Posts Tagged ‘business model

13
Jul
16

The Economics of Music Streaming: Spotify

2016 is the pivotal year for the music streaming industry. After years of growth, we can expect a market consolation for the new few months with mergers, acquisitions and insolvencies. Thus, the question arises which music streaming services will survive that consolidation process. I try to assess who will be the winners and losers by analysing the financials of several music streaming companies. In the first part of this series I examine the global market leader in the music streaming market, the Swedish music streaming company Spotify.

Continue reading ‘The Economics of Music Streaming: Spotify’

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06
May
10

The Radiohead Revolution?

The British alternative rock band Radiohead caused a sensation when they announced on their website on October 1, 2007 that the new album In Rainbows was completed and would be released in 10 days for free. Fans were instructed to obtain a registration code in order to download the new album in MP3-format. Music consumers were left to determine the price on their own – ranging from US$ 0.00 to US $ 99.99. The response was overwhelming, and within a few weeks more than 1.2 million downloads were counted. According to the Internet market research firm comScore, 38% of the fans paid an average of US $ 6 per album, which resulted in US$ 2.4 million in revenue. Is this business model really as revolutionary as it appears at first sight? Continue reading ‘The Radiohead Revolution?’

26
Mar
10

Business model “Michael Jackson”

The death of Michael Jackson on June 25, 2009 triggered a sales boom for his music. The American industry magazine Billboard published Soundscan sales figures for his albums the week after the “King of Pop’s” death, showing three of his albums occupying the top positions in the U.S.-album-charts and five more of his albums entering the Billboard-Top-50-list. Jackson’s music also ruled the weekly iTunes and Amazon download-charts after his death. Continue reading ‘Business model “Michael Jackson”’




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