When sitting down and writing most papers, all you can see is college
students with headphones plugged in. Me personally, I have yet to put any music
on my iTunes Library because I have a new computer and downloading all that
music would just take too long. So where do I turn? I turn to streaming music.
According to CNN, “five years ago, music consumers had to choose between buying a CD or
downloading the album. Nowadays, thanks to the rise of music-streaming services
like Pandora and Spotify, that choice is becoming whether to download music or
just stream it online” (CNN).
I don’t know about most of you, but I now
fall into the category of streaming over downloading. Where do you get most of your music? Where are you
listening to you music? Are you streaming or downloading? Even though these questions
are so simple, they actually hold a lot of weight now in the music industry.
So why has streaming started to take over? It’s pretty simple. It’s the
growth of music apps that are now out there. According to Music Week, “music app revenues on iOS and
Android grew by 77% in 2013, with Pandora topping the chart as the highest earning
music app in the world” (Jones). It is no surprise then that music sits as the
third biggest app category on the market. Some apps that we are use to hearing
about are Pandora, iHeartRadio, Shazam, iTunes Radio, SoundCloud and Spotify. “Pandora,
the internet radio service garnered 1.58 billion listener hours last month, up
from 1.39 billion in December 2012” (Jones). According to Spotify, in 2013 it
has had “4.5billion hours played, 1 billion playlist and 24 million users”
(Spotify).
Even
with all of these music apps available, there are more still to come. One in
particular that is on the rise is Beats Music. According to Jimmy Iovine,
Interscope Chairman, “he promises, (this
app) will combine the music-suggesting algorithm of a service like iTunes Radio,
the catalog breadth and depth of Spotify, the potential for discovering new
artists offered by Pandora, and the editorial voice of your favorite music
blog” (Anderson). Even though it does have similar qualities to other apps it
does have its own unique features. “Right Now” is a feature that Beats Music
has introduced and that they hope will be the next big streaming tool. “‘Right
Now’ is an option, which asks for a place, an activity, a person and a genre in
order to construct a context-specific playlist for the users” (Anderson).
Now
that there are more mobile devices and tablets, people are becoming more tech
savvy. Knowing the change in the way people want music, it is no surprise that
the music industry has surely seen some changes and will continue to. Apps are
not only used for streaming music, “but potential
for artists and labels to utilize apps as a tool to excite fans, generate
awareness, increase engagement and perhaps even result in increased overall
consumption” (Nielsen). When we live in a digital age, it is no surprise that
artists are trying to find another way to connect with their fans. That being said it is actually something that is
already in the works. Trent Reznor, who works with Beats Music, “says that a
future update will allow music artist to have an interaction with the people
who would be streaming their songs” (Anderson).
The music industry is for sure seeing some changes and
will continue to change as years go by. However right now, it seems that
consumers and artists are turning to apps and streaming. Consumers want
streaming for the convenience. You can have albums and playlists where every
you go, and share them amongst friends. For music artists, they are trying to
interact more with their fan bases. By doing this they can generate a larger
and more loyal fan base. It shows the fans that the artists care about them and
want them to be a part of their lives.
Will the
traditional ways of buying and downloading music ever truly go away? I personally
believe it will always be around, but it will be not as prevalent as it once
was. There is also nothing to say that in a couple years something better than
streaming will come out. We sure don’t know what will be the next big thing for
the music industry, but the apps that are coming out are what everyone is
focusing on. As more and more of these
apps come out, there is still one overall goal. That is to provide consumers
access to music over multiple devices and platforms. There is no one way
consumers want to enjoy their music. Some people will have massive collections
of music and some will have one playlist. It is not one size fits all system,
but it is a way to bring music to people and that’s what the goal is.
Work Cited
Imam,
Jareen. "Young Listeners Opting to Stream, Not Own Music." CNN.
Cable News Network, 01 Jan. 1970. Web. 21 Mar. 2014.
Jones,
Rhian. "Music App Revenues up 77% in 2013, Pandora Highest Earner -
Report."Music Week. N.p., 31 Jan. 2014. Web. 23 Mar. 2014.
"2013." Spotify
Year in Review. N.p., n.d. Web. 23 Mar. 2014.
Anderson,
Kyle. "These Guys Want to Reinvent Your Playlist." EW.com.
N.p., 17 Jan. 2014. Web. 23 Mar. 2014.
"GETTING
APPY: HOW ARTISTS USE MUSIC APPS TO ENGAGE FANS."Media and
Entertainment. Neilsen.com, 21 Nov. 2013. Web. 23 Mar. 2014.
