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	<title>paidContent &#187; spotify</title>
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	<description>The economics of digital content</description>
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		<title>paidContent &#187; spotify</title>
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		<title>Spotify buys music discovery app Tunigo</title>
		<link>http://gigaom.com/2013/05/03/spotify-buys-music-discovery-app-tunigo/</link>
		<comments>http://gigaom.com/2013/05/03/spotify-buys-music-discovery-app-tunigo/#comments</comments>
		<pubDate>Fri, 03 May 2013 14:38:29 +0000</pubDate>
		<dc:creator>Laura Hazard Owen</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[music discovery]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[Tunigo]]></category>
		<category><![CDATA[twitter]]></category>
		<category><![CDATA[We Are Hunted]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=641995</guid>
		<description><![CDATA[Spotify has acquired the music app Tunigo, which helps users discover Spotify playlists and browse music and music-related news.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=228887&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Spotify has acquired Tunigo, a Stockholm-based music discovery app, for an undisclosed sum, AllThingsD <a href="http://allthingsd.com/20130503/spotify-takes-a-page-from-the-twitter-playbook-buys-music-discovery-app-tunigo/">reported Friday</a>.</p>
<p>Tunigo works on Spotify&#8217;s platform and also has iOS and Android apps. Tunigo lets users browse Spotify playlists, discover new music and read music reviews.</p>
<p>Tunigo&#8217;s app will remain on Spotify and its employees will work from Spotify&#8217;s New York and Stockholm offices.</p>
<p>&#8220;The acquisition fits into our overall strategy around music discovery, basically helping our users make sense of over 20 million tracks,&#8221; a Spotify spokesman told me.</p>
<p>Twitter recently <a href="http://gigaom.com/2013/04/18/twitter-rolls-out-music-app-for-iphone-and-web-with-itunes-spotify-and-rdio-integration/">launched</a> its own #Music app, which focuses on music discovery and was built by We Are Hunted, the company that Twitter acquired last year.</p>
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		<title>Rhapsody exec: splashy ads and free streaming promotions don&#8217;t work</title>
		<link>http://paidcontent.org/2013/04/22/rhapsody-vs-spotify-ads/</link>
		<comments>http://paidcontent.org/2013/04/22/rhapsody-vs-spotify-ads/#comments</comments>
		<pubDate>Mon, 22 Apr 2013 19:03:55 +0000</pubDate>
		<dc:creator>Janko Roettgers</dc:creator>
				<category><![CDATA[Jon Maples]]></category>
		<category><![CDATA[rdio]]></category>
		<category><![CDATA[rhapsody]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[streaming music services]]></category>
		<category><![CDATA[subscription-services]]></category>

		<guid isPermaLink="false">http://paidcontent.org/?p=228137</guid>
		<description><![CDATA[Rhapsody has some advice for its competitors Spotify and Rdio: Don't invest in splashy ads. Focus on featuring your service instead.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=228137&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>How do you convince people that they don’t need to own music anymore? That’s a question that streaming music services have been struggling with for years. Both Spotify and Rdio have been ramping up their ad spending in recent months to attract more subscribers to their respective services &#8212; but they’re doing it all wrong, says Rhapsody VP Product and Content Jon Maples.</p>
<p>Rhapsody has been offering music subscriptions since 2001, much than any of its competitors, and <a href="http://www.hypebot.com/hypebot/2013/04/rhapsody-offers-sage-advice-to-rival-upstarts.html">Maples said in a blog post Monday</a> that the company has made many of the same mistakes that he believes Spotify and Rdio are repeating now. One lesson Rhapsody learned the hard way is that ads for a music subscription service should be about the service, not artists or emotional connections:</p>
<blockquote id="quote-%e2%80%9cwe-tried-th"><p>“We tried the emotional connection to music with our Droga5-produced bubbles ad early on. The ad featured a woman who dove off a building into a bubble that immersed her into music. She dove into another bubble, and the music changed. Nice idea. Hard to understand in terms of product. Or value proposition. Or pretty much anything outside of diving off high rises, which we neither condone nor recommend.”</p></blockquote>
<p>In case you’re curious, here is the Rhapsody ad in question:</p>
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='604' height='370' src='http://www.youtube.com/embed/9hBN4roSRwg?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span>
<p>Compare that to this much less artsy Rhapsody ad, which performed much better, according to Maples:</p>
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='604' height='370' src='http://www.youtube.com/embed/ZFAELYtZG38?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span>
<p>And here’s one of the ads Spotify is running right now:</p>
