I believe that out of all the streaming services that Apple Music has the most sustainable business model due to their brand recognition. In the early days of the Ipod, users were forced to download their music through Itunes, and many people have become accustom to using Apple products for their music consumption. Apple Music has a simple layout, and is extremely organized with regards to an individual’s personal music library. According to an article published by High Resolution Audio, “Apple and Amazon both grew market share with 18% and 12.6% respectively.” Apple Music has continued to grow over the years because they are in the top two of streamers for music with respects to revenue worldwide. As soon as Apple users open the Apple Music app it takes them right to their music library, and the app organizes the music by playlists, artists, albums, songs and downloaded music. The app makes it very simple for users to access their music, and share it with their friends. Apple Music incorporated a section within the app which specifies what type of new music someone may like based on their previously downloaded music. A lot of users find this to be a convenient way of finding new tunes. According to Amy Wang, Ethan Millman and Tim Ingham of the Rolling Stones publication stated, “Last year, music streaming services like Spotify, Pandora, and Apple took their artist-facing data analytics platforms up a notch, boasting about how such platforms can offer an unprecedented degree of understanding about one’s own audience. In my opinion, Apple Music does a great job of this, and really seems to understand what music their individual users like listening too. This will build a trust amongst users and the company because it seems as though the company understands what they like, and attempts tailoring content specifically for them. Kif Leswing of CNBC wrote in April 2019, “Apple Music has passed Spotify in terms of paid U.S. subscribers, The Wall Street Journal reported on Friday.” Not only is this a huge milestone for Apple Music, but it is a sign of what is to come. Apple Music is steadily on the rise, and their does not appear to be an end to their rise in sight. I feel as though Spotify has reached its peak, and Apple Music will evolve with upgraded Apple software installed in their newest Iphones. The Apple Music experience will only get better, and more convenient for its users. Paid subscriptions represents a customer’s satisfaction with the company, and as of right now, Apple Music is the number one streaming platform in that category.
Bouma, Luke. “Amazon Is Losing Millions on Prime Video, But It Doesn't Care.” Cord Cutters News, 27 Feb. 2017, www.cordcuttersnews.com/amazon-losing-millions-prime-video-doesnt-care/. leswing, kif. “Apple Music Has Reportedly Passed Spotify in Paid Subscribers in the US.” CNBC, CNBC, 5 Apr. 2019, www.cnbc.com/2019/04/05/apple-music-has-reportedly-passed-spotify-in-paid-subscribers-in-the-us.html. Wang, Amy X., et al. “Where the Music Business Is Going in 2020.” Rolling Stone, 21 Jan. 2020, www.rollingstone.com/music/music-features/music-business-stories-to-watch-2020-928849/.
Of the top streaming services available in music today, the biggest competitors doing best in the market are Apple Music and Spotify. (High Resolution Audio) Spotify has surged forward as being the most successful and most used streaming service for music, and in their success Spotify has managed to gain huge customer loyalty. Spotify has managed to develop such a successful business model for their streaming service, with the highest amount of subscriber on their platform, and the most amount of revenue in their subscriptions. While Spotify has managed to become the most successful streaming service available to the public, their main problem in their business model is that they may not be able to keep up this success and continue. (Glen Peoples) While there is risk for Spotify’s success to slow down, the customer loyalty that Spotify experiences will continue to support this streaming service in some way, proving that their business model is one of the best in the music industry. Along with Spotify, Apple Music is the second most successful streaming service in Music. (High Resolution Audio) While Apple Music’s subscriber numbers and revenue from subscriptions is long behind that of Spotify, the business model for Apple Music allows for growth in their service. Apple Music has opportunities for the streaming service to add new features and expand to a larger audience of subscribers. Amazon Music is not well known in the music streaming industry, and fall well behind in terms of subscribers and revenue. (High Resolution Audio) Amazon Music is not as well known as the two top competitors, Apple Music and Spotify, but the business model for Amazon is proven to show that this streaming service is likely to surge forwards in the upcoming years creating the newest trends in music streaming and allowing for major success within the company. (Tim Ingham) Amazon Music has adjusted their business model to try and surge past the top two competitors and in the future try and become the number one competitor in the music service industry. On the other side of success, the music streaming service that seem to be failing within the industry is Pandora. (High Resolution Audio) Pandora started out in the streaming industry as one of the most popular apps and services that people used, but as time went on Pandora fell to the bottom, losing all popularity. Pandora’s business model has fallen behind in trends and popularity, causing the service to struggle, and causing the service to see such low numbers in subscribers, revenue, and such low percentages in any gain they received in these categories. (George Szalai) Pandora has limited options, limited features and their business model is years behind that of Apple Music and Spotify. With more modern changes and a more widening business model, Pandora would be able to fix their struggle in the streaming competition, but with the way that Pandora is currently running this does not seem to be what is coming in the future of this service.