Nick,
ReplyDeleteTo start, five years ago was right before we graduated high school and heading into college. I can’t believe that we only had a choice of buying or downloading the album then probably through an ITunes. I personally like Pandora but all of my roommates and teammates are now into Spotify and they have a cheep rate called premium and it is music everywhere for $9.99 a month. We would use it on road trips in the arena and on the bus as well. You don’t need Wi-Fi, no audio ads and no commitments needed. Other then that it is free on all mobile, tablet & computers where you can have unlimited music with any artist, playlist, genre….Just commercials. (We all hate ads and commercials) Facts from Spotify it self is that 4,500,000,000 hours streamed in 2013 and 1 billion playlists created so far. Also, 80% of all tracks on Spotify have been streamed and 20 % that haven’t been played not even once is just obscured ratings and percentage. (Spotify) I can only image this from being in the college world and knowing that almost all of Quinnipiac using it just think of everyone else using it around the World. This is what Spotify says “music for everyone.”
I also personally, stream over downloading just because I am someone that likes all different kinds of music and I only have a 16GB iPhone so the music takes up literally all of my memory. I could always upgrade to a higher GB iPhone or just buy a new iPod for strictly music but that I feel would be a waste of money and time all because of streaming music and the applications there are today. Yes, the applications do take up some memory but nothing like 5,000 songs plus. I LOVE my music!
Part 2
ReplyDeleteThe rate that you and Music Week have stated about how “music app revenues on iOS and Android grew by 77% in 2013, with Pandora topping the chart as the highest earning music app in the world,” (Jones) fall right into what I had said before about my personal streaming choice. It is just the least difficult and cheaper way and thing to do even if you do want to pay for Spotify monthly. Think about how much money you would spend and pay with ITunes songs now being $1.29 a song instead of 99 cents.
We are now college students so songs are not always in the budget and a necessity.
One thing that I found super interesting in your post was the new streaming app called Beats Music. That is something I have not heard and I am into my music I tend to think I am pretty faithfully. I have heard and use of a newer music-streaming app called, “8 tracks.” It is laid out in a unique way as well like Beats music would be. It goes by playlist so you don’t really have a choice of what artist or exact song you want to listen to but it is a created play list under whatever title/category you want to listen to. For example, you can listen to workout, love, party, beach, sleep, or it even goes as deep as slow/sad/upbeat/metal “love” or what ever genre you are feeling!
To end, I worry about the music industry myself due to all the technology and people that sit in front of computers all day everyday to conform and invent new and cheep ways to stream or download music. This being said they are also creating Apps that are not only used for streaming music, “but potential for artists and labels to utilize apps as a tool to excite fans, generate awareness, increase engagement and perhaps even result in increased overall consumption” (Nielsen). This is what will maybe keep the music industry going. I sure keep my fingers crossed and believe what you hope to see and think will happen (nick) and have it still be around in the future even if it is not as prevalent.
"2013." Spotify Year in Review. N.p., n.d. Web. 23 Mar. 2014.
"GETTING APPY: HOW ARTISTS USE MUSIC APPS TO ENGAGE FANS."Media and Entertainment. Neilsen.com, 21 Nov. 2013. Web. 23 Mar. 2014.
I definitely agree that the music industry is changing because of all of the new technology available to us. If we want to listen to any song, we can find it on multiple places on the internet. We then have the option to illegally download it, purchase it, stream it, or share it. It isn’t like the past where your only option was to buy the CD. These options affect customers, artists, music applications, music websites, and all of their employees. Like most aspects of the media industry, there isn’t a perfect solution to the “music streaming/downloading problem.”
ReplyDeleteApplications go everywhere with us, unlike a computer that you might not always have with you. As stated in, “Getting Appy: How Artists Use Music Apps to Engage Fans,” “As mobile devices become more sophisticated and consumers become more tech savvy, there is a clear impact on music consumption and therefore the music industry” (Nielsen). We are constantly listening to music on our smart phones. Whether the app is Pandora, Spotify, or Soundcloud, there isn’t just the option to play your own downloaded music. How is anyone making money if listeners don’t feel the need to purchase music anymore?