<span class='embed-youtube' style='text-align:center; display: block;'><iframe class='youtube-player' type='text/html' width='604' height='370' src='http://www.youtube.com/embed/E-wbGBc4BuY?version=3&#038;rel=1&#038;fs=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;wmode=transparent' frameborder='0'></iframe></span>
<p>But Maples didn’t just criticize his competitors’ ads. He also voiced some doubts about the benefits of giving away free music to promote subscription services. In particular, he took issue with a promotional campaign run by Rdio, in which the company secured exclusive content to stream for free on Rdio.com. Guesstimating the conversion rate for that promotion, he concluded:</p>
<blockquote id="quote-%e2%80%9crdio-and-rh2"><p>“Rdio and Rhapsody are in the business of sourcing, identifying and enticing fans who are willing to pay for music. How you go about that is the hard part. My belief is that streaming companies have to sell the value of a music service and the benefits to customers instead of relying on an emotional connection to music, giving songs away or buying exclusive rights to a band’s new release.”</p></blockquote>
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			<media:title type="html">jroettgers</media:title>
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		<title>This is why Apple wants to launch iRadio</title>
		<link>http://gigaom.com/2013/04/16/apple-music-downloads-iradio-pandora/</link>
		<comments>http://gigaom.com/2013/04/16/apple-music-downloads-iradio-pandora/#comments</comments>
		<pubDate>Tue, 16 Apr 2013 17:04:02 +0000</pubDate>
		<dc:creator>Janko Roettgers</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[apple]]></category>
		<category><![CDATA[iRadio]]></category>
		<category><![CDATA[music subscription services]]></category>
		<category><![CDATA[pandora]]></category>
		<category><![CDATA[spotify]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=631501</guid>
		<description><![CDATA[People still buy a lot of music downloads, and most of them use iTunes to do so. That's why Apple is now building its own streaming service.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=227714&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Apple is still dominating the digital download business, with eight out of ten digital music buyers getting their tracks from iTunes in the fourth quarter of 2012, according to <a href="https://www.npd.com/wps/portal/npd/us/news/press-releases/the-npd-group-after10-years-apple-continues-music-download-dominance-in-the-u-s/">new numbers released Tuesday by the NPD Group</a>. Volume-wise, Apple sold 63 percent of all digital tracks in that quarter, followed by Amazon as a distant second with 22 percent. Apple wants to maintain that lead and keep its digital download biz healthy &#8212; and that’s why it’s looking to launch its own streaming service soon.</p>
<p>iRadio, as the service has been called by some, will <a href="http://www.theverge.com/2013/4/11/4214728/agreement-between-apple-and-universal-music-on-iradio-is-imminent">reportedly mimic the functionality</a> of Pandora, offering users continuous streaming with limited interactivity. The company is negotiating directly with record labels as opposed to relying on the type of compulsory licenses that are at the core of Pandora’s business model. That means that Apple might offer its users slightly more functionality and fewer restrictions when it comes to music selection and song skipping.</p>
<p>However, iRadio won’t offer on-demand streaming of complete albums like users have come to expect from full-blown music subscription services like Spotify and Rdio. That’s because the Spotify model directly competes with Apple’s music download business. Pandora, on the other hand, actually helps Apple sell more music.</p>
<p>The NPD Group noted Tuesday that 38 percent of U.S. consumers still think it&#8217;s important to own their own music. However, among Pandora users, that number was even higher. Here’s how NPD put it in its press release:</p>
<blockquote id="quote-%e2%80%9camong-consu"><p>“Among consumers who listened to music on Pandora and other free music-streaming services, 41 percent reported that owning music was important to them; in fact, many free streamers attributed buying more downloads to their discovery on a radio or via an on-demand service.”</p></blockquote>
<p>The company didn’t make any data available about people who pay for a streaming subscription, but I wouldn’t be surprised to see significantly lower interest in music ownership amongst users who pay for unlimited access.</p>
<p>That’s why it’s smart for Apple to invest in iRadio. The goal is not to kill Pandora, but to actually bring that type of radio service to more users, and keep them from switching to a full-blown access model. In other words: It’s not about Pandora, and all about Spotify.</p>
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		<slash:comments>6</slash:comments>
	
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			<media:title type="html">jroettgers</media:title>
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		<title>Spotify hits 6 million paid users as market for music streaming heats up</title>
