ISSUE 352 | 15 OCTOBER 2014
Contents thereport 06 Beyond music: Talking TV at MIPCOM 07 Pinboard: Stats, deals, startups and more 09 Country profile: Russia
Apple: where next? 2
ISSUE 352 COVER FEATURE 15.10.14 Apple: where next? Apple has, arguably, not he new battleground for streaming in complete control of as well as having the successfully innovated in services is not catalogue size as device base to do it with. Why not try that? music for over a decade. they all have pretty much the It doesn’t have to be an either/or. It can be Ping was a disaster, iTunes same enormous catalogues – both. giveT or take the odd exclusive like Beats Music is compatible with Android Radio still limps behind Metallica. It’s not on pricing either as they and Apple should take advantage of that to Pandora and it had to buy have all settled around $9.99/£9.99/€9.99 grow its market ahead of Google. It’s a huge in a subscription streaming a month. opportunity. It has cornered the download service rather than build business – which is still a real business. It its own. Only recently did The lawyer suitable to the Apple brand in a way that has cornered a good chunk of the device Chris Castle, Christian L Castle no one else has done. That is the biggest business and now they have a way to get it attempt to disrupt the Attorneys (Texas) opportunity it has and it is in a unique onto all the other devices that they don’t album market by giving It has to figure out what it is going to do position to do so. control through the Beats acquisition. away U2’s new album for with Beats, iTunes Radio and the streaming Transitioning from downloads to streams Rather than just stream to Android devices, free but the public backlash reality. It has a good brand with artists for is the challenge – but Apple has the pieces why wouldn’t Apple try and find a way to pretty much everything it does and it hasn’t to do it. It would be an extraordinary waste sell downloads into that ecosystem as well? suggests it dangerously had to deal with the Pandora and Spotify if it abandoned iTunes, which it clearly is It’s not going to be trivial to accomplish, but misread the market. The hate element. But for the first time, I think, it not inclined to do. I personally don’t believe God knows the company could do it. download business that is about to cross the Rubicon. that [streaming] is ever going to land. The one thing Apple, and everyone else, it kickstarted in 2003 and Their rates on downloads have only It’s like Millerism and the psychological could do is open up the one piece of data gone up. People, generally, speaking, feel phenomenon of The Great Disappointment. that every artist could use more than any still dominates is now good about iTunes. They don’t feel good That is what is starting to happen with heat map – namely to make it easy for fans running out of road with about streaming services. Apple has to be streaming. There is almost a religion about to sign up directly to an artist email list. sales flattening in some concerned that when it starts to look more streaming and how it’s the future – but Beside the ‘buy’ button they could have markets and falling sharply like a streaming service that it doesn’t draw, it’s not paying off for anybody except the an ‘email sign up’ button if you are a fan. to its download business, a lot of the ire people who are promoting the idea. We Even if you get just 1% of people signing in others. With all of that in that is directed at streaming. are beginning to experience The Great up, those would be real email addresses mind and with things having There is a rumour it is going to negotiate Disappointment of moved on so swiftly in the downward for its streaming rates. I can’t streaming in the artist past decade, we ask people imagine that it would cut those prices [for community. subscriptions] and not cut royalties. That Apple has a chance from different parts of the is going to be a shocker for everybody. You to avoid all that and industry what Apple needs have to use scientific notation to express find a way to integrate to do to stay relevant and what your royalty rate is today and you streaming into its to ensure it remains the want to make it even less? I don’t think download business. that is going to fly. It has to be careful with There will be some centre of gravity for the
report that but it really has an opportunity to fall off. It has got digital music business for combine these two businesses [downloads some pieces that are another decade or more. and streaming] that would be innovation- interesting and that it is the 3
