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CES 2013: CEA Presents Consumer Attitudes Toward the Cloud

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January 7, 2013

Jessica Boothe, CEA manager of strategic research, presented the findings of her recently completed research “Cloud Computing and the Implications for Consumer Tech” at a Monday afternoon CEA Research Summit session. While the majority of online adults are using cloud resources, they overwhelmingly associate the term “cloud” only with storage and primarily use the resources for personal activities, rather than work. Continue reading CES 2013: CEA Presents Consumer Attitudes Toward the Cloud

Spotify Rival Deezer Launches Wide, Seeks U.S. Partner

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January 4, 2013

Heavy-hitting music-streaming company Deezer wants into the U.S. market in order to increase its overall market share. The Paris-based Spotify competitor launched a free streaming service in late December in more than 150 countries. The service currently allows users two hours of free listening per month on desktops and laptops, marking the first time the company has offered a free service backed by advertising outside its native France. Continue reading Spotify Rival Deezer Launches Wide, Seeks U.S. Partner

Digital Music Study: Is Spotify Detrimental to Music Purchasing?

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November 22, 2011
  • A recent survey of dedicated music demographics indicates access to music from services like Spotify, YouTube, Grooveshark and others significantly decreases the interest in purchasing across all groups except the least dedicated.
  • “Services like Spotify increase access, but also decrease spending in many situations.  Which means less money from higher-returning formats like iTunes downloads, CDs, and LPs,” according to Digital Music News. “But free access also includes a range of other services, including YouTube, Grooveshark, and various freebie competitors.  And all of these are sapping the juice out of higher-end impulse buying, once a music industry lifeblood.”
  • The recently released findings from NPD Group and NARM have already had an impact. “Following a study that claims that streaming music is damaging to record sales, a distributor representing more than 200 labels has withdrawn its entire catalogue from Spotify, Napster, Simfy and Rdio,” reports Huffington Post.
  • “As a distributor we have to do what is best for our labels,” STHoldings explained in a statement. “The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity.”
  • In a related All Things D story, Spotify announced it has new things on the horizon, but has yet to provide details. “In New York on November 30th, we are holding our first press conference to unveil the latest major development from Spotify — and a new direction for the company. The press event will be hosted by CEO and Founder Daniel Ek, along with special guests,” wrote the company’s PR unit.
  • All Things D speculates Spotify may be releasing a U.S. service to buy songs (already available in Europe) or an iPad app, but “it is courting the risk of overpromising” if these are the only developments to be announced.

Pandora Targets the Vast Majority Who Pay Little or Nothing for Music

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November 11, 2011
  • Speaking at the GigaOM RoadMap conference this week, Pandora CTO Tom Conrad suggested that more than half of Americans do not pay for music each year, while 40 percent only pay about $15 annually.
  • “Conrad revealed that his company aims to monetize the vast majority of listeners who pay little or nothing per year for music,” reports TechCrunch.
  • “While there are opportunities to build businesses on the 10 percent who are willing to pay more, Pandora plans to focus on monetizing the majority via advertisements. Other music companies might be wise to target the non-paying segment as well.”
  • Pandora is working to expand across multiple areas, including “in the home, the television, the living room, the bedroom, even embedded above the ice maker on your refrigerator,” and in your car.
  • Conrad doesn’t feel threatened by Spotify’s success. “I see Spotify as largely complementary to what Pandora does,” he said. “Spotify’s CEO Daniel Ek says he thinks Spotify is the future of the record store, and that Pandora is the future of radio.”

Media Consumption: Redefining Content Ownership in a Digital World

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November 8, 2011
  • An increasing number of consumers are switching to digital content for movies, music and books. The approach has benefits, including convenience and cost, but may also be leading to a loss of rights and abilities we’re accustomed to as consumers.
  • Fortune writer J.P. Mangalindan expressed concerns that systems such as Amazon’s new lending library would change the meaning of ownership since users would be relinquishing actual ownership of content in favor of a rental model.
  • The ability to stream digital content online has led to the same kind of transformation. Services such as Spotify and Netflix have allowed users the freedom of streaming content anywhere, and have made subscribing to such a model affordable and convenient.
  • GigaOM raises an interesting concern: “Apart from our simple human need to own and collect physical objects, however, there’s also the way that renting changes our legal relationship to the content we are consuming. Amazon has shown the downsides of this in the past by actually deleting copies of e-books from people’s Kindles remotely after a complaint by the rightsholder — and those were copies that people had actually bought, not rented.”
  • If we move closer to a streaming, rental-style model for all content then perhaps consumers would eventually prefer a short-term license to use content over actually owning it. But what if Netflix or Amazon decide to change their terms of service? “What if companies decide you no longer have the right to watch certain TV shows or read certain books?”

Google to Link New Music Download Store with its Social Network

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October 26, 2011
  • Google’s music download store is expected to link with Google+ within the next two weeks. However, the service may prove disappointing if the company cannot secure deals with the four major music labels.
  • Tentatively named Google Music, the service would follow in the footsteps of Spotify, which earlier this fall linked with Facebook to promote its music service.
  • The Google+ integration would allow users to recommend songs to Google+ contacts, who could then listen to those songs once for free. MP3 downloads would then be available, most likely for 99 cents each.
  • Music labels have shown hesitation about the service’s propensity to allow piracy, in addition to the lack of revenue for record companies, as the music locker is free.