Like you said, according to “Spotify Year In Review 2013,” 4,500,000,000 hours of music have been streamed in 2013 and 1 million playlists have been made. You would think that Spotify has been one of the richest growing companies. You might think the same about Pandora especially with “Music app revenues up 77% in 2013, Pandora highest earner – report,” stating that “Music app revenues on iOS and Android grew up 77% in 2013, with Pandora topping the chart as the highest earning music app in the world” (Jones). This is not the case. “Pandora and Spotify Rake In the Money and Then Send it Off to royalties,” reports that “Pandora has never had a profitable year…both wind up paying a major of their revenue to music companies.[Spotify’s] cost of sales, which includes licensing fees and distribution expenses, was 229 million…on top of that it had more than $30 million in salaries and more than $30 million for various other expenses (Sisario). I think this is a huge issue that we must take into consideration when think of the increase of music applications. Top tier companies like Pandora and Spotify rake up the money, only to send most of it back to the artists. It is free for the customer, and therefore extremely popular. However, everything is at the cost of the actual streaming company. How is it possible for both the customer and company to be satisfied, without the artists losing money for their music?
Should music streaming be free? I think that there will always be a way to stream music, whether it is legal or illegal. For example, if Spotify or Pandora began charging, would users switch to something that is still free? People are not buying CD’s and this is seen in album sales for 2013. The article, “Timberlake’s album sold 2.43 million copies during the year, the only album to top the 2 million mark in 2013 and the lowest figure for the year’s biggest selling album since 1991” (Lewis). I think that with the advancement of technology and amount of apps, there might need to be a better deal between streaming companies and artists. Maybe the artists could work directly with Spotify or Pandora to raise their revenue?
Works Cited:
"Getting Appy: How Artists Use Music Apps to Engage Fans." Nielsen.com 21 Nov. 2013. Web.
Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
Lewis, Randy. "Justin Timberlake, Robin Thicke Post 2013's Top-Selling Album, Single." Los Angeles Times 3 Jan. 2014. Web.
Sisario, Ben. “Pandora and Spotify Rake in the Money and Then Send It Off in Royalties.” Media Decoder (New York Times blog) 24 Aug. 2012. Web.
"Spotify Year in Review 2013." Spotify. Accessed 21 Feb. 2014. Web.
When I am doing homework or studying I personally need background music to make me focus. I am right there with you Nick about not always using iTunes. My reasoning for not using iTunes is not for the lack of effort to download but the cost. I tend to turn to streaming websites like Pandora, iHeartRadio, Spotify, and others. I believe that many people do the same thing, especially people our age. “Pandora continued growing revenue over 50% year-over-year…we continued to improve monetization, which reflected in record RPMs on all dimensions of our business, and drop our first non-GAAP profitable year as a public company” (Pandora). Pandora is easily accessible on my computer and my phone making me like it even more. Pandora is “innovating across multiple technologies, devices and automotive platforms in our continuing efforts to reinvent radio and make Pandora available anytime, anywhere for millions of listeners” (Pandora).
ReplyDeleteI personally use my music outlet, Pandora, on my phone. I would rather use the app because it is on my phone, which can follow me everywhere rather then on my huge computer. The growth of music apps has definitely changed the music industry and even how artists promote themselves. “Mobile listening continues to evolve along with the technology, and we’ve found that streamers are eager for apps and mobile sites. People who listen to on-demand streaming are 44% more likely to download apps on their tablets than the average Internet user” (Getting Appy). Although I download these apps on my smart phone, I can understand these statistics based off of my own usage. “As mobile devices become more sophisticated and consumers become more tech savvy, there is a clear impact on music consumption and therefore the music industry. From these examples alone, we can see potential for artists and labels to utilize apps as a tool to excite fans, generate awareness, increase engagement and perhaps even result in increased overall consumption” (Getting Appy). The industry is changing but the good thing is that the artists understand that and can still make money off of their work in this new generation of music. “According to analytics firm App Annie, which measured revenues from Apple’s App Store and Anroid’s Google Play, music is now the third biggest app category for revenues, just behind games and social networking” (Jones). This actually surprised me because although I use Pandora on my phone daily, games and social networking is used every second of every day so being right behind them means streaming music is being used a lot. Just looking at Spotify’s statistics in numbers makes me understand how huge it really has gotten. In 2013 4,5000,000,000 hours of music was streamed and one billion playlists were made (Spotify).