ISSUE 352 partnerships with dance labels. company doing this and not us? 15.10.14 COVER FEATURE Instant grats are the [hot] I look forward, more in hope than thing going on at the minute. expectation, that the industry can anticipate that you could really do stuff with. If they Everyone is doing it and every change rather than simply react to it. did that one thing, that would be a huge time an album goes out on pre- differentiator for them. It’s no skin off order there is an instant grat. The distributor/ Apple’s nose and hardly costs anything. And That seems to be the main part artist manager if the artist doesn’t want to populate it with of the iTunes marketing. I am Scott Cohen, founder of The a link then shame on them. Let them have it not sure what impact that has Orchard and manager of The Raveonettes, for free. on marketing now as everyone The Dum Dum Girls, The Deer Tracks, The artists drive business to iTunes. is doing them and has been for Queen Kwong and Bleech Apple doesn’t sell tracks by working them at mainly until now, iTunes has never really a while. It is a good thing to get The Beats acquisition is really interesting. I radio and its ass isn’t in the studio [making figured as part of a pre-release strategy. people listening to music before the album don’t think of it as necessarily being about albums] and getting haemorrhoids. The Dance music has tended to do more stuff comes out, but I am not sure it is having the the music subscription service. Apple could artists are doing that so Apple should do with SoundCloud and that is slowly switching same impact now. It’s just becoming standard have done that itself. As we get into the them a favour and let them have the email to Spotify. industry practice. world of wearable technology, what are addresses – if the customers want to hand For some dance labels, Spotify is coming headphones if not wearables? We know that them over. Let the artists have the email up really fast for them. Then there are stores The tech writer wearables can do a lot more both in terms addresses of the business it drives to iTunes. like Beatport and Bleep, with Juno and Andrew Orlowski, The Register of what the user puts in but also what we It seems only fair to me. Amazon after that. Apple is believed to be putting in get out. There is a huge opportunity around iTunes doesn’t really figure. It is more place something akin to a hallmark for music, that. The marketer important for dance artists to have tracks such as ‘guaranteed quality’, in which a new Where Apple has done really well is – and Lucy Blair, Motive Unknown on SoundCloud – that’s a huge part of the digital format plays a part. If this is accurate, this is where companies like Samsung and I have never done pre-releases on marketing strategy as it has such a large it would tell us a few interesting few things: Nokia have stumbled – is that when anyone iTunes and maybe that is because I am not dance music community. Dance music fans that Apple believes that music can enhance buys anything [on iTunes] they get registered working on artists who are big enough! Jay Z are more likely to want to go to Beatport or the quality of Apple’s gear; that it believes and it is connected to their credit card. Nokia and Beyoncé are the kind of acts who do that stream the track on SoundCloud – or even that music has value which is not being tried it with Comes With Music but it’s a much because they have such a huge audience and Spotify – than necessarily download from tapped today; and that Apple can exploit this easier proposition with, they don’t need to do all the pre-marketing iTunes. value gap to enhance the music experience hypothetically, “Beats stuff. Often iTunes wouldn’t be interested in You don’t hear about many dance acts for its customers. Comes With Music”. promoting [small acts]. doing stuff with iTunes. They tend to think This promises to change the landscape in You have headphones, Because I have worked with dance acts about what they can do with their own some interesting ways. It offers the industry shouldn’t you have channels as they have such a way out of the shaky basket in which it’s music? That is a much an engaged audience there put its eggs, and which now appears to have easier sell than Nokia anyway. Because EDM is so big fatal consequences for music investment, Comes With Music. in the US, the time for iTunes production and streaming. By targeting to embrace dance is now. It’s But it also begs a few questions for the someone who buys also a perfect opportunity for industry. headphones, which are whatever it is its going to do Why aren’t open end-to-end industry wearable devices, you with streaming and Beats. If it standards being developed that encompass can capture lots of data is going to keep the curation the entire chain from production to – but you can also make
report and editorial, there is a huge consumption? Without open standards, that easy assumption opportunity to create more pre- Apple will own this. The music industry should that the buyer is a music release marketing strategies and ask itself this: why is a consumer electronics fan. There is your target the 4
