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Radio 2.0 (En & Fr)
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Rescooped by Nicolas Moulard - Actuonda from Online Business Models!

The Future of Music Revenues May Actually Not Be in Selling Music

The Future of Music Revenues May Actually Not Be in Selling Music | Radio 2.0 (En & Fr) |

"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."

Via Robin Good
Robin Good's curator insight, December 14, 2013 9:14 AM

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.

Rescooped by Nicolas Moulard - Actuonda from Online Business Models!

The Pros and Cons of Paid Content Models

The Pros and Cons of Paid Content Models | Radio 2.0 (En & Fr) |
Do Paywalls Change the Engagement Equation? - The Huffington Post


Jake Batsell seems to think so, saying that while advertising-driven models of digital journalism aim to maximize page views, when news organizations introduce online subscriptions "it reconfigures the benchmarks for success."


Which leads to the question: What are online readers willing to pay for digital content?


It's one of those complex issues troubling publishers, editors and reporters who have to worry about producing enticing content to compete with the plethora of digital fare, and, ensure the success of their revenue streams.







Via Lelio Simi, Robin Good
Robin Good's curator insight, October 4, 2013 12:42 PM

Paid Digital Content: The Journey Begins, a report by the World Association of Newspapers and News Publishers (WAN-IFRA), uses case studies to explain successes, failures and transitions news organizations are experiencing in attempts to get readers to pay for what they consume.

chen kc's curator insight, October 10, 2013 12:20 AM like this video content...