After seemingly endless negotiations with U.S. record labels, ad-supported music service Spotify has finally launched stateside. The service’s competitors include Rdio, MOG, iTunes and new cloud music services from Amazon and Google. Spotify has a freemium pricing model: users can listen for free on their desktops and laptops in an ad-laden music browser similar to iTunes. At $4.99 people can have ads removed, and at $9.99 users gain access to their libraries offline and on mobile devices.
Implications: Spotify is ad supported, so the service presents an alternative to Pandora and online radio stations as a vehicle for online audio advertising placements. The service will also see higher user engagement and exposure to advertising early on as users spend more time building their libraries and playlists, so brands that are early to advertise on the service are likely to see more success as Spotify builds its audience. Brands can also look into creating branded playlists that tap into a mindset, like summer fun, or promote celebrities and musicians linked to campaigns.
Cultural Macrotrend: Fingerprinting, Hyperlife
Friday, 15 July 2011
Posted by Jon Barnard at 11:33