Archive for: music
Spotify currently boasts 7 million users, all of them in Europe. Not bad for a product that was only released in October 2008 – this figure does only relate to the number of people on their free service, but their £10 a month premium service is also gaining traffic at a remarkable rate; they had “more than 250,000″ premium users on 23rd Jan ‘10, and are now boasting 320,000 paid subscribers, (as of the 17th March ‘10), and increase of 28% in under 3 months, and an extra £8,400,000 a year into the coffers. Spotify still needs to up their percentages though, according to UMG’s [Universal Music Group's] SVP [Senior Vice President] Rob Wells [and they would know, because they've taken shares in the business], they need to have around 10%-12% of their users as premium subscribers [they're currently at about 5%] to have a viable business in the long term. This might change as more and more advertising dollars go online though – as both Spotify’s CEO Daniel Ek and industry analysts Kantar Media are saying:
[Table via TechCrunch's article on the same]. Other interesting facts are that 15% to 18% of the Swedish population use Spotify – and the Swedish music industry’s revenues are up, and that Spotify’s p2p based system is actually using more interwebs than the whole nation of Sweden. There are rumours of a Spotify set-top box and/or home stereo system, a bit like that Sonos thing, but running off your Spotify premium account.
Other signs of Spotify’s ambition came from comments about Apple – Ek described them as having a freemium model like Spotify’s, as everyone (in his opinion) downloads a lot of free stuff and then buys the stuff they really like on iTunes:
“The vast majority of people’s libraries are free from Limewire or trading through friends. And then there’s a small portion of tracks that they’ve bought… I really believe that if music could be legally available on any device that you wanted… I think the music industry would be radically bigger than what it is today”.
He also thinks that Apple will change the way that iTunes works, to allow remote access from anywhere to your iTunes music account on a cloud: “People want to share, to access independently. I think it makes a lot of sense for them to do something in that area.”
Everything Laura Marling touches seems to turn to gold. Her past romantic liasons have both preceded breakthrough musical success, first for ex-boyfriend Charlie Fink and Noah and the Whale, and then for current beau Marcus Mumford of the eponymous Mumford and Sons. She was also [ahem] instrumental in the rise of Emmy the Great, and modest initial success for her debut album ‘Alas I Cannot Swim’ has built into a devoted critical following and a growing fanbase. She’s now just days away from releasing a second album, and because she’s a smart cookie, she’s previewing it through the Times’ website here. If you like what you hear, you can pre-order ‘I Speak Because I Can’ on Amazon here. Imagine a young, less squeaky Joni Mitchell who could give Feist a decent bout in the song-writing ring and you’re pretty much there…
A report from business analysis firm Ovum says they think UK based Internet Service Providers (ISP’s) could bundle a silver bullet with their broadband contracts by adding a digital music service to their offerings. They argue that this would increase customer loyalty (Ovum call it reducing consumer churn), generate additional revenue per customer, reduce online music piracy and increase music industry revenue. They estimate (and they don’t say how they arrived at the figure) that direct revenues from selling music-inclusive deals could be around £103 million by 2013, representing 41% of 2009’s market.
Commenting on the report earlier this week the BPI’s Geoff Taylor said “It’s increasingly clear that it isn’t smart to be a ‘dumb pipe’. This report shows that the revenue potential of digital music services alone makes sound economic sense for ISPs.”
Fair enough. But take note that Universal Music Group sponsored the report, the same UMG that are desperately worried about the collapse of their revenues, and the same UMG that are invested in Spotify, a music service that could very easily sell premium subscriptions bundled with an ISP package. This is by all indications a great idea, and would go a long way to helping the ISP community appease big music – who are accusing it if not of complicity then at least negligence in the article of stopping access to copyright infringing sites and torrent trackers like the infamous Pirate Bay – but an awareness of possible bias might encourage conservatism when looking at Ovum’s estimated numbers. There are a lot of solutions vying for the fast growing digital music dollar, it’s a market in which we’re currently diversity and innovation, and a big move like the one the BPI are advocating could seal the future of music online.