		<link>http://paidcontent.org/2013/03/12/spotify-hits-6-million-paid-users-as-market-for-music-streaming-heats-up/</link>
		<comments>http://paidcontent.org/2013/03/12/spotify-hits-6-million-paid-users-as-market-for-music-streaming-heats-up/#comments</comments>
		<pubDate>Tue, 12 Mar 2013 15:13:20 +0000</pubDate>
		<dc:creator>Jeff John Roberts</dc:creator>
				<category><![CDATA[apple]]></category>
		<category><![CDATA[itunes]]></category>
		<category><![CDATA[music streaming]]></category>
		<category><![CDATA[Online Music]]></category>
		<category><![CDATA[pandora]]></category>
		<category><![CDATA[radio]]></category>
		<category><![CDATA[rdio]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[subscription-services]]></category>

		<guid isPermaLink="false">http://paidcontent.org/?p=225823</guid>
		<description><![CDATA[A report shows that music subscription service Spotify continues to grow at a rapid pace. The growth validates Spotify's business model but is also inviting a growing cluster of rivals.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=225823&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Music subscriptions services, which provide an alternative to purchasing songs on sites like iTunes, continue to gain in popularity. One example is Sweden-based Spotify, which is expanding rapidly across the globe and has now added another 1 million paid subscribers in the last three months.</p>
<p>According to figures <a href="http://news.cnet.com/8301-14013_3-57573394/spotify-growing-like-mad-yet-so-far-to-go/">reported by CNET</a> and confirmed by Spotify, the company now has 24 million active users and 6 million paying subscribers across the world. Spotify is also growing rapidly in the United States, where it <a href="http://paidcontent.org/2012/12/06/spotifys-progress-challenging-rhapsody-but-freemium-gap-growing/">arrived in July 0f 2011</a> and is this week <a href="https://www.spotify.com/us/blog/">hosting musicians </a>at its &#8220;Spotify House&#8221; at the SXSW festival in Austin, Texas.</p>
<p>Despite the hype, the underlying economics of Spotify&#8217;s business model remain uncertain. The service is beholden to musicians and studios, which request a 70 percent cut, and it must contend with a growing list of competitors that include Pandora, <a href="http://paidcontent.org/2013/03/11/rdio-expansion-spotify-free-mobile-tier/">Rdio</a> and SoundCloud. Meanwhile, YouTube is expected to launch <a href="http://paidcontent.org/2013/03/05/youtube-set-to-launch-spotify-rival-as-music-streaming-gets-crowded/">a subscription service</a> of its own in coming months and <a href="http://gigaom.com/2013/03/06/report-apple-still-talking-about-a-music-streaming-service/">even Apple</a> is expected to get into the streaming game too.</p>
<p>This competition validates the underlying premise of Spotify &#8212; that people want access to a giant catalog of music instead of buying it piecemeal through iTunes &#8212; but the arrival of deep-pocketed rivals may hurt Spotify&#8217;s ability to compete in the longterm.</p>
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		<slash:comments>1</slash:comments>
	
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			<media:title type="html">spotify-android</media:title>
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			<media:title type="html">jeffjohnroberts</media:title>
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		<title>Rdio expands global footprint, Spotify reportedly extends free mobile offering</title>
		<link>http://paidcontent.org/2013/03/11/rdio-expansion-spotify-free-mobile-tier/</link>
		<comments>http://paidcontent.org/2013/03/11/rdio-expansion-spotify-free-mobile-tier/#comments</comments>
		<pubDate>Tue, 12 Mar 2013 00:00:48 +0000</pubDate>
		<dc:creator>Janko Roettgers</dc:creator>
				<category><![CDATA[music-business]]></category>
		<category><![CDATA[pandora]]></category>
		<category><![CDATA[rdio]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[subscription-services]]></category>

		<guid isPermaLink="false">http://paidcontent.org/?p=225807</guid>
		<description><![CDATA[Rdio is coming to Austria, Ireland, Italy and four other countries. Spotify, meanwhile, plans to offer free mobile radio around the world.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=225807&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p><a href="http://www.rdio.com">Rdio</a>, the music subscription service backed by the founders of Skype and KaZaA, is expanding to Austria, Ireland, Iceland, Italy, Mexico, Latvia and Lithuania. That brings the total number of countries with a Rdio presence to 24. The announcement of the expansion comes on the same day as <a href="http://www.bloomberg.com/news/2013-03-11/spotify-said-expanding-pandora-like-web-radio-worldwide.html">a Bloomberg report</a> stating that Spotify is negotiating to bring its free, ad-supported mobile service tier to all of the countries it is operating in.</p>
<p>Rdio, just as a refresher, is a subscription service that tries to set itself apart from market leader Spotify <a href="http://gigaom.com/2012/10/25/rdio-two-year-launch/">with a different take on social music curation</a>. The company offers limited free music for up to six months, but doesn’t do ads.</p>