Spotify Reports Significant Losses, Despite Increase in Subscribers and Revenue

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October 12, 2011
  • Streaming music service Spotify, which recently partnered with Facebook, saw its revenue more than quintuple last year. However, the British company still showed losses totaling $42 million, an increase from $26 million in 2009.
  • “Spotify’s performance has been closely monitored by the music industry, which sees it as a kind of litmus test for the viability of digital music by subscription, which pays labels each time a listener streams a particular song,” reports The New York Times. “That system brings in lower royalties per song than downloads, but with a large enough listener base could in theory bring in substantial amounts.”
  • Spotify subscriptions cost about $10 to $15 per month and includes an ad-supported free version. Daniel Ek, Spotify’s chief executive, recently announced that the service had reached the 2 million mark with paid subscribers, although there are believed to be more than 10 million total users.

Spotlight on Spotify: Facebook Integration, Radio Feature, Impact on Piracy

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September 30, 2011
  • Spotify has been drawing a great deal of media attention this week, more so than the growing number of other streaming music services.
  • Since the company announced its partnership with Facebook at the recent F8 event, Spotify has gained more than one million new users, despite the public outcry from those who question limiting the service’s signup to Facebook users only.
  • In response to concerns regarding Facebook’s media-sharing philosophy, Spotify released a new update that enables users to access the Facebook app without sharing their listening habits, reports Digital Trends. This may be good news for subscribers not happy with the recent announcement regarding Facebook integration — and could potentially serve as a model for how others offer access to services via social networking.
  • In related news from The Hollywood Reporter, Spotify recently released a radio feature in the U.S. that has long been available to European users. Radio will be accessible on the desktop client, but not on the Spotify mobile app. The add-on is reportedly in no way a Pandora killer, due mainly to its lack of mobility and attention to detail.
  • Additionally, Digital Trends reports that Spotify may be having a significant impact on music piracy. Illegal downloads in Sweden have reportedly dropped 25 percent since Spotify launched there in 2009. “Here in the U.S., Spotify isn’t the only option — and it may not even be the best, depending on user preference. Pandora, MOG, Rdio, Grooveshark — the list goes on,” indicates the article. “We don’t yet have numbers to show how these services are affecting music piracy in the U.S. But we’d put our money on them having a similar effect as Spotify is having in Sweden.”

Zuckerberg Vision of Sharing Everything We Do Online a Terrible Plan?

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September 26, 2011
  • Farhad Manjoo, writing for Slate, offers a compelling counterpoint to Facebook’s updated “share everything with everyone” philosophy.
  • The article suggests that Mark Zuckerberg’s vision for Facebook’s newly-designed profile feature (“it’s called Timeline, and it’s beautiful”) involves encouraging sites to develop social apps within Facebook, a grand vision that could dramatically change our digital lives. On the surface, this sounds like a fascinating idea, but there may be problems that evolve from too much sharing.
  • “If Facebook’s CEO has his way, everything you do online will be shared by default,” explains the Slate article. “You read, you watch, you listen, you buy — and everyone you know will hear all about it on Facebook.”
  • The article uses Spotify, Netflix and Hulu to illustrate Zuckerberg’s concept of “frictionless” sharing: “What he means is that I don’t have to bother with the ‘friction’ of choosing to tell you that I like something. On Facebook, now, merely experiencing something is enough to trigger sharing.”
  • Manjoo does not have privacy concerns or hesitation regarding Facebook’s financial gain based on his personal information. However, the author believes that the “nightmare” of “frictionless sharing” is more about Facebook killing taste. He believes that Zuckerberg is essentially lowering the bar by providing an all-access pass to things we don’t necessarily share with everything because they aren’t worth mentioning in the first place (read: boring).
  • While Manjoo enjoys sharing and discovering new media via Facebook and Twitter, he fears the day these services no longer serve as tools for navigating recommendations once they are bogged down in minutiae.
  • “That’s why I welcome any method that makes it easier for people to share stuff,” he writes. “If you like this article, you should Like this article. And even if you hate this article, you should Like this article (add a comment telling your friends why I’m a moron). But if you’re just reading this article — if you have no strong feelings about it either way, and if you suspect that your friends will consider it just another bit of noise in their already noisy world — please, do everyone a favor and don’t say anything about it all.”

Will Licensing Deals Help Turntable.fm Compete with Pandora and Spotify?

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September 21, 2011
  • Turntable.fm, a rival music service to Pandora and Spotify, is negotiating with the four major music labels to license content. Turntable.fm is a social media site that allows people to share songs with friends and other online users.
  • The New York-based startup is looking to create a deal that would be unique and allow users to legally stream music internationally, but CEO Billy Chasen has not disclosed the details of the proposal.
  • “Both sides are super eager to get this done, and we’re getting closer,” Chasen said. “We take very seriously the music labels and publishers, and we want to make sure they’re with us.”
  • Turntable.fm, which launched earlier this year and requires users to log in via Facebook, currently has about 600,000 users. The startup recently raised $7 million from investors including Union Square Ventures, First Round Capital, Polaris Venture Partners, Benchmark Capital, Lady Gaga’s manager Troy Carter, and Maverick Records co-founder Guy Oseary.