Can music streaming ever be a viable alternative to hard copy and download music sales? WMG’s Edgar Bronfman has his doubts, and looking at some of the figures being published in the media they might seem reasonable. Increases in the number of users on services that provide on-demand music streaming (where you pick the track you want to hear like MOG, Spotify, and Grooveshark) correspond to decreases in music sales, while increases in use of radio’ streaming services [Last.fm, Pandora] seemed to drive more sales. There doesn’t seem to be any mystery as to why this might be; Spotify’s and MOG’s users no longer have any reason to buy music from other sources once they’re signed up (particularly as they can put their playlists on their iPods and other mobile devices if they buy a premium account), while Pandora and Last.fm’s customers have no guarantee of getting a particular track on their playlist again, so they have to buy it to hear it whenever they want. This might seem to be an open and shut case for the record labels; one service drives sales, while another cuts revenue – but it’s not quite as simple as that. Spotify has massive customer appeal, as the hordes that try and sign up every time they re-open user registration prove, and it also drives a lot of interaction with listeners; according to Spotify’s own figures the average use playlists around 15,000 tracks. The vast majority of Spotify’s users might be on the free-to-listen ad supported plan, with only single figure percentages signed up to their £10 a month premium package, but it’s clear that the proposition is incredibly attractive to consumers. The premium users represent a healthy annual income for the record labels to share with the platform; £120 a year is not an insignificant spend, and the potential for fledgling on demand platforms to increase their advertising revenue so that even the non-paying customers are generating profits for the record labels is proportional to the platforms’ desirability and popularity,
On demand services are what the consumer wants, and are proven to reduce the incidence of file sharing and online music piracy, something that unequivocally costs the music industry. Cutting off support for such services would surely drive a proportion of users back to illegal, non-revenue-generating, methods of consumption. Assessing the profitability of on demand against radio streaming will have to be done over the coming years as the platforms mature and adjust their business models, but it seems unlikely that killing off the most eagerly recieved of the net’s music biz babies just as they’re getting established would be a rational strategy for the industry.
For our part, we’re seeing tangible revenues come back for our artists from on demand services, and we’re happy to be able to help independent artists get music up on Spotify and in other online stores.
The Director-General of the BBC has come under a lot of fire this week for his proposals to axe two radio stations and drop a lot of content from the website in order to redirect funding to improve the quality of programming across the rest of the BBC’s network. The stars of music and media have been laying their scorn on the DG’s plans, and the vast bulk of comments on the “putting quality first” blog post he put up on the BBC’s site were resoundingly negative, chastising him for contradicting himself by taking down some of the best, highest quality content, and defending what are clearly their own favourite services.
For my part I can’t help feeling that any announcement of cutbacks is going to provoke complaints from the people who are negatively affected. There are definitely great programmes on 6 Music and the Asian Network, but if the stations are to be closed, there’s no reason the good bits can’t be cherry picked and put on the other stations with a broader reach, swapping out for worse shows, gaining listeners and improving the quality of service for the great unwashed that haven’t discovered the newer stations, or simply don’t have DAB radios. That said, there are certainly other places the budget could have been cut from, Graham Norton’s salary, for one.
A leaner, sharper BBC that provides an alternative to, instead of adding to the morass of commercialised drivel on the increasing number of other stations is something that I fully support. Whatever your views, Auntie is listening; you can log into the BBC Trust’s website and contribute to their public consultation here.
The BBC is reviewing its channel and programming lineup across all media, and looks set to cut some TV, Radio and Web services to focus its budget on making “fewer things better”. The highest profile services in line for the axe are digital/online only stations 6 Music and the Asian Network, with teen-aimed services Blast and Switch also in the firing line. The Corporation is also looking at cutting chunks out of its main web services, dropping sections with poor online audiences wholesale to reduce costs. The narrowing of services is aimed at freeing up more of Auntie’s budget to be focussed into the content on the remaining services; making less, but better content.