<p>That’s different from Spotify, which launched <a href="https://www.spotify.com/us/blog/archives/2012/06/19/free-mobile-radio/">a free, ad-supported mobile radio service</a> in the U.S. last summer. The company is now looking to expand its free mobile tier to all of its 17 territories, Bloomberg reported Monday. Deals for such an offering are still under negotiation, but Spotify could start with its free streaming as early as April.</p>
<p><a href="http://gigaompaidcontent.files.wordpress.com/2013/03/ifpi-subscription-data.jpg"><img  alt="ifpi subscription data" src="http://gigaompaidcontent.files.wordpress.com/2013/03/ifpi-subscription-data.jpg?w=300&#038;h=280" width="300" height="280" class="alignright size-medium wp-image-225812" /></a>Spotify’s free mobile service is more like Pandora, offering users limited interactivity with the hopes that some are going to subscribe to a full-service offering. And the interest in music subscriptions is definitely growing: Industry association IFPI’s latest Digital Music report (<a href="http://ifpi.org/content/library/DMR2013.pdf">PDF</a>) claims that worldwide, 20 million consumers paid for music subscriptions in 2012. And in Europe, subscription services made up for 20 percent of all digital music revenues during that time period.</p>
<p>That number was largely driven by a strong showing in Northern Europe, which is Spotify’s home turf &#8211; but services like Rdio seem to bet that this success story can be repeated in countries like Austria as well.</p>
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		<title>Music site This Is My Jam could spin out from Echo Nest</title>
		<link>http://gigaom.com/2013/01/13/music-site-this-is-my-jam-could-spin-out-from-echo-nest/</link>
		<comments>http://gigaom.com/2013/01/13/music-site-this-is-my-jam-could-spin-out-from-echo-nest/#comments</comments>
		<pubDate>Sun, 13 Jan 2013 13:00:40 +0000</pubDate>
		<dc:creator>Bobbie Johnson</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Andreas Jansson]]></category>
		<category><![CDATA[data]]></category>
		<category><![CDATA[Echo Nest]]></category>
		<category><![CDATA[facebook]]></category>
		<category><![CDATA[Hannah Donovan]]></category>
		<category><![CDATA[last.fm]]></category>
		<category><![CDATA[Matthew Ogle]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[music data]]></category>
		<category><![CDATA[Online Music]]></category>
		<category><![CDATA[pandora]]></category>
		<category><![CDATA[Ralph Cowling]]></category>
		<category><![CDATA[social-media]]></category>
		<category><![CDATA[song-sharing site]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[the echo nest]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=601406</guid>
		<description><![CDATA[A year after it launched as a skunkworks project inside music data company The Echo Nest, trendy social music site This Is My Jam is "looking at options" for going independent — as well as getting ready to launch some fun new site exploration features.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=223254&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Buzzy song-sharing site <a href="http://www.thisismyjam.com">This Is My Jam</a> could be going independent from its parent company as it prepares to take the next step in its evolution.</p>
<p>The site, which lets people share their favorite music track-by-track, has proven an underground hit online less than a year after launching publicly: more than 100,000 users have signed up, sharing over 900,000 songs. But the London-based service was started as a pet project inside music data company <a href="http://www.echonest.com">The Echo Nest</a> — and it&#8217;s now exploring what happens next.</p>
<p>&#8220;Up until this point we&#8217;ve been incubated by The EchoNest, but now we&#8217;re looking at options for spinning out in our own right,&#8221; creator Matthew Ogle told me.</p>
<p>It&#8217;s been an unusual course for This Is My Jam so far — in fact, Ogle says that the site &#8220;wasn&#8217;t supposed to happen for a whole bunch of reasons&#8221;. Chief among them? The fact he&#8217;d decided to move out of the online music industry after leaving his role as head of web product at <a href="http://www.last.fm">Last.fm</a> back in 2010.</p>
<p><a href="http://gigaom2.files.wordpress.com/2013/01/timj-logo_cs5.jpg"><img src="http://gigaom2.files.wordpress.com/2013/01/timj-logo_cs5.jpg?w=230&#038;h=300" alt="This Is My Jam logo" width="230" height="300"  class="alignleft size-medium wp-image-601414" /></a>&#8220;Despite swearing off online music forever, in less than a year I&#8217;d been convinced by the awesome folks at The Echo Nest that we could do some cool stuff together,&#8221; he says. &#8220;They didn&#8217;t hire me to make Jam, they hired me in a dual role to be their man in Europe — evangelizing at hackdays, talking to developers — and also to be a kind of internal product skunkworks, prototyping stuff based on new APIs and using that to spark new direction that The Echo Nest could be going with their data.&#8221;</p>