ISSUE 352 service. On a more sophisticated level, the except for just approval]. Annoyingly, it’s always a case of 15.10.14 COVER FEATURE business model is everything. In a world of being able to who you know rather than what you know. so many people accessing so much media control your We have had an app approved in the past in in so many different ways, there can’t be a playback on under 24 hours but mostly it’s two weeks. single business model to fit all. There can’t your phone We don’t have connections [where we can even be two or three. It’s got to be a truly from your speak to someone at the App Store directly]. blended world where different people on watch. We would love those kinds of connections. different devices and with different economic When Some of the bigger developers do – like US2. circumstances will consume media different Apple makes You can always tell. As soon as an app is and pay for it differently. It is situational, its big announcements at WWDC, it has launched, is it featured [on the homepage]? device-specific and age-specific. There are sessions there for a more in-depth look [at If they are featured on day one then that a lot of intangibles there. So it’s not about the OS]. But there is a lot of trial and error means Apple has had a fair amount of the download model or the streaming model. from playing around with stuff – working out warning and discussions about it beforehand. It’s about all of them. It has to have business how to crowbar things into new ways of doing We have spoken to Apple about some apps models that reflect that. stuff. You always have to keep on top of any but that has mainly been through the labels new technological advance. as those labels have their iTunes relationships. The developer The biggest problem with Android is the The biggest pain than any iOS developer Syd Lawrence, UI – how confusing it is and how hard it is to has is the whole certificate and provisioning market instead of the wider world of giving We Make Awesome Sh use it. But the new version, Android L, looks profiles song and dance. To get a new app everyone the U2 album. The biggest recent push [by Apple] has a lot more refined. When that comes out it onto someone’s phone, you have to find out Something like 80% of music consumption been around things like HealthKit and the will be interesting to see if people move over their UDID [unique device ID] beforehand, in America happens in the automobile. Looking integration of widgets such as the Today to Android. add that to the Apple developer system, add at those consumption rates, what does that bar. But if you want your app with HealthKit, that to a provisioning profile, mean for Apple? It is a big opportunity for it can’t work on devices that don’t support create a new certificate for your everyone, but Apple makes devices and Apple HealthKit. That’s a bit bullshit. It’s a bit of a developer environment and send knows who people are. This is the Achilles’ heel surprise as well. Will they fit it in the next iOS it out. With that whole process of other hardware manufacturers. I own lots update? I don’t think so. I don’t think they you have to sit and hope that it of Samsung products like a phone, vacuum care. will work. It is a longwinded thing cleaner and a TV but they don’t know it. Apple I think Apple has lost its way a little bit as that often causes nightmares. knows every device I have and it knows how I a company as a whole. They are no longer That process itself takes a good use them. It has created an ecosystem around thinking about some of the stuff they were amount of time. all of that makes me keep coming back. These thinking about. There is also the sending out are the opportunities for Apple going forward My biggest hope is that it releases some with wearable devices, the car and other form of developer platform for Apple TV so lifestyle products. that you can make apps for the device that The approval process on Android is non- The market looks really good for Apple, sits in your lounge. The Apple Watch stuff existent; you can publish an app and it will but the company has to execute in the is pretty interesting, but I am not sure what be live within a few hours. With Apple, you future like it executed in the past. In the end, music-based use cases there are for it as yet have no idea what they are going to turn it’s not about downloads versus streams, around and say. We did a project with one ownership versus access or advertising band where it looked like Apple wasn’t going versus subscription. I think that sometimes to approve it because it wasn’t necessarily
report over-simplifies it – or it over-complicates it. in its best interests from a business point of On a simplistic level, people don’t care view. That one took four weeks to approve. what the business model is behind a Nowadays, two weeks is the average [for the 5
