Archive for: store
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.”
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.
It has been reported over at Techcrunch that UK music retailer HMV has announced at its AGM that they will be buying a 50 percent stake in online music retailer 7Digital for £7.7 million. The move looks set to give HMV a ‘great leap forward’ in digital, since 7Digital has been fleet of foot in pushing non-DRM MP3s, open formats and signed deals with tech rock stars like Spotify. CEO Ben Drury, CTO James Kane and other managers are staying on and will be joined by three more from HMV on the JV board.
HMV Group will now use the five year-old 7Digital as its sole supplier for “all of its existing digital operations” in the UK and Canada. 7Digital will also be used to build a new e-books and audiobooks store for HMV’s Waterstones subsidiary, an area previously untouched by 7Digital. HMV’s own effort, GetCloser.com, has bombed, so this deal probably couldn’t come soon enough.
It is great to see that HMV is actually trying new model and markets. It was even reported a month or so ago that HMV had signed their first ever band to a record label, The Boxer Rebellion.
A few days ago it was reported that eMusic has come to a deal with Sony to add their catalogue. However, there has been a lot of reaction from this new deal for eMusic, because this is the first major record label eMusic has added. Hypebot has a great preview of the service and then some interesting reactions that have been voiced on the eMusic message boards.
Jellybones: Thank you eMusic. Its been a good run here for me. I love emusic, been here over 5 years. But I can’t afford my tracks to be cut by 2/3 for the same price.
90 downloads will become 35. Sorry, not worth it for the selection. I can go buy a couple albums (maybe only 2 instead of 3) but I can get exactly what I want.
Kez RE: I feel sold out. It seems eMusic is enraptured with the dazzle of their future customer-trolls and have cast aside their loyal member base.
From the UK xtrev: As noted down in the bowels of the ‘Major label…’ thread, the new more expensive price plans have appeared on site today. Including Booster prices. Damn.
Don’t think I’ll be buying many more 50 track boosters at 20.99 UK pounds. That’s a HUGE increase over the previous 14.99. If this is an example of what it means to have major label content here, then frankly they can shove it.
btx: Except for very rare circumstances, I’m not particularly interested in giving my cash to the major labels, that’s why I come here. If it is going to cost me more for their presence [even if I should choose not to download their stuff], that may be the end for me.
d.w.: “Effective Jul 6, 2009, your plan will change to the new eMusic Plus plan which gives you 37 downloads for $14.99 every 30 days.
We’re sorry that we’ve had to retire your current plan, but we’re confident that you’ll find even more music to love among the many new additions to the music catalog. And of course, you can always choose a different plan by visiting the Plan Options page within Your Account.”
My current plan is (grandfathered) 65 tracks per month for $14.99. This means that your Sony deal results in a 100% per track price increase over what I’m paying currently.
I appreciate(?) that you’ll be adding a lot of music from major labels that I could frankly not give a crap about (Alicia Keys — really?), but literally halving the amount of tracks I get on my current plan is a bit much to take. I’ve been a subscriber since 2000, but I am seriously considering canceling at this point.
eMusic is one of our great partners here at RouteNote and I would have rather seen the service stay with the indie industry and not attach themselves to the major labels, but now it seems like there is a new opportunity in the market for another indie service.
RouteNote partner Amazon has launched their ever popular music store Amazon Mp3 in the UK. Amazon Mp3 contains over 5 million DRM free tracks. On an individual track basis, the store has variable pricing, with songs starting at 59p, but other categories for tracks costing 60p-69p, 70p-79p, and over 80p. Albums are more variable, although £6.49 appears to be one popular price point for new albums. However, I have noticed at the moment they are pushing out major track downloads for only £0.29.
Amazon Mp3 for the UK was launched on Wednesday of last week without any press although British-based music blog MusicAlly was the first to spot it.
The increased competition brought about by a heavyweight like Amazon stepping into the ring may already have had an effect on music pricing in the United Kingdom. MusicAlly reports that as Amazon MP3 launched there, Apple dropped its prices on key albums in the British version of iTunes, including those by Oasis and Fleet Foxes, to under $6.
The anticipation is now over, as music fans everywhere can now pay more for their favorite tracks on the iTunes Store. On Tuesday morning the iTunes store switched over to a variable pricing scheme with price points now at $1.29, 99 cents and 69 cents. This pricing model is aimed at increase the price of the most popular tracks on the iTunes store while at the same time decreasing the tracks that arent so popular.
Unsurprisingly, a number of top-ranked songs are now saddled with $1.29 tags. That includes the top-three most-downloaded songs, specifically “Boom Boom Pow” by Black Eyed Peas, “Poker Face” by Lady Gaga, and “Right Round” by Flo Rida. But a large number of popular tracks are retaining their 99-cent stickers, at least upon initial inspection.
There have been a lot of reports over the weekend about the demise of SpiralFrog. SpiralFrog was an ad supported music streaming and download service that never really took off.
Having raised as much as $12 million in VC and debt funding, the company made a splash in August 2006 (after 2 years in operations) when Universal Music made their entire music catalog available for free download through SpiralFrog, joined by EMI a month after. About a year after, SpiralFrog started handing out private beta invitations (what took them so long?)
Attorneys representing defunct music service SpiralFrog have notified investors not to expect any returns. Whatever money comes from liquidating assets will go to a group that loaned the company an “amount exceeding $34 million.”
Is this going to be the start of more ad supported music download and streaming services moving towards the deadpool? I can see Qtrax is going to now have a lot of trouble is this economic environment and Im sure they will be the next to be closing.
Nokia has announced that it will be launching it “Comes with Music” offering in Italy, Sweden and Mexico in the coming months. Nokia initially launched their Comes With Music service in the UK and Singapore and its already announced it will launch in Australia later this month.
The company has also announced three new music phones in its XpressMusic range: the 5730, 5330 and 5030. The first two of those will be Comes With Music handsets in selected markets.
Over at MusicAlly they have pointed out that the new U2 album (No Line On The Horizon) is currently on Amazon’s US Mp3 store for only $3.99. However, because we are based in the UK there is nowhere we can get this album for so cheap, until now. Tesco has taken the step forward and is now selling the new U2 album in a week-long deal for ony £3.97.
This shows that the digital music store price wars are about to heat up! However, you will notice that iTunes never seems to get into these price wars.
[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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