More Thoughts on Music Streaming

On our long-running thread on Rdio we’ve been talking a lot about artist fairness. While that’s certainly a major issue, my original point was that digital streaming is so persuasive that it will inevitably dominate the market of music consumption. It hasn’t exactly been an overnight success, but as I see countless Facebook friends and relatives “fall” to Spotify, it pretty much goes without saying that streaming is on its way to becoming the definitive platform consumers prefer for music.

Friends and family often ask me what I think of Spotify just when they’re dipping their toe into the waters of streaming. I’m actually more like a Rdio evangelist. And for the record, it seems unfair that Spotify is the dominator and Rdio the niche. I’ve come to the conclusion that digital streaming technology is so persuasive and such a revelation that whatever platform a consumer encounters first will be the one they likely stick with. For me that was Rdio as I dived into this before Spotify was even available in the US. At this point there’s still plenty of market-share up for grabs. I think that’s why we’re seeing Rdio billboards in Times Square. But Spotify has a huge brand advantage as their name seems to have become ubiquitous with streaming.

I’ve also realized that most people don’t listen to music the way I do (obsessively, as foreground and always looking for something new and unexpected). Rdio makes discovery of new music very easy and social. Spotify appeals more to people who prefer an iTunes approach. As I never loved iTunes, defecting to Rdio was quite simple as it has it’s own UI paradigm. Although I can’t understand it, iTunes is/was the preferred music consumption UI and that is part of Spotify’s advantage. Whereas Rdio is a greater (dare I say braver) leap into the new world of music streaming, Spotify eases new-comers in by simply not being that radical.

Beyond my digression into brand loyalties, the larger point is that consumers LOVE music streaming. In spite of all the moaning about artists not seeing money from streaming, this is the platform the consumers have chosen (or will choose). When it does become totally widespread and consumers are all paid subscribers (just like they pay/paid for cable) there simply must be a way to pay out viable incomes to those artists who have warranted it. The fact that you can find most major artists an streaming platforms means that major labels see the potential. The equation works for them and it works for consumers. It’s only a matter of time before it works for artists.

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