<p>But when it turned out that Jam, an idea he&#8217;d been throwing for a while, had more going for it than the other skunkworks proposals, Ogle&#8217;s focus switched and the parent company funded development. Jam now has four full-time staff, as Ogle brought on former Last.fm refugee Hannah Donovan, and engineers Ralph Cowling and Andreas Jansson.</p>
<h2 id="the-failure-of-frictionless">The failure of frictionless</h2>
<p>The site is one of my favorite services to have launched in the last year or two, and it&#8217;s one I&#8217;ve found myself going back to more often than I expected. Posting your favorite tracks and browsing the tracks of others turns the site into a curious mixture of status update and radio station. It&#8217;s a great tool for telling people about the music you like — lots of people use it to showcase their mood, for example. But it&#8217;s also a treasure trove of music, allowing you to dig around in the tastes of others. Because it&#8217;s almost exclusively focused on what people are listening to <em>now</em>, it has a real-time quality to it… yet the conscious decision that goes into making your choice means that the end result is more personal than Pandora but way more curated than Spotify&#8217;s frictionless sharing. </p>
<p><a href="http://gigaom2.files.wordpress.com/2013/01/thisismyjam.jpg"><img src="http://gigaom2.files.wordpress.com/2013/01/thisismyjam.jpg?w=300&#038;h=200" alt="This Is My Jam screenshot" width="300" height="200"  class="alignleft size-medium wp-image-601407" /></a>In fact, says Ogle, the failure of frictionless sharing to provide anything more than a fleeting dip into a raging river of data left an interesting gap for Jam to fill.</p>
<p>&#8220;I couldn&#8217;t quite believe that in 2011 that social song sharing wasn&#8217;t just a solved problem,&#8221; he explains. &#8220;One thing that we talked about at last.fm a lot — you know that amazing moment in real life when someone grabs you and say &#8216;you have to hear this song, check it out&#8217; and they put the headphones in your ears or put a record on. Anyone who cares about music even a little bit has had that moment.&#8221;</p>
<p>&#8220;We&#8217;re in this golden age of social media, we&#8217;re always connected to all of our friends at all times, and there&#8217;s big data around music — Spotify and Facebook have basically taken scrobbling to the mainstream — [so] there should be more ways than ever for me to go &#8216;I want to hear some new tunes, what are my friends listening to?&#8217; and get good stuff… not just whatever they happened to accidentally listen to on Spotify. Conversely there was no way for me to share a song that people would still see five hours later. Everything was being forced in real-time.&#8221;</p>
<h2 id="curationexploration">Curation/exploration</h2>
<p>Donovan, who heads up the site&#8217;s design, points out that isn&#8217;t just vanity that drives — the performative aspect of social media where you are showing off your taste to others — but a sort of shared curation where users collaborate to uncover interesting tracks, point to classics or dig up forgotten material. </p>
<p>&#8220;This was actually really cool when we discovered this happening, because there&#8217;s no other music service on the internet where it&#8217;s OK to have old stuff mixed in too,&#8221; she says. &#8220;Either everything is organized around the music data thing — singles live inside albums that live inside artists — or it&#8217;s promotional in some respect, in which case they&#8217;re always pushing the latest album or the latest single that just came out.&#8221;</p>
<p>&#8220;On top of that I think there&#8217;s something around our culture today that&#8217;s driven by newness, and how things on the internet always have to be the latest and the newest. I heard somebody say when you&#8217;re curating something, you don&#8217;t necessarily want just the latest or the newest, you want to dig up old things that were really great and put them back in context alongside newer things, or mixed in with other stuff. That&#8217;s the job of the curator and that&#8217;s what makes it really enjoyable for the user or the observer.&#8221;</p>
<p>&#8220;We thought about curation a lot when we were starting Jam. The overall effect is that our users became the curators of this music, and we wound up with this lovely space where you could get Prince and Fleetwood Mac right next to the latest trendy pop band.&#8221;</p>
<p><a href="http://gigaom.files.wordpress.com/2010/01/echonest.jpg"><img src="http://gigaom.files.wordpress.com/2010/01/echonest.jpg?w=708" alt="echonest"    class="alignright size-full wp-image-251805" /></a>That is, in turn, helping the product develop further forward. Coming very soon are some new additions to the site&#8217;s <a href="http://www.thisismyjam.com/explore">Explore</a> pages, which will offer up some new ways for users to browse the site. Explore categories will include &#8220;Breaking&#8221; (songs that have been jammed for the first time recently, and subsequently shared), &#8220;Rare&#8221; (songs that have been jammed only once), and another one that lists just the first jams of newly-registered users. Although it could act as a way for users to introduce themselves to the service, the first jams could also become a sort of <em>Greatest Hits</em> package.</p>