Strong feeling is evident among the Asian Network and 6 Music’s listeners, who are relatively few in number, but passionate about saving their stations and have already started campaigns against the cuts. Their views are not shared by everyone; Peter Bazalgette, creator of Channel 4’s “Big Brother”, applauded the cuts, and called for the BBC to retreat from more programming areas to make room for independent production companies, who have been hard hit by the recent recession. Mark Thompson conceded that some of the audiences, particularly the Teen sector that Blast was aimed at, were being better served by Channel 4 and other independent and commercial providers.
The BBC has struggled with its public service remit over recent years, trying hard to find a balance between its need to create unique, informative and educational programming as per its charter, and calls to justify the license fee with which it funds itself by making more entertainment programmes with a wider appeal. In this blogger’s opinion, a refocussing on excellent rather than broad programming is a very positive step, and a return to the values that make the Beeb so precious a national treasure.
We’re big fans of Fink, one of Ninja Tune’s artists – if you are too, then you’ll be interested to see that he’s got a free, previously unreleased download of a B-side track that didn’t make it onto ‘Sort Of Revolution’ up on his site at the moment. You will need to swap him your email for it though…
Not to be outdone by streaming competitors Spotify, who are rumoured to have gained a new funding partner (and consultant) in the form of Napster/Facebook founder Sean Parker, MOG have announced second round funding of $10,000,000 dollars, which they plan to use to take the platform into Europe, as well as funding Stateside expansion. As things stand, the two competitors are entrenching in their home territories, but the date of their confrontation on one side of the Atlantic must be drawing closer, even though no dates have been mentioned by either team. MOG’s monthly subscription is less than half the price of Spotify’s, but Spotify has major label backing, plus a vocal and passionate fanbase. Pandora are keeping their heads down, and quietly getting on with dominating the internet-radio and car dashboard scene, but the clash between these two will likely define the major player in on-demand streaming. The future of this type of music consumption is far from gilt-edged, however, as Spotify are still struggling to up their paid (£9.99 a month) subscription rates to supplement their ad-funded service, while MOG are operating at about a 17% conversion rate from their free trial to a $5 a month subscription. Whether either of these approaches will be successful enough to fund them in the long term remains to be seen, but given the high level of uptake, there is certainly a market for on-demand. Who gets to service it is currently being decided.
The absolute best/worst of stadium and dad rock for you this week. It’s probably best to listen to this over your headphones, unless your co-workers have a good sense of humour, or are fans of falsetto, hair dye, facepaint and massive, massive guitars. The worst thing about it is that it’s brilliant:
Boston: More Than A Feeling
UFO: We Belong To The Night
Rainbow: Since You Been Gone
Journey: Don’t Stop Believin’
Asia: In The Heat Of The Moment
Guns ‘N’ Roses: Sweet Child O’ Mine
Bon Jovi: Livin’ On A Prayer
Toto: Hold The Line
Lynyrd Skynyrd: Sweet Home Alabama
Kansas: Carry On Wayward Son
UFO: Doctor Doctor
Kiss: Strutter
Alice Cooper: Poison
Scorpions, Berlin Philharmonic: Hurricane 2000
Feel like helping develop a new piece of sampling software? Maize are currently developing the Beta version of Maize Sampler 2, to go alongside their ‘Modular Studio Environment’ a VST and effect chaining/mixing shell. They’re inviting producers to download the latest version of the sampler beta, and use it for a couple of weeks before reporting back with feedback and information on any bugs you might find. Be quick though, the software’s license will run out in a fortnight’s time.
[Table via TechCrunch's article on the same]. Other interesting facts are that 15% to 18% of the Swedish population use Spotify – and the Swedish music industry’s revenues are up, and that Spotify’s p2p based system is actually using more interwebs than the whole nation of Sweden. There are rumours of a Spotify set-top box and/or home stereo system, a bit like that Sonos thing, but running off your Spotify premium account.
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