RIDO competes for music sales channels
Aug 12, 2010, 11:16
Two months ago, online music service provider RDIO formally launched. RDIO is Strom Niklas Zennstrom and Janus Friis co-founded the social-based online music sites, Nicholas and co-founder Janus had Kazaa , Skype and Joost three companies, the three companies were using P2P technology to download music theory, IP telephony and video sharing service. In the traditional record companies, telecommunications companies and television companies eyes, Nicholas and Jonas is terrifying, because they disturb the traditional industrial chain.
In 1999 the United States was born online music service provider Napster, Napster use of the computer industry has long existed in the P2P technology, through a strong central database to track the user's download, while coordination of the exchange process so that people can come here to exchange photos, documents, music. Since then, similar to the rise of P2P sharing site started, including Kazaa. Inspired by the Nicholas Jonas and soon recruited in Estonia an excellent team. 2000, Kazaa was born and put into operation.
As for the sharing and downloading of music has not been authorized by the copyright owner, the U.S. Recording Industry Association found that sites such as Napster of copyright infringement to begin siege. Eventually, Napster and Kazaa have been closed in (the 2008 U.S. appliance chain Best Buy bought Napster), before closing, Kazaa downloads up to 370 million times, making it wound up in the history of the Internet to download one of the largest software.
P2P technology on Nicholas and Jonas addictive then founded Skype and Joost, 2005 年 eBay Zengyi 2.6 billion to buy Skype. Although, after the eBay acquisition strategy proved to be mistakes, but Nicholas and Jonas, they can be harvested twice or three times for venture capital and fame. RDIO is their latest incubator company.
RDIO founded in 2008, positioning is based on the cloud streaming music service provider, simply put, is that it can provide users with a flood of online music player. In about two years, it became not made Nicholas and Jonathan Smith "new experiment." In fact, RDIO still developing during the streaming music service provider after another, the most famous is the British music site Spotify, which is already Europe's largest online music sites (not yet entered the U.S. market).
After the Napster and Kazaa in the development stage, the emergence of these to subversive attitude to new technology companies and cry as defenders of traditional record companies are beginning to establish new thinking can save the music industry's new model. Yi Spotify represented online music service provider, while continuing to use P2P streaming technology to provide digital music products, starting with the Take Four (Universal, Sony, EMI and Warner) as the representative of the traditional record company has established trade relations copyright . With Spotify as an example, according to the number of users, it paid the appropriate copyright fees to the copyright companies. It provides free online music listening service, for which users need to endure a certain amount of advertising audio; If you decide to become paying customers, it can enjoy higher quality music and no ads interference.
According to foreign media reports, the early year, Universal Music Group International company's senior vice president of digital music publicly promote a sustainable economic model Spotify, Spotify in the United Kingdom and Spain, the two regions to the global amount of payment according to the user music royalties, and in Sweden, Norway, Finland and France four countries based on user subscription revenue and advertising revenue split.
At that time, Wells has provided a set of data, he thought Spotify needs in any one country alone can 10% -12% of converting users into paid subscribers users Ji record companies can be sufficient to pay royalties. Spotify's CEO in March this year, has claimed that Spotify now has 7 million users, of which 32 million are paying subscribers. From this, Spotify has not yet reached 10% conversion rate, there have been comments that this is Spotify recently adopted in the United Kingdom once again invited the reason why the system. Slow progress due to copyright negotiations, Spotify delay in entering the U.S. market. Earlier this year it claims will enter the U.S. market.
However, the attacks were already there.
RDIO developed a two-year option for 2010 in the United States and Canada markets. And Spotify as, RDIO have vast amounts of online music (RDIO and Spotify has 5 million, respectively, said base and 8 million library), social sharing type of player menu, compatible with ITUNES, Pandora style radio (Pandora is an online music service provider, started in 2008 with the Apple partnership, eye-catching performance in the mobile terminal), pay to download music and other functions, but according to those who experience early feedback, RDIO of sociability than Spotify. At the same time, the North American market as the first of RDIO start using social networking sites to invite system, users need to pay 4.99 U.S. dollars a month to get an unlimited number of online music services, if the bundled PC client and mobile client application, you need to to pay 9.99 U.S. dollars a month. Here, there is no free music meal.
If RDIO can attract large numbers of users in a short time, which Apple may launch new service will also have impact on ITUNES. After the close lala.com, Apple is bound to launch with online jukebox service ITUNES. But, no one can guess, this quasi-mystical respect for the company when the launch goes on ITUNES.
As the largest U.S. music retailers (including online and offline), to launch cloud computing model ITUNES service, Apple's negotiations with the copyright must not easy, at the same time, Apple also need to consider is the walk "cloud "end of the existing business what the impact will be. Sponsored by the NPD to a consumer survey for Apple: More than a quarter of users said that cloud-based computing is very interested in free music services, NPD estimates that about 7 million to 8 million U.S. ITUNES users may order This online streaming media services to pay 10 dollars per month subscription fee.
Even so, according to NPD estimates, this market close to one billion U.S. dollars a year, equivalent to the current market size to download pay-mode two-thirds. Another Apple need to consider the question that the sociability of the new music distribution channels mean? Whether to give up the pricing, but with Facebook, Twitter interaction will change?