ISSUE 352 be archives. This is essentially 15.10.14 COVER FEATURE a group of content around an artist that includes songs and of test versions. Apple bought TestFlight multimedia. That could easily recently which makes it a lot easier to get sit within a streaming service a test build to people, but it still has a bit as much as it could sit within a of a song and a dance to it. They haven’t downloadable app. It actually integrated it into Xcode [Apple’s bespoke becomes a more manageable code to build apps] as well as you would have user experience if it doesn’t hoped they would. I imagine that is a plan sit within a standalone app of theirs – but they haven’t done that yet. because then you just end up Developers do complain that Xcode is prone This is going full circle for Apple. Apple with dozens of artist apps on your phone on price, you get a certain amount of iTunes to crashing. needed music to get its device business top of all the other ones you’ve got. subscription credit in there. Then the top tier Android has as much song and dance going. It really thought it had moved beyond Apple has got a streaming service, it is where you buy the top-end device [with a about it – just in different ways. With Android that stage and now it is realising that, has lots of feature sets that currently exist sub rolled in]. A three-pronged approached you have to support multiple devices ironically, it is having to go back to music to as standalone products like iTunes Radio would make the most sense for Apple – free, that have different feature sets, different bring back some of its most loyal customers. and iCloud that can become features of subsidised and premium. capabilities and different screen sizes. [Having Beats on Android] is not because a streaming service. Wouldn’t the most Even if you got a $3.99 and a $9.99 Android’s developer environment, Eclipse, is, it wants to conquer that OS. It is a way of natural thing for Apple to do is try something product into market, $3.99 is still going to frankly, worse than Xcode. There are many making sure it establishes a beachhead so it ambitious and create the next-generation go completely over the top of the heads of more variables with an Android app than can win back the lost customers and build out music platform that has all of these things in the vast majority of its 500m customers. there are with iOS. into new customers. Apple doesn’t want to be it? That would have to be the breadth of the If you are making a bet that the future is Apple is getting much better at having an Android software player; it just wants to be ambition where it can indisputably be held streaming then you have to get everybody inter-app support. Before, on iOS each app there because it’s a way to fight from within up as a company that has seized back the streaming. You have to do that in a way would be a separate thing and you wouldn’t enemy territory. innovation baton. that doesn’t lose you too much money but be able to communicate between the apps. It has to look at what it can do Apple would be foolish not to utilise its which also doesn’t end up looking like a You wouldn’t be able to do anything differently. If it wants to utilise the full ability to subsidise music costs. There is no cheap, second-rate radio offering. outside of your container – which you now capability of its devices, it could create way it is going to convert the majority of its Do fully expect, given the relationship can. They have added quite a lot in iOS for something that is visually rich and userbase [who buy a few tracks a year] to a Apple has with the majors in particular, there that kind of thing, meaning that apps are no interactive as a format. That is something full-price subscription. A lot of them will just to be a lot of promotional activity. It is already longer a closed silo. that can be both a music strategy and help engage with free. But imagine if Apple could happening on iTunes Radio where a certain create a clear competitive space. do three tiers. One is free where you have the amount of the songs that get pushed into The analyst In some ways it is easier to sell Apple’s basic iCloud, iTunes Radio and the download streams are ones that the labels want to push. Mark Mulligan, co-founder of userbase some sort of next-generation store. The next tier is a subsidised one where, Apple will be asking the earth [to give] the MIDiA Consulting album product than it would be to sell that if you buy a certain device at a certain labels a lot of promotional exposure. :) There is no doubt that, over the past few to the installed userbase of Samsung Galaxy years, Apple has lost a lot of its music mojo. owners. If anyone could make it work, A three- Part of the reason for that is that Apple was Apple could – because of its capabilities, its pronged distracted by much more interesting things ideology and its userbase. The opportunity approached – things that show off the capability of its here is less about an album as such would devices like e-books and games. It probably and more about building artist-centric make the most sense for report thought it didn’t need to do that much with experiences. Some of them might happen to music any more because music wasn’t the be albums, some of them might happen to Apple – free, subsidised thing that was selling the devices. be playlists, some of them might happen to