Sources“Big 4 Streamers Gain Market Share.” High Resolution Audio, 9 Dec. 2019, www.hiresaudio.online/big-4-streamers-gain-market-share/. Ingham, Tim. “Has Amazon Already Figured Out the Future of the Music Streaming Business?” Rolling Stone, 14 Jan. 2020, www.rollingstone.com/music/music-features/amazon-future-of-streaming-936900/. Peoples, Glenn. “Spotify In the Black: What Would a Profitable '19 Mean for the Streaming Giant -- and Can It Keep It Up?” Billboard, 1 Nov. 2019, www.billboard.com/articles/business/8541702/spotify-profitable-streaming-service-analysis-impact-music-industry?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%2BTemplate%2BBB%3A%2BMulti%2BStory%2B-%2B2.0&utm_term=daily_digest. Szalai, Georg. “SiriusXM Adds 210,000 Satellite Radio, 33,000 Pandora Subs, Touts Marvel Podcasting Deal.” The Hollywood Reporter, 31 Oct. 2019, www.hollywoodreporter.com/news/siriusxm-adds-210000-satellite-radio-33000-pandora-subs-1251130.
Fierce competition between streaming services is a defining point of the state of media consumption in 2020. Between the services of Apple Music, Spotify, Amazon Music and Google music are listeners searching for the best possible fit to their lifestyles, personalities and genre tastes. According to High Resolution Audio, the “Big Four” of streaming services are in the order of Spotify, Apple, Amazon and Google with Pandora coming in fifth. Tidal did not make the rankings, falling into the “other” category. Services like Spotify and Apple Music are working harder to differentiate themselves from the competition, which does fit into the idea that different streaming services attempt to have different “feelings” to them in terms of aesthetic and branding. Spotify, for example, is moving big into the podcast scene with premiere and exclusive podcasts to the platform along with brand new categories and personalization on the home screen to emphasize the revamped library of podcasts available. According to an article by Fast Company, Spotify is now a podcasting powerhouse. With their recent acquisitions of Gimlet Media, Anchor, Paracast and The Ringer, Spotify has amassed a large collection of podcasting studios and influencers that they plan to incorporate heavily into the podcasting content being offered and hope they can gain a brand new audience on their platform. Spotify plans on using their powerful data analytics to deliver mixed playlists of personalized music, news and podcasts to their audience along with “microcasts” and more customizable advertising options. By investing into this market, Spotify is staying relevant and up to date with the current trends and attracting new listeners and likewise business and creators to the platform. This ensures a sustainable business model from Spotify, a very smart move on their part. On the other hand, music streaming services such as Tidal have had little success comparatively. When Tidal had its first debut, the deck was stacked in its favor; celebrity endorsements, Hi-Def audio streaming, exclusive album debuts and music-creator friendly policies should have given Tidal immediate success. However, it’s high cost and poor marketing led to a bust. Making sure the service differentiates itself from the competition is where Tidal had failed. From the Rolling Stone, Amazon Music is offering their Amazon Music HD service which now detracts from Tidal's original offering further and will probably take Tidal's potential customers as well. All that's left is Tidal's celebrity connections and artist-friendly deals that ensure the creators of the music get their fair share which is still a big problem when it comes to music streaming services like Spotify. I think that consumers would be willing to pay more for the service if it meant that their favorite artists were being treated fairly along with listening to their music in High Definition. It is unfortunate that they could not capitalize on these offerings initially.
Beer, Jeff. “Just like That, Spotify Is Now a Podcasting Powerhouse.” Fast Company, Fast Company, 10 Mar. 2020, www.fastcompany.com/90457688/spotify-most-innovative-companies-2020.
“Big 4 Streamers Gain Market Share.” High Resolution Audio, 9 Dec. 2019, www.hiresaudio.online/big-4-streamers-gain-market-share/.
Ingham, Tim. “Has Amazon Already Figured Out the Future of the Music Streaming Business?” Rolling Stone, 14 Jan. 2020, www.rollingstone.com/music/music-features/amazon-future-of-streaming-936900/.