I personally did not even know about the new app Beats Music. I usually stick to things that I know and when I like it I do not look for change. Pandora is great but after reading about the Beats Music app it shows that streaming music is still changing for the better. Jimmy Iovine is the Interscope Chairman and has a great sense of what the people want. He explains how he thought Pandora was the greatest thing ever, just like myself, but after an hour or two it wasn’t as magical. “Beats Music’s secret weapon is its editorial squad. A computer program will still do some of the heavy lifting, but users will also be reaping the benefits of human endorsement, especially when they indulge in the app’s ‘Right Now’ option, which asks for a place, an activity, a person, and a genre in order to construct a context-specific playlist” (Anderson). Although you can type in an artist or genre on Pandora, the same playlists get boring and repetitive. Iovine and Reznor’s idea was if you can produce something with the interaction of technology and humanity it will great something great. Iovine is into streaming but believes that it is unfair to artists and listening to music on a streaming outlet should be as much as buying a CD. I understand where he is coming from because this is their job to create this music we like and it is not fair that we get it for free and they do not get paid for their art (Anderson). On the other hand, I will admit, I will never pay for a CD or musical app if I can still get it for free somewhere.
ReplyDeleteThroughout my life there have already been three milestones in the music industry that are: tape cassettes, CDs, and now streaming. The industry has changed and is continuing to change as I get older. We are the generation where we want it now, we want it at our convenience, and we want it free. I agree with Nick that although we are listening to our music in a different way, buying and downloading music will still stick around.
ReplyDeleteAnderson, Kyle. "These Guys Want to Reinvent Your Playlist." Entertainment Weekly 24 Jan. 2014: 16-17.
"Getting Appy: How Artists Use Music Apps to Engage Fans." Nielsen.com 21 Nov. 2013. Web.
Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
"Pandora Reports Calendar Q4 and Calendar Year 2013 Financial Results." Business Wire 4 Feb. 2014. Web.
"Spotify Year in Review 2013." Spotify. Accessed 21 Feb. 2014. Web.
Luke Glockenberg
ReplyDeleteNick I have to agree with you on the fact that if I were to get a new computer that I would not want to sit there and switch all my music over to my new computer it would take way to long. Streaming music has become very popular especially in our generation. It can also be used easily by older generations that have Smartphone technology. For example my 86-year-old great aunt has Pandora streaming constantly on her Ipad. Personally I don’t know what I do more streaming or downloading. I think I download more just because I have an Ipod classic with 160 gigabits. My ipod can hold around 40,000 songs, which is a lot of music. I feel like I will never run out of room. However when I am at work in the summer my co-workers and me stream Pandora.
I also agree that streaming is more popular because it is on all types of smart technology platforms. If you see your friends using it usually you will go download it and start using it as well. Why not stream music? With Pandora I pick the artist I want to here and I get to listen to my favorite artist all day for free. All these streaming apps make it so easy to listen to your favorite radio stations as well. When I first got my Iphone I downloaded IHeartRadio so I could listen to Z100 wherever I went. Rhian Jones article from Music Week on app revenues wrote that, “Music app revenues on IOS and Android grew by 77% in 2013.” (1) This comes as no surprise to me even though I might download music more then I stream it. For example all the study groups I have been apart here at Quinnipiac University when I met with my groups someone would stream a Pandora station or the group would chose one to listen to as we put our project together. Jones goes onto write that Pandora topped the chart as the, “highest earning app in the world.” Its not just at colleges or in the United States that streaming has become very popular but all over the world.
Pandora isn’t the only streaming app. There is also one called Spotify. Spotify Year in Review 2013 writes that there were, “4,500,000,000 hours streamed in 2013.” (2) I mean that has toe be a huge year for the streaming company. I might use Pandora more, but man that is a huge year you can’t disagree. Also according to the review, “the largest playlist library belongs to a user in the United States of America with over 90,000 playlists.” (2) That is crazy and a lot of streaming. I thought my Ipod that could hold 40,000 songs was a little excessive but I can’t compare with that person.
The next question that will arise out of all these streaming apps is which is the best one? I can’t tell you right now but they are becoming competitive with each other it seems with all the stats of how many users each one has. It will be interesting to see as technology keeps advancing how many people will be downloading or streaming. Which one will be more popular in the coming years? That’s what I think of after reading your post Nick.
Works Cited
1. Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
2. "Spotify Year in Review 2013." Spotify. Accessed 21 Feb. 2014. Web.
Streaming music and internet radio is something that is clearly having an impact on the music industry and proposes companies in the music industry to think where they should put their focus. I chose to use my response as an opportunity to state what I personally think of the music primary streaming applications and consumers overall.
