Pandora Premium Takes on the On-Demand Streaming Game
While household names like Spotify and Apple Music boast a combined 120+ million users streaming music each month, Pandora has enjoyed the success of their proprietary “Music Genome Project” algorithm and their ability to draw users in with perfectly curated and personalized radio stations. Last year, Pandora announced it’s “Pandora Plus” service, offering listeners more replays and skips, as well as the ability to listen to offline radio stations. Now, after much anticipation, the biggest name in digital radio has announced “Pandora Premium”, their brand new on-demand streaming service.
Pandora Premium will function much like other monthly subscription streaming services, offering a similar catalog of over 30 million tracks for listeners to browse and discover. With its current user-base of 80 million, Pandora sees its transition into on-demand streaming as an opportunity for further growth. While it remains to be seen, there may be an advantage to joining the game late – for instance, Pandora won’t be focusing on ‘exclusives’ for big name releases, and instead hopes to utilize its personalization proficiencies to stand out in the crowd of streaming services when it comes to recommending songs to users based on their listening habits as a means of music discovery.
“We have very grand ambitions for what this can be,” Pandora CEO Tim Westergren said. “If we look around at the space right now, we just don’t think that there’s a product that’s done it right. No one has solved the ease of use and personalization part of the on-demand world. I don’t think there’s really a true premium product out there yet… we think we’re bringing something really different here.”
This development is great news for indie artists who hope to tap into Pandora’s user-base by making their releases available on-demand.
Ticketmaster Uses Software to Combat Bots More Effectively
Whether you’re a fan who paid out the nose for a ticket or lost out to what would have to be the fastest ticket-buying hands known to man, or you’re an artist who has had to deal with the backlash of bots buying up all their tickets, there’s a general consensus in the live music industry that these bots aren’t really doing consumers or artists any good. In fact, you could say most people feel that bots – which derive from software that immediately purchases tickets when they go on sale in bulk, only to re-sell at a higher cost to fans – are completely ripping people off!
Enter Ticketmaster’s “Verified Fan” program. Ticket scalping (re-selling tickets at higher costs), as it’s known, has become such a problem on the company’s platform that they’ve introduced new efforts to combat it by using customer data and new systems. For example, identifying fans’ purchasing history has been tested with lower-level tours to cut down on automated ticket buying systems and bot purchases. The program requires fans to register to buy tickets in advance (typically 48 hours before they go on sale); shortly after, Ticketmaster collects emails and scrubs out any believed to be connected to scalpers. Verified Fan is being used for pre-sales at the moment, but could be expanded for general sales in the future.
This is a meaningful attempt to make sure that artists – both major label and independent alike – are able to continue to offer tickets to their tour dates through this platform without worrying that their fans are getting ripped off.
Early Reports Suggest a Potential $16.1 Billion Year For Recorded Music During 2016
Each year, the IFPI (International Federation of the Phonographic Industry) announces official music industry figures to show how much was earned over four quarters. In March, Midia Research offered its own 2016 estimates ahead of the annual IFPI announcement – suggesting a 7% ($1.1. billion) year-over-year increase in the realm of recorded music at $16.1 billion.
Since the music industry entered into a major paradigm shift in the early days of Napster, and as illegal downloading took off across other platforms, this is considered a major uptick in annual growth. As Midia puts it, “Underpinning the growth was streaming which grew by 57% in 2016 to reach $5.4 billion, up $3.5 billion in 2015.”
While streaming music platforms were initially introduced as not only a way for fans to have legally licensed music at their fingertips but also to curb the trend in music piracy, there’s little doubt that artists and industry professionals alike have reaped the benefits of its popularity in the past couple of years. The report credits Spotify’s role in the growth, “accounting for 43% of the 106.3 million subscribers at the end of 2016.” But don’t sleep on Apple Music, Amazon Music and Deezer, who have been considered “strong contributors” to streaming growth last year.
Breaking revenue down by record label, we see that Universal, Sony and Warner Music made up a combined $11 billion in revenue, with independent labels generating $5.1 billion, or 31.3% of the global market share! As 2017 looks to offer increased figures, independent artists can rest assured that overall, recorded music can still be a viable revenue stream as more fans subscribe, listen, and discover.