Brent Costantino
ReplyDeleteI believe that out of all the streaming services that Apple Music has the most sustainable business model due to their brand recognition. In the early days of the Ipod, users were forced to download their music through Itunes, and many people have become accustom to using Apple products for their music consumption. Apple Music has a simple layout, and is extremely organized with regards to an individual’s personal music library. According to an article published by High Resolution Audio, “Apple and Amazon both grew market share with 18% and 12.6% respectively.” Apple Music has continued to grow over the years because they are in the top two of streamers for music with respects to revenue worldwide. As soon as Apple users open the Apple Music app it takes them right to their music library, and the app organizes the music by playlists, artists, albums, songs and downloaded music. The app makes it very simple for users to access their music, and share it with their friends. Apple Music incorporated a section within the app which specifies what type of new music someone may like based on their previously downloaded music. A lot of users find this to be a convenient way of finding new tunes. According to Amy Wang, Ethan Millman and Tim Ingham of the Rolling Stones publication stated, “Last year, music streaming services like Spotify, Pandora, and Apple took their artist-facing data analytics platforms up a notch, boasting about how such platforms can offer an unprecedented degree of understanding about one’s own audience. In my opinion, Apple Music does a great job of this, and really seems to understand what music their individual users like listening too. This will build a trust amongst users and the company because it seems as though the company understands what they like, and attempts tailoring content specifically for them. Kif Leswing of CNBC wrote in April 2019, “Apple Music has passed Spotify in terms of paid U.S. subscribers, The Wall Street Journal reported on Friday.” Not only is this a huge milestone for Apple Music, but it is a sign of what is to come. Apple Music is steadily on the rise, and their does not appear to be an end to their rise in sight. I feel as though Spotify has reached its peak, and Apple Music will evolve with upgraded Apple software installed in their newest Iphones. The Apple Music experience will only get better, and more convenient for its users. Paid subscriptions represents a customer’s satisfaction with the company, and as of right now, Apple Music is the number one streaming platform in that category.
Works Cited
ReplyDeleteBouma, Luke. “Amazon Is Losing Millions on Prime Video, But It Doesn't Care.” Cord Cutters News, 27 Feb. 2017, www.cordcuttersnews.com/amazon-losing-millions-prime-video-doesnt-care/.
leswing, kif. “Apple Music Has Reportedly Passed Spotify in Paid Subscribers in the US.” CNBC, CNBC, 5 Apr. 2019, www.cnbc.com/2019/04/05/apple-music-has-reportedly-passed-spotify-in-paid-subscribers-in-the-us.html.
Wang, Amy X., et al. “Where the Music Business Is Going in 2020.” Rolling Stone, 21 Jan. 2020, www.rollingstone.com/music/music-features/music-business-stories-to-watch-2020-928849/.
Adelle Tedesco
ReplyDeleteOf the top streaming services available in music today, the biggest competitors doing best in the market are Apple Music and Spotify. (High Resolution Audio) Spotify has surged forward as being the most successful and most used streaming service for music, and in their success Spotify has managed to gain huge customer loyalty. Spotify has managed to develop such a successful business model for their streaming service, with the highest amount of subscriber on their platform, and the most amount of revenue in their subscriptions. While Spotify has managed to become the most successful streaming service available to the public, their main problem in their business model is that they may not be able to keep up this success and continue. (Glen Peoples) While there is risk for Spotify’s success to slow down, the customer loyalty that Spotify experiences will continue to support this streaming service in some way, proving that their business model is one of the best in the music industry. Along with Spotify, Apple Music is the second most successful streaming service in Music. (High Resolution Audio) While Apple Music’s subscriber numbers and revenue from subscriptions is long behind that of Spotify, the business model for Apple Music allows for growth in their service. Apple Music has opportunities for the streaming service to add new features and expand to a larger audience of subscribers.
Amazon Music is not well known in the music streaming industry, and fall well behind in terms of subscribers and revenue. (High Resolution Audio) Amazon Music is not as well known as the two top competitors, Apple Music and Spotify, but the business model for Amazon is proven to show that this streaming service is likely to surge forwards in the upcoming years creating the newest trends in music streaming and allowing for major success within the company. (Tim Ingham) Amazon Music has adjusted their business model to try and surge past the top two competitors and in the future try and become the number one competitor in the music service industry.
