The Tyranny of Choice

Have you ever noticed the immense amount of music that technology allows us to listen to? There are so many choices that it would be impossible to listen to every track out there in one lifetime. This is what a fellow blogger likes to call “The Tyranny of Choice”.  In his blog, he points out simple facts – making relevant points regarding the future of music.

There is a noticeable imbalance in the music industry. There a numerous music services world wide. These music services are focusing on a small percentage of consumers as opposed to targeting a much larger market share. Streaming plays an important rule in the music industry and it has caused cd and download sales to decline. By targeting that small percentage of consumers, music streaming services are simply taking the downloading money and converting it into streaming money. This means the consumers are switching but not spending more. Larger target market is not necessarily being considered meaning there is just revenue transition rather than revenue growth in the music industry.

According to fellow blogger, there are three things to focus on that are predicted to shape the future of digital music – (1) Consumer Behaviour (2) Tech Companies Strategies (3) Income Distribution. Consumer behavior of the next music generation listeners and not the generation transitioning from downloads or cd’s will be the ones music services need to pay attention to. By understanding the next generation, the music services will be able to properly grow and evolve. Technology companies such as Apple, Amazon, and Google control digital music in one way or another. For this same reason, others such as labels and producers can focus specifically on the music while these companies strategize to focus on their own established goals which mostly involve product/service sales. It is a win-win. Finally, artists and songwriters have begun to pay more attention to income distribution. Although it may not happen overnight, the pressure to more evenly distribute this income is an important movement.

Music listeners may not be expected to spend money on downloads or cd’s in the future, however they are expected to listen to the numerous music choices available to them more than ever before. The Tyranny of choice will influence the way we all listen to music. This provides artists and labels with new opportunities though. Because of “the tyranny of choice” technology has created and will continue to create in the future, artists and labels must come together to create partnerships that will allow them to sell an experience – an unique music experience that they can both sell to the next generation listeners. To provide unique music experiences to listeners is what music has always been about so to focus on this same principle in the future despite how technology continues to change our lives is truly a beautiful thing.

To read the blog post and see charts that served as inspiration for this blog post, follow this link – http://musicindustryblog.wordpress.com/2014/09/29/digital-ascendency-the-future-music-forum-keynote/

Is Amazon working on a Music Streaming Service?

14.02.27-Amazon_Music

Amazon really seems to hit the ground running lately. First came the conjunction with Amazon Prime, a new video-on-demand service and a few days ago Amazon has announced the FireTV then, the counterpart of Apple TV. And apparently that was not all.

After Amazon released Fire TV, a streaming device for TV only a few days ago, now a contract indicates that in the next few weeks Amazon will also introduce a music streaming service similar to Spotify. While Amazon Prime customers currently can already stream movies and TV series for free , such an offer for music is still lacking at the moment.

Just like Spotify, Amazon might also offer a free  service in the streaming like the Spotify limited version and a premium subscription, which presumably would be a part of the Prime Offer. A contract between Amazon and the music label states suggests a deadline for the signature on May 1, 2014, which is a timely launch of the streaming service. Especially after the price increase Amazon Prime (of 29 € to 49 €) a music streaming service is another great incentive for customers to complete the Prime subscription. Amazon would therefore also make their own hardware (the Fire TV) even more attractive.

But even this leaked contract is real it’s no guarantee that Amazon will ever actually launch a streaming service. 

The contract, which publishers are being asked to sign by May 1, states the following:

“…If you provide a signed copy of this Agreement to us or our data manager that includes any changes, additions, or deletions (handwritten or otherwise), no such changes, additions, or deletions will have any force or effect…”

Here’s the full contract.