ReplyDeleteMy personal means of obtaining music throughout the years has for sure changed just like the majority of music listener. I believe it’s the fact that you don’t have to take the time to download by song or artist that drew me in. I enjoy having the ability to access any song or artist all in one place and also how I can create my own internet radio library for future listening. I used to be a consumer of Pandora radio but when iTunes radio emerged they grabbed my attention and have held it ever since. Pandora and iTunes are very similar in nature to me so what I believe the biggest factor that makes me choose them is how apple integrated it right into the music application on the iPhone. The convenience of having it as an option within’ the app next to your artists and songs on the bottom of the screen really makes the difference to me. It doesn’t seem drastic, but not having to open a separate app for my internet radio is an excellent feature to me. Having the ability to change from my music library to internet radio conveniently in one app makes my music listening experience more enjoyable. We live in a world of simplicity and convenience so until Pandora, Spotify or another music streaming application creates a something new, iTunes radio will continue to have me as consumer. Even though I feel this way, from the class reading and the statistics presented, consumers as a whole still choose Pandora. Music week made this clear when stating, “Music app revenues on iOS and Android grew by 77% in 2013, with Pandora topping the chart as the highest earning music app in the world (Jones 1).” I believe this is due to how much longer Pandora has been around and the massive user base they have accumulated. It seems as though Spotify is the queen of music streaming and iTunes radio unmentioned from what I read which I found surprising.
I enjoyed reading about your reference and research to the new Beats Music application because I recently downloaded it and gave it a shot. I think the “Right Now” feature is something that may have the ability to change the game and allow for beats to be a prime music streaming application. I had first-hand experience with it before and really did enjoy the set-up, functionality and “Right now” feature, but disliked how limited you are as a free user. You are limited by being allowed to use the app as a free user for only 7 days and then have the only option of purchasing it or not. I think this will drive consumers away because people like free which is why Pandora and iTunes do so well.
What I got took from reading your post is that music streaming isn’t going anywhere and is only on the rise and may make purchasing music obsolete. With Pandora still drawing in the majority of users they still rein champion of music streaming, yet I would like to see what the future hold for the Beats Music application and music streaming as a whole.
Works Cited
Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
Sisario, Ben. “Pandora and Spotify Rake in the Money and Then Send It Off in Royalties.” Media Decoder (New York Times blog) 24 Aug. 2012. Web.
Nick, you make many valid points regarding the streaming and downloading of music. It’s quite fascinating how, over the last few years, the music industry has changed. I remember a few years ago, I was still purchasing CDs, and now I stream and download all my music. The rise of music-streaming services makes it easier to listen to your favorite artists for free. Services like Pandora and Spotify have seen their popularity exponentially rise due to their convenience. Unlike you, Nick, I prefer downloading over streaming, but I do appreciate both. I like downloading because I can put the music on my iTunes and then my iPod. This works for me since it helps having the songs I want to listen to at the moment when I am working out or casually listening to music. As good as streaming is, the one problem I sometimes have with it is that I don’t always get the songs I want to listen to especially when using Pandora. One thing for sure is that streaming and downloading have taken over in recent years due to the number of music apps on the market. Music app “revenues were up 77% this past year,” and with smartphone sales increasing, that number could potentially rise this year. (Jones)
ReplyDeleteWe are living in a tech savvy age where consumers want everything as easily and as conveniently as possible. With more people getting smartphones and tablets, it makes streaming and downloading so much easier. Before I had my iPhone, I relied on buying CDs and occasionally downloading music if I could. At first thought this innovation would seem like a problem to a music artist, but they have actually utilized it in profitable ways. Artists are now using apps to connect with their fans, as well as easily endorse their music to the public. This is a genius tactic since it has the ability to generate positive awareness for the music artist and possibly increase sales. In the article, “Getting Appy: How Artists Use Music Apps To Engage Fans,” Nielsen states that apps have the “potential for artists and labels to utilize apps as a tool to excite fans, generate awareness, increase engagement, and perhaps even result in creased overall consumption.” (Nielsen)
The music industry is making wholesale changes and it really wouldn’t surprise me to see another new innovation take the place of streaming in a few years. With the rise of music streaming, do you think the apps will stay free? It is something to ponder. I believe a lot of the popularity is connected to the fact that most of these apps offer free music. I believe the traditional ways of buying music will always be around even though they are quickly losing popularity. Many people believe in buying their favorite music artists albums to support them. At the end of the day, I personally believe there are too many ways for consumers to enjoy their music. With that being said, streaming and downloading may be the primary choices for now, but innovation is always on the horizon.
