Online Business Models
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Online Business Models
Web-Based Business Strategies and Monetization Models
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The Future of Music Revenues May Actually Not Be in Selling Music

The Future of Music Revenues May Actually Not Be in Selling Music | Online Business Models |

"Even as they have grown, streaming companies have encountered a stubborn problem: Music lovers will consume large amounts of music as long as it is free, but getting them to pay a monthly subscription has proved much more difficult."

Robin Good's insight:

People are more than happy to sign-up for music streaming services, but when it comes to pay for access, very few feel it is something they want to do.

Pandora has for example 70 million users, but only 3 have decided to pay for the Premium version of the service.

While most industry players are attempting to have music fans pay for higher quality audio options and a no-ads experience, it is likely that the future of music monetization will not be anymore in direct music sales.

"Several analysts doubt that streaming companies can attract enough paying customers with only recorded music, citing a sharp drop in music sales over the past decade and abundant free music online. And they say it will be difficult for them to survive on advertising alone."


The key to survival for music producers, whether large or small, may be indeed elsewhere.

"...some see these companies’ success as lying in a so-called subsidy model, in which music sales support another business with higher margins.

Apple, most notably, used low-margin music sales to spur demand for iPods, phones and computers.

Music is an accompaniment, to add to your jog, your workday, your prep in the kitchen,” said James L. McQuivey, an analyst for Forrester Research. “But it’s not something you’re eager to pay for if you don’t have to.

The likely outcome is, as it is already happening, that monetization will come from everything that ranges from events, to merchandising and to collector's items. 

Informative. 7/10

Full article: 

(Image credit: Woman listening to streaming by ShutterStock)

Luke's curator insight, December 16, 2013 6:10 PM

I think this will eventually succeed, once large online platforms like Beatport try it. It might take some time though.

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Music 2.0: New Business Models Examples - Future of Music Coalition (2009)

Music 2.0: New Business Models Examples - Future of Music Coalition (2009) | Online Business Models |

Thanks to Gianluca Abbadessa who pointed me to uncover this valuable four-set presentation from Kristin Thomson of the Future of Music Coalition, looking at emerging music business models and specifically at the issues of sales (where unsigned artists can sell their music), compensation of artists, and distribution what channels can be utilized for effective distribution.

Even if this presentation dates back to 2009 it still includes highly valuable examples, case studies, resources and references that are as valid today as three years ago.

The video playlist is made up of four video clips in which you can see the slides from the presentation and hear the voice of Kristin Thomson explaining them. In total the four clips have a duration of about 31 mins and they will play in sequence automatically.

Check out also these two excellent companion PDFs:

a) Digital Distribution 

b) New Business Models 

Highly Recommended. 9/10


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