<p>&#8220;A lot of people sign up and start with their favorite song of all time,&#8221; says Ogle. </p>
<br />  <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=223254&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" /><p><a href="http://pubads.g.doubleclick.net/gampad/jump?iu=/1008864/PaidContent_RSS_300x250&#038;sz=300x250&#038;c=585763"><img src="http://pubads.g.doubleclick.net/gampad/ad?iu=/1008864/PaidContent_RSS_300x250&#038;sz=300x250&#038;c=585763" /></a></p>]]></content:encoded>
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		<title>Spotify gets $100M, including $10M from Coca-Cola</title>
		<link>http://gigaom.com/2012/11/14/spotify-coca-cola/</link>
		<comments>http://gigaom.com/2012/11/14/spotify-coca-cola/#comments</comments>
		<pubDate>Wed, 14 Nov 2012 20:08:39 +0000</pubDate>
		<dc:creator>Janko Roettgers</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[funding]]></category>
		<category><![CDATA[spotify]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=584731</guid>
		<description><![CDATA[Want a coke with that $3 billion valuation? Spotify apparently does: The company just raised an additional $100 million in funding, with Coca-Cola being one of the more notable new investors. Coke has been experimenting with digital music for some time.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=220668&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p><a href="http://www.spotify.com">Spotify</a> has completed a new round of financing totaling $100 million, <a href="http://mediadecoder.blogs.nytimes.com/2012/11/14/spotify-attracts-investments-from-coca-cola-and-fidelity/">according to a report from the New York Times</a>. The round, which values the company at $3 billion, reportedly includes a couple noteworthy new investors: The Coca-Cola company chipped in $10 million, and Fidelity Investments is bringing around $15 million to the table. Goldman Sachs’ share of the new investment is about half, and the remaining $25 million came from existing investors, according to the Times. A Spotify spokesperson declined to comment when contacted by GigaOM.</p>
<p>There had been <a href="http://professional.wsj.com/article/SB10001424127887324894104578109482459713880.html">a number of reports</a> about Spotify seeking new financing in recent weeks, including some that <a href="http://adage.com/article/digital/coca-cola-seeking-investment-spotify/237690/">pointed to a high likelihood of Coke being involved</a>. The soda maker struck a first partnership with Spotify in April, which included Spotify powering Coke’s music sites and Coke adding Spotify to its Facebook presence. Coke also sponsored a Spotify music hackathon in New York earlier this year.</p>
<p>This isn’t the first time Coca-Cola is trying its luck at digital music: The company launched its own download store dubbed MyCokeMusic in the UK and other countries in 2004, but the endeavour was hampered by its use of Windows media DRM, and <a href="http://www.guardian.co.uk/technology/blog/2006/jun/20/mycokemusicdro">eventually closed down in June of 2006. </a></p>
<p>The new round of funding brings the total amount of money raised by Spotify to $288 million.</p>
<p><em>Image <a href="http://creativecommons.org/licenses/by/2.0/">courtesy of</a> Flickr user <a href="http://www.flickr.com/photos/epitti/256713558/">Erik Pitti.</a></em></p>
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		<title>Curtains for MOG: Townsquare buys MOG&#8217;s blog &amp; ad business</title>
		<link>http://gigaom.com/2012/08/24/curtains-for-mog-townsquare-buys-mogs-blog-ad-business/</link>
		<comments>http://gigaom.com/2012/08/24/curtains-for-mog-townsquare-buys-mogs-blog-ad-business/#comments</comments>
		<pubDate>Fri, 24 Aug 2012 13:23:07 +0000</pubDate>
		<dc:creator>Om Malik</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[david hyman]]></category>
		<category><![CDATA[mog]]></category>
		<category><![CDATA[spotify]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=556522</guid>
		<description><![CDATA[The market forces conspired against MOG, a music service and blog network started by David Hyman. The growing popularity of Spotify saw the company fall on hard times and was sold in pieces. One half went to Beats Audio &#38; Townsquare media has bought the other half.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=216882&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Townsquare Media of Greenwich, CT, that runs live events and owns radio properties <a href="http://townsquaremedia.com/townsquare-media-group-acquires-mog-music-network-and-will-rename-the-business-townsquare-media/">has bought</a> the MOG Music Network business. The news was <a href="http://allthingsd.com/20120823/the-rest-of-mog-finds-a-home-radio-chain-townsquare-buys-ad-network/">first reported earlier this morning</a> by Peter Kafka who says the transaction was around $10 million.   The terms of the deal weren&#8217;t officially announced. These are blogs, reviews sites, concert &amp; event information sites, artist sites and lyrics sites that were part of music subscription service MOG, that was started by David Hyman. MOG&#8217;s subscription service was <a href="http://gigaom.com/2012/07/03/why-mog-sold-for-only-14m/">acquired by Beats Audio in July for $14 million</a>.</p>