Work Cited
1.) "Getting Appy: How Artists Use Music Apps to Engage Fans." Nielsen.com 21 Nov. 2013. Web.
2.) Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
Nick,
ReplyDeleteI completely agree with your post that music applications have heavily impacted the music industry. It is clear over the past couple of years, music applications have completely become an integral part of the music industry. I would definitely consider myself a music person, but find myself operating much differently when it comes to music. I, like you as you mentioned in your post, have a relatively new computer. My old computer crashed and my entire library of over five years of music was gone. Surprisingly, I barely even notice. With applications like Pandora, video-streaming sites like YouTube, I have access to virtually every song in existence right through my digital devices.
The music app has definitely revolutionized the music industry by capitalizing on the mobile user. These applications are very successful, and it’s due to the convenience of listening that they offer. Streaming has infiltrated almost every aspect of the media industry, from television and film to maybe even video games, streaming is everywhere. But it is arguable that music was what streaming was first utilized for.
These music applications are growing at a very fast rate. “Music app revenues on iOS and Android grew by 77% in 2013, with Pandora topping the chart as the highest earning music app in the world.” (Jones) They are finding their place in the app market as part of a certain set of app essentials, which only solidify their places as successful and useful music applications. Everyone knows the name Pandora, or Spotify but pretty soon I think that these apps will exceed their status as mere applications and transcend into becoming tools for those in the industry to use to their benefit.
The digital revolution has hit the media industry hard, and I think the music industry took the worst of it. They have had to totally reorganize how they sell their product. CD’s aren’t really relevant anymore. Instead all music is accessible online. With things like LimeWire and napster promoting free file sharing, music seemed like it was going to be free forever. But once those sites shut down, their emerged the music applications, which acted in a similar manner. Spotify is like the Netflix of music.
Music applications will grow to become more and more relevant as time goes by. According to Nielson, “As mobile devices become more sophisticated and consumers become more tech savvy, there is a clear impact on music consumption and therefore the music industry.” The younger generations will continue to engage with digital technologies, and as fluency in navigating technology becomes standard to the average person, it is like that these apps will be more fully realized and used by the general public.
Works Cited
"GETTING APPY: HOW ARTISTS USE MUSIC APPS TO ENGAGE FANS."Media and Entertainment. Neilsen.com, 21 Nov. 2013. Web. 23 Mar. 2014.
Jones, Rhian. "Music App Revenues up 77% in 2013, Pandora Highest Earner - Report."Music Week. N.p., 31 Jan. 2014. Web. 23 Mar. 2014.
Nick, I personally do not have iTunes. I do not have the patience to download music so I turn to other ways to stream music. I agree that the questions of how one gets their music hold a lot of weight in the music industry. For every single way there is to listen to music, they all affect the music industry.
ReplyDeleteIf it weren’t for the rapid growth of music applications, I probably would still only use YouTube to listen to the music that I like. Thanks to all of these applications, I am now able to listen to music on my phone compared to constantly having to go on my laptop. “Music app revenues on iOS and Android grew by 77% in 2013, with Pandora topping the chart as the highest earning music app in the world.” (Jones). Pandora continued growing revenue over 50% year-over-year…we continued to improve monetization, which reflected in record RPMs on all dimensions of our business, and drop our first non-GAAP profitable year as a public company” (Pandora). These statistics shows how much growth there has been with music applications. Pandora happens to be my favorite application. This is probably because I am a big fan of the radio. The idea of Pandora is genius in my opinion. Pandora is “innovating across multiple technologies, devices and automotive platforms in our continuing efforts to reinvent radio and make Pandora available anytime, anywhere for millions of listeners” (Pandora). Reinventing radio is something I never thought would happen. I say this because radio is very “old school” and I never thought that even with all of this new technology that could happen.
The rapid growth of different ways to download and stream music has caused a major decrease in the traditional way of buying and downloading music. Also, they are going to keep coming out with more advanced music applications. However, no matter how advanced the applications become, I do not believe we will ever loose site of the traditional way of buying and downloading music. This is a similar situation to the different outlets we have for watching out TV shows. Will Cable television ever vanish? The answer is no. We will never loose the traditional ways we had to watch television or listen to music. They will always be there, but they certainly cannot compete with all of this new and more advanced technology.
Artists are going to make their money one way or another. If its not concerts or iTunes, it’ll be something else. I don’t believe that all of these new music applications will ever significantly hurt any artists. Can the multiple ways of downloading and streaming music for free have an impact? Yes, but nothing significant. Nick I agree that artists are trying to interact more with their fan base. More interaction leads to a more loyal fan base and it is a great marketing strategy as well.
