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.
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.
With most other businesses, if a supplier makes unreasonable demands, a retailer can turn to other providers,” wrote Michael Robertson, CEO and founder of MP3tunes.com, about the problems with the industry . “Since copyright law gives record labels and publishers a government-granted monopoly, no such option is possible with music. Digital vendors have only two options: Accept the terms or not include those songs in their offering.
Great piece. What a mess. Glad I have departed this industry.