I’ve been following the work of Gerd Leonhard for a few years. His presentation at MIDEM 2012 was particularly eye-opening, especially where he talks about the impact of mobile devices on music. If you’ve not been following him, here’s an opportunity to get up to speed. When major record labels are lobbying Government for new laws on your internet use, it’s time to pay attention.
Nice post about my music-related work. Thanks Andy!!
It’s a safe bet that the wealthy median American consumer of the 2020s, 2030s, and 2040s will want to be entertained, and will be prepared to spend more on entertainment products and services than the median consumer in 2012, 2000, or 1980. And one way or another, a large fraction of that money will wind up in the pockets of musicians, authors, actors, and other creative professionals. Markets are unpredictable, so we can’t predict exactly how this will happen. But we should be pretty confident that it will.
Music is a much smaller and less significant part of many people’s lives than 10-20 years ago. There is more competition for our attention and the value of music has declined precipitously. This graphic shows the rise of digital against physical music, and the overall impact of piracy, widespread distribution and digital media on the music industry. The sad story is that overall the music business is shrinking. That is a fact that we all have to face. The silver lining in all of this may be on the horizon, but it cannot come soon enough for me. We have to do something to reverse the trend.
Among the bigger-name streaming services are Spotify, which uses a freemium ad-supported, desktop app-based model; Rdio, which takes a tiered, cloud-based approach; and Pandora, whose personalised streaming radio is also available on a freemium ad-supported model. There’s also Wimp, Rara, Napster, We7, Pure, Last.fm, Senzari, Grooveshark, Sony Music Unlimited, Songza, Mog, Samsung Music Hub, and Microsoft’s Xbox Music, to name a few. In total, more than 500 legal music services are operating across the world, together having registered over 13 million paying subscribers - a figure that jumped more than 65 per cent last year, according to the International Federation of the Phonographic Industry’s (IFPI) Digital Music Report 2012 ….
It’s all about access, not ownership. And Freemium. The music business needs to get this, or fold.
The music industry insists on being paid. But by doing so in such clumsy and badly implemented ways, they have destroyed any pleasure from listening to music and alienated countless customers. I tried to buy CDs, but Apple can’t copy them properly onto my PC. My PC can’t stream them reliably through my Squeezebox because of Microsoft and Logitech. No music subscription service I can access on the Squeezebox is any good at all.
Good piece - I do love Spotify, tho:))
Crosby, Stills and Nash have released an iPad app developed by Contendis that allows fans to subscribe to exclusive content, updates and premium fan features. Think online fan club without access to concert tickets. The band is calling it the first subscription-based iPad app for a recording artist to be approved for sale in the Apple App Store. The app is free to download. A subscription costs $3.99 per month or $39.99 per year and can be purchased within the app.
For some, maybe, Apps are the next CDs…?
Whereas Pandora, and many of its competitors, use a compulsory license to stream music to users, Apple is looking to forge direct deals with labels for more comprehensive and flexible licensing. In other words, Apple radio probably won’t ever tell you that you can’t skip a song. And unlike Pandora, if you want to listen to all Johnny Cash, all the time, Apple won’t fold in music that’s similar to Johnny Cash just to follow licensing requirements. In essence, it is expected to be the best internet radio ever. If real, of course.
Gerd comments: Apple knows that very soon, listening IS THE SAME as downloading - there is no real difference between radio and ‘buying a song’, very soon. Stay tuned.