12/24/2023 0 Comments The next big thing music![]() The monthly subscription fees range from EUR 4.99 per month for unlimited but desktop only versions to EUR 9.99 per month for a full premium services with online and mobile access. Some streaming services such as Rara, Musicload and Google’s All Access offer exclusively subscription models without any freemium models. Just Xbox Music offers an unlimited ad-supported freemium model. On Deezer the free music consumption is restricted after a year to two hours per month and on Simfy just 30 seconds of a song can be streamed for free after a free trial period of two months. After this period free music streaming is limited to ten hours per month. On Spotify music can be listened for free only in the first six month. This so-called freemium model is usually limited in time and bandwidth. In the ad-supported version the consumer gets the music for free. Interactive streaming services enable the users to choose songs without any restrictions from a vast catalogue of several million titles. Non-interactive services, thus, are mainly ad-supported with supplementary subscription which has not generated a significant amount of money until yet (more about Pandora’s business model can be read later). Hence, full streaming services such as Spotify has to be directly licensed to the owners of the master recordings, whereas for non-interactive webcasters such as US-based Pandora licensing is compulsory and the licensing rate is determined by the Copyright Royalty Board (CRB). The absence of interactivity, therefore, is the main criteria of distinction to music streaming services in the narrower sense that enable a music choice without any restrictions. These services, thus, are non-interactive, but personalised in its use. Therefore the program has to be restarted again. The playlists can be saved and shared with other users. Algorithms help to detect the listeners’ music taste to generate playlists. Non-interactive but personalised web radios such as LastFM, Pandora and Apple’s iTunes Radio provide a more innovative concept than conventional online radios. The number of GEMA licensed web radios decreased by even 17 percent from 1,697 to 1,410 from 2011 to 2012 (Goldmedia 2012). The web radio market in Germany, thus, slightly shrank by 1 percent for the first time. In 2012, 800 programs were closed down whereas 750 were newly established. The online web radio market is highly dynamic. Most of them are ad-supported, but the public radios’ online programs are also fee-funded. In addition, there are about 380 online radio stations operated by classical FM radios (simulcaster) with further 150 online sub-brands. ![]() ![]() 2,470 are just online-based radios, which broadcast mainly music, but also news, sports and other events as well as comedy shows. In Germany, market researcher Goldmedia (2012) counted over 3,000 web radios in 2012. Most of them are free of charge and thus ad-supported. Internet or web radios broadcast conventional radio programs online that can be listened without any interactive and/or personalised features. In the first part of this article the different services are put in a typology and then the business model of personalised streaming services are analysed to assess their economic potential. Is Streaming the Next Big Thing? – The business model of music streaming services In the relatively small Austrian music market, eight streaming operators offer their services to the consumers (IFPI Austria 2013: 13) – not counted are the myriads of Internet radios, video streaming platforms such as YouTube, TapeTV, Vimeo and Hulu as well as the cloud-based music services of Amazon, Apple and Google. Google, Apple & Co., however, enter a highly contested market. It is just a question of time when Amazon will announce the launch of its rumoured music streaming service. The market entry of Apple with iTunes Radio and Google with All Access underpin the relevance of music streaming. The music streaming market is currently the most dynamic segment in the music industry.
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