Media Sharing: Facebook Expected to Unveil New Service at F8 Conference

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September 19, 2011
  • Facebook is expected to unveil a new service at its F8 developers conference in San Francisco on Thursday that allows users to share their music, TV shows and movies (for example, a user’s Facebook profile page would display the music being consumed to friends).
  • The New York Times suggests that Facebook has reportedly signed deals with Spotify, Rhapsody, MOG, Deezer and Vevo that may bring millions of new users to their sites. Some are responding by introducing new ad-supported services to lessen the “friction” for new users (however, Rhapsody will reportedly continue with its subscription-only service).
  • Related news has been reported via ETCentric in recent days…
  • More information is emerging about Facebook’s new music service (which may be called Vibes). TechCrunch reports that “MOG, Spotify and Rdio have of course already been widely reported as launch partners for ‘Facebook Music,’ but notably, Deezer, SoundCloud and Rhapsody are new names.” This is based on “interesting references” found in the HTML code of the various streaming services.
  • In addition to an anticipated new music service, reports are circulating that the social networker may announce plans for bringing Hulu and possibly Netflix into the fold. We’ll see what shakes out this week, but until then the news media is in rumor mode: “Real-time viewing parties? It’s possible. Just not confirmed,” reports Gizmodo. “But the deal keeps things interesting for Hulu pre-buyout, its backing providers having all but jumped ship and offering their own streaming services.”
  • ETCentric will have more later in the week following the conference. Stay tuned…

Internet Radio for Vehicles Set To Explode: Pandora Driving Demand

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August 24, 2011
  • The number of vehicles worldwide with Internet radio service is projected to grow from 168,000 in 2010 to 24 million in 2018, according to IHS iSuppli.
  • U.S. sales alone are expected to move from 149,000 to 10.9 million during the same period.
  • “The next several years will see an explosion in the use of in-vehicle apps in cars, driven by booming shipments of automobiles employing head units designed to integrate Cloud-based content,” says IHS. “These apps, whether built into cars or provided via connected mobile devices like smartphones, will provide a range of infotainment, entertainment, remote diagnostics and navigation services. Internet radio is expected to lead the in-vehicle app revolution.”
  • The study concludes that the following are currently driving demand: Pandora, iHeartRadio, Slacker and Spotify (and in the Cloud: Apple’s iCloud, Google Music and Amazon’s Cloud Drive).

Rdio for iPad App: Streaming Music Better Than Spotify?

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August 10, 2011
  • Rdio has released a free iPad version of its streaming music app. According to the Gizmodo review: “Spotify may be stealing all the hype and pub for streaming music services but let’s not kid around here, Rdio still makes the best music apps across any platform.”
  • The review raves about the app based largely on its selection, album art, social aspects and quality music player.
  • Users can listen via their iPad headphones or through other devices thanks to AirPlay support — a feature that particularly appeals to the staff at Gizmodo: “I always thought it was funny to use the iPad as your music player but when you think about it, Rdio + AirPlay + Big Honking Screen gives you the biggest remote control in the house for the best audio system in your house with all the streaming music not in your house.”
  • For a better look at the interface, the post includes a brief video demo.

Music Service Spotify Responds to Use of Tracking Cookie

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August 2, 2011
  • Researchers at UC Berkeley have found that digital music service Spotify is using a cache cookie method with ETags that still tracks when a user has ‘Private Browsing Mode’ enabled.
  • According to Digital Music News, the cookie technology “cannot be deleted, still tracks if the user blocks cookies, and even operates in browser stealth mode. In fact, if you try to delete this thing, the cookie dynamically regenerates.”
  • The cookie is powered by analytics platform Kissmetrics, which Digital Music News explains was also used by Hulu and others.
  • Spotify is reacting quickly, trying to head off a “Cookiegate” incident. “We take the privacy of our users incredibly seriously and are concerned by this report,” explained a Spotify spokeswoman. “As a result, we have taken immediate action in suspending our use of Kissmetrics whilst the situation is investigated.”

Spotify Sees Early Success with 70,000 Paid U.S. Users

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July 26, 2011
  • Billboard reports that Spotify has already reached 70,000 paid U.S. subscribers, one week after the streaming music service’s invite-only launch.
  • It’s too early to tell what the initial success will mean in the long term since the service’s closest competitors have been on the market for years (Rhapsody and Napster, for example, have more than 10 times Spotify’s number of paid subscribers but took years to get there).
  • Spotify currently has an ad-supported free option, but also offers two paid tiers that start at $4.99.
  • Paid subscriptions provide ad-free service, unlimited play time, and mobile device access.
  • In a recent review, Digital Trends found the service “to be the most well-rounded service out of Pandora, Spotify, and Grooveshark.”
  • In related news, licensing firm BMI announced it has completed deals with Spotify and Turntable.fm to provide some 6.5 million songs to the online music services.

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