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Roadmap Changes in Listening Trends Rise of Freemium Determining Competitors/Substitutes Artist/Industry Perspective Recommendations
Transitions in Listening Habits
Rise of Freemium Arising hand in hand with on-demand economy and
growth of streaming/instantly available media. Network effect shows tension between artists hoping
to expand reach from free listeners and wanting more royalty payments from subscribing listeners.
Struggle for profitability even with bulky ad revenue
Determining Competition/Substitutes User Flexibility and
diversity of features determine preference
Spotify – KKBox – Apple - MelOnSpotify KKBox Apple Music MelOn MusicUsers: 75M Active20M Subscribers
Users: 10M Active2M Subscribers
Users: 15M Active6.5M Subscribers
Users: 28M Active
Library: 30M Songs
Library: 10M Songs
Library: 37M Songs
Library: 2.6M Songs
Reach: 58 Markets
Reach: South Asian Region
Reach: 100+ Markets
Reach: South Korea
Subscription: $9.99/month
Subscription: $9.90/month
Subscription: $10/month
Subscription: $5.60/month
Valuation: $8.5B
Raised: $104M Est.: $2B by 4/2016
Est.: $2.1B
Artist/Industry PerspectiveRoyalties vs Exposure Tension “Market price” for
streaming services around $10/month boils down to minimal royalties for artists with large cuts going to record labels
Potential for services to provide multi-dimensional listening Apps compete on size of
library as well as secondary/tertiary features such as artist-created playlists and personalized messages
RecommendationsInternational Expansion
Better Use of Database
Artists and Royalties
Ad Revenue
Move to Wearables/Health and Fitness
Purpose of Record Labels
Critical Question:How can these global or local services best suit themselves to face these predicted changes in the music streaming industry?
Moving Forward Future of global licensing? Impact on radio?
Pandora vs Apple Music DJs vs Spotify “radio”
Use streaming data to isolate concert hotspots/seasons Accessing younger crowds or older crowds
Twitter/Instagram/Vine over Facebook Distrust in over-curation
Index Changes in Listening Trends Rise of Freemium Determining Competitors/Substitutes
Service Breakdown
Artist/Industry Perspective Recommendations Moving Forward
Works Referenced http://www.inside.com.tw/2013/09/27/kkbox-vs-spotify http://www.straitstimes.com/singapore/what-you-need-to-know-about-kkbox https://press.spotify.com/us/information/ http://www.billboard.com/articles/business/6576153/merlin-partners-with-asian-streaming-service-kkbox http://www.pivotl.com/2015/09/25/5-global-music-services-investors-are-tuning-into/ http://s0.thejazzline.com/tjl/uploads/2015/03/nielsen-2014-year-end-music-report-us.pdf http://static.trustedreviews.com/94/0000334bf/8297/spotify.jpeg http://iphone.three.com.mo/public/eng/images/4Gs/3services/icon_kkbox_l.jpg http://www.idigitaltimes.com/apple-music-android-release-date-app-launch-window-could-be-revealed-september-iphone http://timerichworryfree.com/5-best-ways-to-get-your-music-heard-online/ http://logok.org/pandora-logo/ http://zuriapps.com/wp-content/uploads/2014/11/8tracks-logo.jpg http://www.theguardian.com/technology/2015/jun/10/spotify-apple-music-75m-active-users http://techcrunch.com/2013/04/29/spotify-may-need-to-be-more-asian-to-dominate-region/ http://www.macrumors.com/2015/06/10/spotify-75m-active-users-526m-funding/ http://www.snepmusique.com/wp-content/uploads/2015/04/Digital-Music-Report-2015.pdf https://www.techinasia.com/taiwans-kkbox-spotify-asia-spotify-existed http://asia.nikkei.com/magazine/20140814-The-odd-couple/Business/Music-streamer-KKBox-keeps-its-cool-even-as-competition-heats-up?page=2 https://www.pehub.com/2014/08/kkbox-snags-104-mln-from-gic/ http://www.theverge.com/2015/11/17/9749050/pandora-rdio-spotify-tidal-apple-youtube-streaming-music http://www.macworld.com/article/2934744/software-music/apple-music-faq-the-ins-and-outs-of-apples-new-streaming-music-service.html http://www.theverge.com/2015/10/20/9572667/apple-music-subscriber-count-number-paid http://seekingalpha.com/article/3314495-apple-music-a-2-billion-run-rate-business-by-april-2016
Works Referenced (Cont) http://www.statista.com/statistics/321559/deezer-paying-subscribers/ http://www.billboard.com/articles/business/6836589/melon-south-korea-biggest-music
-subscription-service-acquired-kakao
http://www.reuters.com/article/us-kakao-m-a-loen-ent-idUSKCN0UP01620160112 http://techcrunch.com/2015/12/01/spotify-claims-streaming-music-throne-worldwide-b
ut-pandora-is-still-top-service-in-u-s/#.bzbrigr:c4RL
http://www.upi.com/Business_News/2015/12/01/Spotify-named-most-popular-music-streaming-service/8211448983691/
http://taylorswift.tumblr.com/post/122071902085/to-apple-love-taylor https://encrypted-tbn2.gstatic.com/images?
q=tbn:ANd9GcSxJKrz4eIY0AifGzCSudklu6yysUzMwptslKvPevIp4c8mtw_L