DeleteWork cited
Jones, Rhian. "Music App Revenues Up 77% in 2013, Pandora Highest Earner." Music Week 31 Jan. 2014. Web.
"Pandora Reports Calendar Q4 and Calendar Year 2013 Financial Results." Business Wire 4 Feb. 2014. Web.
Nick, I think that you picked a very interesting topic. It’s based on a very open-ended subject, and as somebody who has been a music lover throughout my entire life, I feel as if I can easily relate and respond to your blog post. Personally, I have been an avid iTunes user for about ten years now. Since I was in middle school, I have used the same iTunes library on my computer, although it has certainly expanded quite a bit since then. I am constantly adding new songs, whether through online downloading, iTunes purchases, or from actual albums I own from the past. But that is not to say that I do not still stream music via the Internet and apps such as Pandora quite often as well.
ReplyDeleteOne of the quotes that you used from the readings did not surprise me at all. I am well aware of CNN’s statement that “five years ago, music consumers had to choose between buying a CD or downloading the album. Nowadays, thanks to the rise of music-streaming services like Pandora and Spotify, that choice is becoming whether to download music or just stream it online” (CNN). The way in which we consume music nowadays in certainly different from how it was in recent past years, and I’m sure that there will be many technological advancements in the near future.
“Pandora reported a 13% increase in listener hours year-on-year in December. The internet radio service garnered 1.58 billion listener hours last month, up from 1.39 billion in December 2012” (Music Week). It goes to show that people are taking advantage of these fairly recent, and extremely convenient ways of streaming music. I know that I personally use apps such as Pandora, because sometimes I get tired off my own music and want to find something new. Another reason that music streaming is so popular is because it is often difficult to find a good radio station. Between hit songs being played on repeat all throughout the day, weak satellite connection, or the constant interruption of annoying adds, it should be no surprise that FM radio is competing with Pandora, Spotify and all of the others.
I read in one of the articles, as well as your blog post, that Pandora is the highest earning music app in the world. It goes to show that people enjoy being able to find new music based on their personal favorites. They can also change songs, genres and playlists quite easily, which is a very crucial aspect of Pandora, due to the fact that one can simply adjust the music to their given mood at the moment. Spotify does something similar, with the creation of playlists, and song identification tool. It’s pretty amazing that we have come this far with technology in only a few years compared to a decade ago, and it only raises the question as what the next thing will be on the market soon.
Spotify is fairly new, yet it already has over one billion playlists created through it by users. I do not use the app very often myself, as I have Pandora, YouTube, and of course iTunes to rely on, although I know dozens of people who swear by Spotify, claiming it’s the best music app around. The statistics certainly cannot argue with the fact that it’s popular amongst music fans. Just last year, over 4.5 billion hours of streaming amongst users set the bar pretty high for Spotify, and certainly proved that the music industry, as well as the manner in which listeners consume music, is heading in a certain direction (Spotify). With smartphone and tablets taking over the industry, it is so simple to use these apps, and I agree with you that we will likely only see and increase in streaming as time progresses.
Work Cited
Imam, Jareen. "Young Listeners Opting to Stream, Not Own Music." CNN. Cable News Network, 01 Jan. 1970. Web. 21 Mar. 2014.
Jones, Rhian. "Music App Revenues up 77% in 2013, Pandora Highest Earner - Report."Music Week. N.p., 31 Jan. 2014. Web. 23 Mar. 2014.
"2013." Spotify Year in Review. N.p., n.d. Web. 23 Mar. 2014.
"Pandora Blog." Pandora Blog. N.p., n.d. Web. 26 Mar. 2014.
Nick,
ReplyDeleteGreat post! You brought up a lot of great points about the new ‘app’ world of music we live in today. I personal use Pandora radio. I listen in my car, at the library and on my computer at home. Before reading your post I had not given it much thought, but as I was reading I realized I listen to Pandora more and buy songs less.
According to a study called Radio Today by the Numbers, “92% of everyone in this country listens to radio each week,” (“Radio Today By the Numbers Fall 2013”). This statistic got me thinking, is this traditional radio or internet/ app radio? After reading your article and seeing the numbers about the popularity of internet/app radio, I think it would be safe to say that much of the 92% is using untraditional means of radio. Radio is still very powerful and widely listened to, but I wonder what affect internet/app must be having on traditional radio?