the and premium” 6
ISSUE 352 15.10.14 BEYOND MUSIC Talking TV at MIPCOM
THE LATEST HAPPENINGS FROM millennials are running after us because command of the shortform online media if so he’s about as high-margin a media entity THE CANNES INDUSTRY EVENT we have what they want – great content,” they’re not to go the way of the dodo. as you can get. said Ynon Kreiz, Maker CEO, in a keynote Is it right, though? As music:)ally sat in on Yet the MCNs are trying to prove their IPCOM is one of the two TV interview that was a metaphorical other conference sessions, things became calibre by also investing heavily in more industry equivalents of Midem chest-thumping lap of honour after the interestingly less clear-cut. Broadcasters expensive, high-quality shows – even if held in Cannes every year (the acquisition, which he said brought the old accept that young viewers are watching they’re still shortform – where the ROI is still other is MIPTV), based around and new media worlds together. YouTube lots, but they are also asking very tough, especially given the early stage Msimilar twin features of a market for buying “They had to do something to remain pointed questions, particularly around (still) of YouTube ad revenues. and selling content as well as a conference for relevant in that space – the shortform business models. This is changing. Brands and agencies discussing the latest trends in the industry. medium – and especially with millennials,” The fascinating thing about YouTube is are putting more of their budgets into online The MIP markets, however, are now a lot added Kreiz, illustrating that wider theme that some content is very cheap to make. video rather than TV, slowly. But the claims larger than the comparable zone at Midem. pressed by the MCNs at MIPCOM: that PewDiePie shoots and edits his own videos by MCNs that they present an imminent Yes, digital loomed large at MIPCOM, traditional media companies need their alone, most of which involve playing games, threat to the status quo can be questioned just as it does at music – especially when the biggest conferences. One of the major beasts of the production world trends this year was MCNs and continue to make massive- the continued growth of the budget series that they’re paid YouTube ecosystem: mention handsomely for by broadcasters. YouTubers like PewDiePie or In fact, digital seems to Bethany Mota to the average be opening up opportunities attendee and you’re much less for those big beasts to take likely to get a baffled blank stare their traditional kinds of show in response now. online. Netflix, Amazon, Hulu The MCNs were certainly and others are investing huge bullish. There is Maker Studios in sums in original productions like particular, fresh from its $500m House Of Cards and Orange Is acquisition by Disney – a sum The New Black, paying for them that could rise to $950m if certain upfront. targets are met. The prevailing MCNs and YouTubers theme whenever an MCN spoke do represent an important was that they are the true TV generational shift in what people networks for “millennials” – the think of as “quality” content; young viewers who are turning but while the big guns of the to YouTube as an alternative to production world are still awash
report broadcast TV. in cash, they simply don’t feel “Everybody is running the threat breathing down their after the millennials, but the necks. Not yet, anyway. :) the 7
ISSUE 352 15.10.14 TOOLS Pinboard » Deals Tweets
VAYTUS DEEZER #MusicAlly Vaytus, a new streaming service aimed at independent content and which claims will pay artist higher rates @DavidEmery than other major Today’s highlight streaming services, so far: acciden- has raised $32,861 on Deezer has partnered with Vodafone in South tally getting a PO Kickstarter, passing Africa to offer its 32m customers bundled access through for a radio mix for its $30k funding goal. to the music service for a year. The Script that Sony seem to think I’ve done
@seaninsound MUSIKKI WILL.I.AM How much is a Musikki, which Will.i.am is launching stream worth? I’m describes itself as “the his new smartphone no mathematician IMDb of music” with with a music service but... an ocean of music = content aggregated provided by 7digital. worthless / a song that re- in real time, has raised duces pain /induces a tear €330k from Smart = priceless Equity in its second funding round. @Popjustice EXCEPT IN THE UK RT @iTunes- SHAZAM SAMSUNG/GOOGLE PLAY Music: Are we in the clear? @taylorswift13 Shazam has linked Consumers buying a new Get #OutOfTheWoods with Sun Broadcast Samsung smartphone/ now when you pre-order Group (which has tablet in Latin American 1989. http://tw.itunes. 8,000 radio stations) markets will get six months com/6010Uhhu in the US to create of bundled access to interactive content Google Play while existing for its audiences and Samsung owners will get a Follow Music Ally report advertisers. three-month trial. on Twitter... twitter.com/musically the 8 ISSUE 352 » Stats 15.10.14 TOOLS Pinboard SOUNDCLOUD FINANCIALS SPOTIFY: UK FINANCIALS NEW SERVICE DISCIPLE MEDIA
