Excluding video games, digital content has come a
long way since the booming of the internet era. Napster and other P2P services
have not only contributed on getting people used to enjoying digital contents,
but also contributed on people taking advantage on the easiness of replicating
and sharing digital contents, leading to great controversy on copyrights and
ultimately slowing down the growth of the digital content industry until iTunes
became popular.
As briefly mentioned above, the music industry suffered greatly from free sharing of music online. The video segment also suffered to certain extent, but not as greatly as the music business. Video business has its main source of revenue, whether it is a movie theater or a television whereas for music, it lacked that main outlet that can rack in revenue during a certain period of time since its release as well as the fact that it being low data size, it was even easier to share with others. Withstanding all of these hardships, the music industry has evolved into embracing new ways of distribution, thanks to iTunes, Spotify, and Pandora to name a few. iTunes have long dominated the market, but recently Spotify and Pandora as well as Microsoft’s Xbox Music have been challenging that dominance with innovation. iTunes is based on the purchasing model. Spotify and Pandora innovated the market with subscription model as well as brining innovative services, such as pre-loaded playlists and incorporating social elements to it, allowing a user to share playlist with his/her friends. In addition to these services, these new players are gaining market share due to growing usage of mobile, pushing greater demand for streaming services.
As these new players are flourishing, there are concerns that YouTube could be a threat to their growing presence. For those on demand music services, YouTube provides free unlimited streaming music on popular titles due to users uploading, but Spotify and Pandora charges certain amount of dollars of these streaming services. Also, adding to that threat is the fact that YouTube comes embedded with iOS, allowing users for easier access.
As briefly mentioned above, the music industry suffered greatly from free sharing of music online. The video segment also suffered to certain extent, but not as greatly as the music business. Video business has its main source of revenue, whether it is a movie theater or a television whereas for music, it lacked that main outlet that can rack in revenue during a certain period of time since its release as well as the fact that it being low data size, it was even easier to share with others. Withstanding all of these hardships, the music industry has evolved into embracing new ways of distribution, thanks to iTunes, Spotify, and Pandora to name a few. iTunes have long dominated the market, but recently Spotify and Pandora as well as Microsoft’s Xbox Music have been challenging that dominance with innovation. iTunes is based on the purchasing model. Spotify and Pandora innovated the market with subscription model as well as brining innovative services, such as pre-loaded playlists and incorporating social elements to it, allowing a user to share playlist with his/her friends. In addition to these services, these new players are gaining market share due to growing usage of mobile, pushing greater demand for streaming services.
As these new players are flourishing, there are concerns that YouTube could be a threat to their growing presence. For those on demand music services, YouTube provides free unlimited streaming music on popular titles due to users uploading, but Spotify and Pandora charges certain amount of dollars of these streaming services. Also, adding to that threat is the fact that YouTube comes embedded with iOS, allowing users for easier access.
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