After reading another article, I also started to think about the success of internet/app radio. According to Ben Sisario, “Spotify and Pandora exemplify the business challenges for digital-music companies. Both are losing money, and for largely the same reason: the cost of music royalties,” (Sisario). Both Spotify and Pandora are widely listened to and generate millions and millions of dollars, but is the cost of operation too high? Sisario goes on to say “Pandora, which went public last summer, has never had a profitable year, and in its most recently reported quarter lost $20 million on $81 million in revenue,” (Sisario). I find this fact to be very interesting. While the business seems so successful, it is actually losing money. This makes me wonder if the internet/app music industry will be able to survive.
This is where I think an idea like the one you mention in your article comes in. The idea I’m talking about is the idea to create a more involved music listening experience with the help of the internet/app radio and musicians. The idea of artists embracing the change by using apps to interact with fans is a genus plan. According to an article from NIELSEN.COM, “we reported that artists and labels can amp up their revenue streams by offering fans access to exclusive content. And apps are a great way to do that—as well as boost overall engagement,”( Getting Appy). This is a great idea and a great way to build fandom. People like to feel like they know their favorite artist, and this is even more possible today; artists are expected to interact with fans on twitter and other forms of social media. By taking the interacting to the music app world the fans will have even more opportunity’s to speak with their favorite musician. I think this can only strengthen the music industry and create more invested music fans. Hopeful ideas like this one will create more revenue for internet/app radio.
I really enjoyed reading your post. You brought up a lot of great questions and delivered a lot of useful information. I agree it will be interesting to see what the music industry and radio look like in the future.
Work Cited
"Getting Appy: How Artists Use Music Apps to Engage Fans." Nielsen.com 21 Nov. 2013. Web.
Sisario, Ben. “Pandora and Spotify Rake in the Money and Then Send It Off in Royalties.” Media Decoder (New York Times blog) 24 Aug. 2012. Web.
“Radio Today By the Numbers Fall 2013." Arbitron.com November 2013. Web.
As I read your blog I was actually listening to one of my playlists on Spotify. I thought that was pretty funny. As I continued to read through what you wrote I completely agree with everything you said. In the past few years I can see from personal experience the huge growth in online streaming apps.
ReplyDeleteEven three years ago when I was a freshman, I remember everyone trying to figure out the latest website to convert YouTube videos to mp3s in order to get free music uploaded on to their iTunes. Sophomore year of college was the first time I ever downloaded Pandora. The Music Week article that discussed the 77% increase in music app revenues also stated that Pandora was the highest earning music app in the world for 2013, (Jones). This was not really surprising. Basically everyone I know uses Pandora. It’s a really easy music app creating suggested playlists based off an artist, song, or genre. This music app is really helpful in finding songs you never knew you liked based off of their suggestions for you. The convenience of Pandora comes with the fact that it’s free and can be used without internet as long as you have service.
Spotify is newer to me, I just downloaded it within the past month. It is easy to see why this music app is growing and growing quite rapidly. The fact that you can make as many playlists as you want and can customize them however you want is incredible. Similar to a Pandora feature, Spotify does offer some suggested tracks which can help you discover new artists and songs.
On the Spotify Year in Review for 2013, Spotify claimed that the largest playlist library consisted of over 90,000 playlists and belonged to a man in the United States. Between ones that I have my made, my friend has made, and playlists from random strangers that I follow, I have eight. But it is easy to see how users can accumulate large quantaties of playlists. With the ability to make your own consisting of a couple songs to a couple hundred and being able to follow other peoples creations, it is incredibly easy to have a different playlist for every mood, every activity.
I agree that more “traditional” avenues for listening to music, such as iTunes will never fully die out. With Pandora you need to have service, with Spotify (unless you pay a monthly fee) you need to have internet access. Recently on my spring break trip I was lost when we got on the plane. I exclusively listen to Pandora and Spotify; therefore I did not remember I never updated my iTunes library when I got a new phone. Luckily, someone who was traveling with us had his old iPod and let me borrow it for the whole trip. Cases like this show that while we rely heavily on these new streaming technologies, we sometimes still need to fall back on what we consider to be “outdated” at the time.
Jones, Rhian. "Music App Revenues up 77% in 2013, Pandora Highest Earner - Report."Music Week. N.p., 31 Jan. 2014. Web. 23 Mar. 2014.
"2013." Spotify Year in Review. N.p., n.d. Web. 23 Mar. 2014.
Victoria Cribbs