<p>MOG network has more than 62 million monthly U.S. unique visitors and 170 million monthly global unique visitors, making it the largest music-focused ad network in the United States. GigaOM had heard that MOG was hoping to sell its music service &amp; blog-network business separately. MOG had raised $25 million in venture funding. This concludes our coverage of MOG.</p>
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		<title>With 15M active users, Spotify adds free radio on Android</title>
		<link>http://gigaom.com/mobile/with-15m-active-users-spotify-adds-free-radio-on-android/</link>
		<comments>http://gigaom.com/mobile/with-15m-active-users-spotify-adds-free-radio-on-android/#comments</comments>
		<pubDate>Tue, 31 Jul 2012 13:28:03 +0000</pubDate>
		<dc:creator>Kevin C. Tofel</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[android]]></category>
		<category><![CDATA[digital-music]]></category>
		<category><![CDATA[google]]></category>
		<category><![CDATA[mobile-apps]]></category>
		<category><![CDATA[Online Music]]></category>
		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[spotify]]></category>
		<category><![CDATA[tablets]]></category>

		<guid isPermaLink="false">http://gigaom.com/?p=548411</guid>
		<description><![CDATA[Spotify's conversion rate isn't bad: Out of 15 million active users, more than 4 million are paying subscribers. That number may soon increase thanks to Android support for Spotify radio, which is ad-supported and offers unlimited playback of Spotify's entire digital music catalog.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=215573&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Android phones in the U.S. gained a free version of Spotify on Tuesday: The music service announced <a href="http://www.spotify.com/us/blog/archives/2012/07/31/radio_comes_to_android/">Spotify radio at no charge with the latest version of its Android software</a>. The free mobile edition of Spotify&#8217;s radio stream works the same as on a desktop; there&#8217;s no charge to listen to music but you&#8217;ll hear occasional advertisements unless you upgrade to Spotify Premium.</p>
<p><a href="http://gigaom2.files.wordpress.com/2012/07/android-solo-219x300.jpg"><img  title="Android-solo-219x300" src="http://gigaom2.files.wordpress.com/2012/07/android-solo-219x300.jpg?w=102&#038;h=140" alt="" width="102" height="140" class="alignleft size-thumbnail wp-image-548437" /></a>The approach is similar to that of Pandora, which has long offered ad-supported online music tracks and subscription plans. And like Pandora, the updated Spotify for Android allows the creation of stations based on artist, album or playlist. You can skip a song if it&#8217;s one you&#8217;d rather not hear and Spotify will learn not to play it again. Give a &#8220;thumbs up&#8221; to a favorite song and Spotify will save it to a &#8220;Liked from Radio&#8221; playlist on the desktop.</p>
<p>Surely, Spotify hopes that a taste of the free version will entice subscriptions. But the company&#8217;s conversion rate isn&#8217;t too shabby; even before this move. Ken Parks, Spotify&#8217;s Chief Content Officer and Managing Director of Spotify N. America recently noted that Spotify has 15 million active users and over 4 million paid subscribers.</p>
<p>Aside from the ads, there&#8217;s no real limit to the free Spotify radio service, so it should appeal. Users have access to the millions of tracks in Spotify&#8217;s catalog on their Android smartphone or tablet. The <a href="https://play.google.com/store/apps/details?id=com.spotify.mobile.android.ui&amp;hl=en">updated app is available in the Google Play store</a> and supports devices running Android 2.1 and up, which is nearly all active devices on Google&#8217;s platform.</p>
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			<media:title type="html">Kevin C. Tofel</media:title>
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		<title>paidContent turns 10: A brief history of digital media</title>
		<link>http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/</link>
		<comments>http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/#comments</comments>
		<pubDate>Wed, 25 Jul 2012 14:29:07 +0000</pubDate>
		<dc:creator>Laura Hazard Owen</dc:creator>
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		<guid isPermaLink="false">http://paidcontent.org/?p=212965</guid>
		<description><![CDATA[Remember when Friendster was the hot social network, publishers doubted that ebooks would ever sell, and Netflix thought DVDs in red envelopes was the future? We do -- that was that state of digital media when paidContent launched in 2002. <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=paidcontent.org&#038;blog=33319749&#038;post=212965&#038;subd=gigaompaidcontent&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
				<content:encoded><![CDATA[<p>Remember when Friendster was the hot social network, publishers doubted that ebooks would ever sell, and Netflix thought DVDs in red envelopes was the future?</p>
