streaming music service can turn a profit is still far from clear.
Halfway through this year, digital song sales are actually down 2.3 percent: 682.2 million in 2013, versus 698 million a year ago. Meanwhile, digital streams of music are up 24 percent.
Rhapsody has some advice for its competitors Spotify and Rdio: Don’t invest in splashy ads. Focus on featuring your service instead.
A Reuters report says Apple’s CEO and SVP of Internet Services paid a visit to the CEO of Beats Electronics, which is launching a music streaming service this year.
One thing that iTunes has over Spotify’s online music service is its wireless connectivity to the Apple TV. But it is actually possible to get the same kind of connectivity with Spotify, and use it from any room in your house. Here’s how.
UPDATED. Spotify U.S. is now in T-minus territory. A spokesperson for Spotify has confirmed that the popular European on-demand music streaming service will be available stateside on Thursday morning. GigaOM reported last month that Spotify’s U.S. launch would occur in mid-July.
The weekend passed, and we’re still talking about digital music. That’s because Om broke the story on Facebook’s music strategy. Talking to developers, he’s teased out Facebook’s ideas for a music dashboard that could support Spotify as well as other streaming music services, and offer another social layer for sharing, recommending, and commerce. There’s very little margin left over on 99-cent singles sales already – let alone one with Facebook’s 30 percent Credits cut. But I could imagine a try-before-you-buy plan for subscription services. And this strategy would likely free up Facebook from having to do royalty deals with the labels and publishers. Meanwhile, I like Pandora’s mass-market radio approach. It builds on existing music listening and buying patterns rather than trying to change consumer behavior, though I concede Pandora faces a tough royalties vs. ad revenues business equation.
Rdio, the social music subscription service built by Skype founders Janus Friis and Niklas Zennstrom, is one of the later entrants to the digital music space. But it’s working hard to catch up by tapping developers to make its service widely available.
Today, a music industry website revealed some startling financial about red-hot music service, Spotify. Using that and some other publicly available information, we have put together a revenue model that shows the company is having a spectacular 2010, at least from a revenue perspective.