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Music Businesses The Almighty Buck

Music Industry Is Keeping Streaming Services Unprofitable 118

Lucas123 writes "Music streaming services, forced to give from 60% to 70% of their revenue to the record industry, will never be profitable in their current state, a new report shows. Unless the services can monetize their user base by entering new product and service categories, or they can sell themselves to a larger company that can sustain them, they're doomed to fail. One method that subscription services might be able to use to achieve profitability is to up sell mobile deals or bundles to subscribers. For example, a select package of mobile services would be sold through the music service provider, the report from Generator Research suggested. 'Services like iTunes Match and Google and Amazon are already heading in this direction,' the report states. Another possibility would be for a larger company to purchase the music service or for the service to begin offering sanitized user behavioral data to advertisers, who could then better target a customer base."
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Music Industry Is Keeping Streaming Services Unprofitable

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  • by ackthpt ( 218170 ) on Friday February 14, 2014 @08:00PM (#46251549) Homepage Journal

    But, but, but! The world where they robbed foolish hick kids into signing away their lives for a paltry advance; they made payola to drive out talent and make room in playlists for their brand; they went after people who only wanted to listen to their record or CD when they were in their car or jogging. That's the only world they know!

    You can't expect an industry entrenched into that way of thinking is willing to emerge from their bunker.

"Well, it don't make the sun shine, but at least it don't deepen the shit." -- Straiter Empy, in _Riddley_Walker_ by Russell Hoban