11.28 8.04 Subscription 64.8m 4.32 Income 92.0m 1.37 92.6m Revenue 131.4m -1.55 -3.74 –11.0m 2012 2013 Revenue Net Income/ 2.6m -12.43 Loss Net loss Source: Spotify
Source: SoundCloud -23.11
2010 2011 2012 2013
What is it? Co-founded by former WMG exec Leanne Sharman and musician Benji Vaughan, Disciple Media is the US: RECORDED MUSIC SALES US MARKET SHARES Unit sales (million) latest company trying to help artists make money 974.6 Indies 14% through apps. In this case, artist-branded apps that will 848.4 Source: Nielsen WMG 19% help them live-stream video from their smartphones or laptops, as well as offering music, tickets and merchandise. Fans will get limited features for free – Under review or they can sign up to monthly subscriptions for full 2013 Jan-Sept 1% access to the content. The company may also broker 2014 Jan-Sept partnerships with brands – something we’ve seen Source: Nielsen already in the US with Shakira and T-Mobile – and is planning to roll out dozens of apps in 2015. Apps are a tough space for artists: people aren’t yet spending 113.1 91.7 in-app on music to the same extent they are on games 87.8 77.6 like Candy Crush Saga. SME 28% report Even so, the time feels ripe for someone to take another crack at artist apps, building on lessons from the last five Digital track sales Digital album sales CD sales UMG 38% years within music and in other sectors alike. the 9
ISSUE 352 15.10.14 MARKET PROFILE Russia
much of the digital growth in 2013 (which made up for the physical decline, according RUSSIA to IFPI), the retailer’s sales have plateaued since then. RBTs are also said to be flattening or even declining. STATS With regards to streaming, music:)ally f understands that the biggest services in Population 142.4m terms of revenues are YouTube/Vevo and Yandex Music. The latter was launched in
d mid-2012 by local company Yandex, which GDP per capita US $18,100 is the leading search engine in Russia, h surpassing even Google. A licensed service, Yandex Music claims Internet users 32.7m to have over 16m tracks. It has a free ad- j funded tier and a premium one priced at Mobile subscriptions 163.7m RUB 149 ($3.65) per month. All sources agree, however, that the
i music platform with the widest adoption in One of the most challenging markets in the world, Smartphone users 36% the country remains that of incumbent local Russia still faces massive levels of piracy. Although Sources: CIA World Factbook, IFPI social network Vkontakte, whose UGC music service remains unlicensed. A local source developments to legitimise music streaming on incumbent told music:)ally that Vkontakte’s music social network Vkontakte might present an opportunity service has approximately 50m unique music for existing and upcoming services, the next steps will conversations with local sources, :) users. Its popularity is down to various ally understands that downloads account factors, including not only the fact that it have to be taken cautiously so as to not hurt other for approximately 40% of digital revenues, is free and neatly integrated with the social sectors of the music industry. followed by ringback tones (RBTs) with 30%. network, but also that its UX and catalogue The remaining revenues come from a mix of are also very strong. sources, including ringtones and streaming. As a matter of fact, this high-ranking ccording to IFPI, recorded music repertoire. Local sources explain that around Apple is virtually the only downloads- source in the local music industry explained sales in Russia totalled $57.7m in 100 local indies account for approximately based revenue stream in Russia, having that Vkontakte would be a rather powerful trade value in 2013, up 6.2% from 80% of the market. This fragmentation quickly carved up a market consisting of adversary to any international service 2012. Digital revenues grew 14.6% is exacerbated by a lack of developed the wealthier iPhone-owning citizens with looking to launch in Russia. The company Ato $38.7m, while physical formats fell 7.5% centralised licensing bodies. the launch of the iTunes Store at the end is said to be in talks to go legit next to $19m. The market was thus split 66/33 in The international trade body does not of 2012. Although iTunes downloads drove year, which would be a very interesting favour of digital. break down digital revenues in Russia; music:)ally understands that IFPI’s figures the lack of more accurate figures is down Apple is virtually the only downloads-based revenue
report mostly come from major record labels alone, to the fact that the mechanisms for stream in Russia, having quickly carved up a market which makes them extremely limited given reporting and collating music sales in the consisting of the wealthier iPhone-owning citizens” that the market is dominated by domestic country are rather primitive. Based on the 10
ISSUE 352 15.10.14 MARKET PROFILE Russia continued...