On the other side of success, the music streaming service that seem to be failing within the industry is Pandora. (High Resolution Audio) Pandora started out in the streaming industry as one of the most popular apps and services that people used, but as time went on Pandora fell to the bottom, losing all popularity. Pandora’s business model has fallen behind in trends and popularity, causing the service to struggle, and causing the service to see such low numbers in subscribers, revenue, and such low percentages in any gain they received in these categories. (George Szalai) Pandora has limited options, limited features and their business model is years behind that of Apple Music and Spotify. With more modern changes and a more widening business model, Pandora would be able to fix their struggle in the streaming competition, but with the way that Pandora is currently running this does not seem to be what is coming in the future of this service.
Sources“Big 4 Streamers Gain Market Share.” High Resolution Audio, 9 Dec. 2019, www.hiresaudio.online/big-4-streamers-gain-market-share/.
ReplyDeleteIngham, Tim. “Has Amazon Already Figured Out the Future of the Music Streaming Business?” Rolling Stone, 14 Jan. 2020, www.rollingstone.com/music/music-features/amazon-future-of-streaming-936900/.
Peoples, Glenn. “Spotify In the Black: What Would a Profitable '19 Mean for the Streaming Giant -- and Can It Keep It Up?” Billboard, 1 Nov. 2019, www.billboard.com/articles/business/8541702/spotify-profitable-streaming-service-analysis-impact-music-industry?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%2BTemplate%2BBB%3A%2BMulti%2BStory%2B-%2B2.0&utm_term=daily_digest.
Szalai, Georg. “SiriusXM Adds 210,000 Satellite Radio, 33,000 Pandora Subs, Touts Marvel Podcasting Deal.” The Hollywood Reporter, 31 Oct. 2019, www.hollywoodreporter.com/news/siriusxm-adds-210000-satellite-radio-33000-pandora-subs-1251130.
Fierce competition between streaming services is a defining point of the state of media consumption in 2020. Between the services of Apple Music, Spotify, Amazon Music and Google music are listeners searching for the best possible fit to their lifestyles, personalities and genre tastes. According to High Resolution Audio, the “Big Four” of streaming services are in the order of Spotify, Apple, Amazon and Google with Pandora coming in fifth. Tidal did not make the rankings, falling into the “other” category.
ReplyDeleteServices like Spotify and Apple Music are working harder to differentiate themselves from the competition, which does fit into the idea that different streaming services attempt to have different “feelings” to them in terms of aesthetic and branding. Spotify, for example, is moving big into the podcast scene with premiere and exclusive podcasts to the platform along with brand new categories and personalization on the home screen to emphasize the revamped library of podcasts available. According to an article by Fast Company, Spotify is now a podcasting powerhouse. With their recent acquisitions of Gimlet Media, Anchor, Paracast and The Ringer, Spotify has amassed a large collection of podcasting studios and influencers that they plan to incorporate heavily into the podcasting content being offered and hope they can gain a brand new audience on their platform. Spotify plans on using their powerful data analytics to deliver mixed playlists of personalized music, news and podcasts to their audience along with “microcasts” and more customizable advertising options. By investing into this market, Spotify is staying relevant and up to date with the current trends and attracting new listeners and likewise business and creators to the platform. This ensures a sustainable business model from Spotify, a very smart move on their part.
On the other hand, music streaming services such as Tidal have had little success comparatively. When Tidal had its first debut, the deck was stacked in its favor; celebrity endorsements, Hi-Def audio streaming, exclusive album debuts and music-creator friendly policies should have given Tidal immediate success. However, it’s high cost and poor marketing led to a bust. Making sure the service differentiates itself from the competition is where Tidal had failed. From the Rolling Stone, Amazon Music is offering their Amazon Music HD service which now detracts from Tidal's original offering further and will probably take Tidal's potential customers as well. All that's left is Tidal's celebrity connections and artist-friendly deals that ensure the creators of the music get their fair share which is still a big problem when it comes to music streaming services like Spotify. I think that consumers would be willing to pay more for the service if it meant that their favorite artists were being treated fairly along with listening to their music in High Definition. It is unfortunate that they could not capitalize on these offerings initially.
Beer, Jeff. “Just like That, Spotify Is Now a Podcasting Powerhouse.” Fast Company, Fast Company, 10 Mar. 2020, www.fastcompany.com/90457688/spotify-most-innovative-companies-2020.
“Big 4 Streamers Gain Market Share.” High Resolution Audio, 9 Dec. 2019, www.hiresaudio.online/big-4-streamers-gain-market-share/.
Ingham, Tim. “Has Amazon Already Figured Out the Future of the Music Streaming Business?” Rolling Stone, 14 Jan. 2020, www.rollingstone.com/music/music-features/amazon-future-of-streaming-936900/.