The music streaming market is becoming crowded. Pandora has hired a sales team to commercialise its local offering and iHeartRadio launched this month promising brands the opportunity to own their own music channels. But Telstra director of digital media and content Adam Good has claimed that the ad-funded model risked failure and that could see some players disappear.
Next year Telstra will launch a new streaming service called Daisy, in collaboration with producers Jimmy Iovine and Dr. Dre. Good told AdNews that music streaming “has to be a subscription-funded model” because the “ad-funded model doesn’t particularly excite the music industry”, with many studios “not keen” on it. He claimed that created a risk of the ad-funded services becoming a “back catalogue” rather than the best new music “so over time there will be a big shake-out”.
Good said that the subscription model applied across the digital spectrum. “Anything that is premium content has to be a subscription model, otherwise you are just scouring YouTube for the rest of your life.”
While Pandora users enthuse about its automated ability to suggest music to listeners based on preferences, Good said that curation and emotional involvement were essential. The Daisy service, with Nine Inch Nails front man Trent Reznor as head creative, will have a higher level of human curation from music industry figures than available elsewhere. “It is all about curation. That is why radio exists. That is where the value is, that is where the market is.”
Although Apple will counter the threat to download revenues presented by streaming with an iTunes streaming service, Good said it was premature to sound the death knell for the platform. “There have not been too many media that have disappeared. But it will be interesting to see how it shakes out.”
This article first appeared in the 9 August 2013 edition of AdNews, in print and on iPad. Click here to subscribe for more news, features and opinion.
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at brendancoyne@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.