development for the local industry – both in terms of the revenues it could generate as TOTAL TOTAL TOTAL TOTAL TOTAL well as how it could level the playing field for 120.1 100.7 69.0 54.3 57.7 other services. Local startup Zvooq is an interesting legal alternative, currently offering two mobile 98.5 apps with differing access to its 15m track 66.8 Physical catalogue of both major and indie content. Today you have around 30m 19.0 Digital Zvooq is the full on-demand streaming 49.3 20.5 Russian e-shoppers, but piracy option priced at RUB 199 ($4.85) per month; remains challenging for music. Fonoteka has a model akin to the now 38.7 33.9 33.8 I estimate that it will take the defunct Bloom.fm, with monthly fees of 21.6 19.7 RUB 33 ($0.80) or RUB 66 ($1.60) for storing next five years for Russia to have three or seven albums offline at a time, 2009 2010 2011 2012 2013 10m people paying for music respectively. subscriptions” Although Deezer has been available Russia recorded music sales Mathieu Molinero, in Russia for some time, music:)ally (US$ millions, trade value, historical exchange rates) Source: IFPI Deezer understands that it has not gained significant traction yet. In addition to its ad- funded web-only tier, the company offers its in the company’s history, been booming. A report by CCIA/Floor64 Premium+ plan for $7.99 per month. In talks also demanding a higher indicates that in 2013 live music revenues with music:)ally, Mathieu Molinero (head of degree of localisation and in the country totalled $1.47bn, surpassing new markets, Deezer) said, “We are currently translation efforts. the French market ($1.2bn), as well as the working to review some dimensions of our music:)ally understands Spanish and Italian ones combined ($1.45bn). local strategy. Yandex and Zvooq are well that it was only after the Interestingly, a local source points out adapted to the Russian market, notably in launch of iTunes that local that such is the relevance of the live sector terms of pricing. Still, this is a very promising record labels started to for the Russian music industry today that market, with a huge population and where be more digital-savvy and the pressure put on Vkontakte to go legit digital penetration is growing. Today you proactive, helped also by could have some negative aspects in the have around 30m Russian e-shoppers, but the entry of label services wider context. This is due to the fact that piracy remains challenging for music. I providers such as Believe the social network’s popularity as a music estimate that it will take the next five years Digital. On the publishing destination has grown to such a point for Russia to have 10m people paying for Local startup Zvooq side, however, much work that is has also become a very powerful music subscriptions.” remains to be done. RAO engagement platform for live promoters Competing service Spotify is not yet launch in Russia in Q3 this year, but music:) is considered to be the largest collecting to connect with fan communities. The available in the country, despite having ally understands that this is unlikely to society in the country. Its digital-readiness, industry will thus have to tread carefully been recruiting local talent (including happen until sometime next year. The however, is said to be lacking still. with regards to the next moves around
report former Googler, Alexander Kubaneishvili) importance of securing local catalogue With regards to performance rights, it Vkontakte to ensure that going legit won’t to head Russian operations. It was in such a fragmented market could make is well worth considering that, for several effectively lead to significant damages on previously rumoured that Spotify would this a more challenging rollout than others years, Russia’s live music sector has the live front. :) the 11 Music Ally is a music business information and strategy company. We focus on the change taking place in the Music Ally is an ISSUE 352 industry and provide information and insight into every aspect of the business, consumer research analysing 15.10.14 example of perceptive the changing behaviour and trends in the industry, consultancy services to companies ranging from blue journalism at its chip retailers and telecoms companies to start-ups; and training around methods to digitally market your best, with unrivalled artists and maximise the effectiveness of digital campaigns. We also work with a number of high profile music Andrew Fisher, events around the world, from Bogota to Berlin and Brighton, bringing the industry together to have a good CEO, Shazam coverage of the commonsense debate and get some consensus on how to move forward. Entertainment digital music sector”
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