<p>We do &#8212; that was that state of digital media when paidContent launched in 2002. Other weird things were happening back then too: People still got much of their news from television and newspapers, and they learned about major events <em>after</em> they had already happened.</p>
<div class="sidebar alignright">
<p><strong>Some memorable moments from the decade</strong>:</p>
<ul>
<li><a href="http://paidcontent.org/2012/07/25/decade-of-digital-media-flops-flips-and-predictions/">Media flops</a></li>
<li><a href="http://paidcontent.org/2012/07/25/decade-of-digital-media-flops-flips-and-predictions/">Not the next Facebook</a></li>
<li><a href="http://paidcontent.org/2012/07/25/decade-of-digital-media-flops-flips-and-predictions/">The art of making predictions</a></li>
</ul>
</div>
<p>There have been some huge shifts since 2002: Tablets and smartphones are now ubiquitous, lots of people read on their digital devices, and just about everyone is part of a social network or three. This summer is the tenth anniversary of our launch. In an effort to gain some perspective on the past decade in digital media, I&#8217;ve been reading back through paidContent&#8217;s archives &#8212; a collection of over 80,000 posts.</p>
<p>Since I was only a freshman in college when paidContent came to life, I often didn’t know, as I read through the stories from the early days, how things had begun or how they turned out. As I watched them unfold, I wanted to grab our readers&#8217; arms and give them advice (&#8220;Don’t buy that Zune!&#8221; &#8220;Invest in Facebook!&#8221; &#8220;Go for the good Twitter handle now!&#8221;). But I also realized how difficult it is to predict success.</p>
<p><a href="http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/shutterstock_24638284/" rel="attachment wp-att-212978"><img  title="10th birthday cake" src="http://gigaompaidcontent.files.wordpress.com/2012/06/shutterstock_24638284.jpg?w=708" alt=""   class="aligncenter size-full wp-image-212978" /></a></p>
<p>Some takeaways from my trip through the archives:  Some companies &#8212; AOL and Yahoo come to mind &#8212; have been consistently bad at predicting what consumers want. And a couple of companies, namely Apple and Amazon, have been very good at it. Also, being a native digital company helps, but it’s no guarantee of success (what up, MySpace?). And after all these years, it’s still not clear what content customers will pay for, or how much they’ll pay.</p>
<p><a href="http://paidcontent.org/?attachment_id=214906"><img  title="vintage TV, vintage television" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_108107702.jpg?w=300&#038;h=240" alt="" width="300" height="240" class="alignleft size-medium wp-image-214906" /></a><strong>Streaming and Moviebeaming</strong></p>
<p>What do analysts, CEOs and bloggers have in common? None of us can predict the future. <a href="http://www.google.com/url?q=http://paidcontent.org/tech/ebert-on-streaming-movies-online/&amp;sa=D&amp;usg=ALhdy2-iJnwLPK9D2x8gbgJ67xW90bUTBw">Roger Ebert joked in 2002</a> that “on-demand streaming movies on the Web, like HDTV, are five years in the future &#8212; and will be for at least another 10 years.”</p>
<p><a href="http://paidcontent.org/tech/no-late-fees-disney-will-beam/">If Disney’s Moviebeam had been the only game in town</a>, Ebert probably would have been right. When it launched in three cities in 2003, customers paid $6.99 a month to use a device that could hold 100 movies and plugged into the back of a TV set. They also had to pay for each movie they watched&#8211; billing was done via the phone line. The company went through various unsuccessful iterations before <a href="http://paidcontent.org/tech/419-moviebeams-crazy-story-continues-bought-by-indias-valuable-group/">India’s Valuable Group bought it in 2008</a>. It was never heard from again.</p>
<p>Netflix almost went down the same road. It had a <a href="http://paidcontent.org/tech/netflix-to-offer-moviebeam-like-box-for-downloads/">plan to release a Moviebeam-like</a> “proprietary set-top box with an Internet connection that could download movies overnight.” But instead, it decided to forge ahead with streaming &#8212; starting with <a href="http://paidcontent.org/tech/netflix-launching-streaming-movie-service-no-downloads-or-burns/">a complicated “quota hours” system in 2007</a> and moving to <a href="http://paidcontent.org/tech/419-netflix-makes-its-unlimited-online-movie-viewing-official-day-before-ap/">unlimited streaming in 2008</a>. By 2010, the majority of <a href="http://paidcontent.org/2010/04/02/419-time-inc-s-tablet-push-starts-with-time-mag-app-at-4-99-an-issue/">subscribers were streaming something</a>, and the company began offering <a href="http://paidcontent.org/2010/11/22/419-streaming-only-netflix-debuts-in-the-u-s-less-content-but-cheaper-fast/">streaming-only subscriptions</a>, though CEO Reed Hastings said that same year that the company would keep shipping DVDs until 2030. (We&#8217;ll see about that.)</p>
<p><a href="http://paidcontent.org/tech/abc-shows-to-go-subscription-on-itunes/">ABC was the first network to sell episodes</a> of its shows on iTunes, back in 2006, and to <a href="http://paidcontent.org/tech/first-look-abccoms-ad-supported-streaming-experiment/">stream shows free with ads</a> on ABC.com &#8212; and later on AOL. But by the time premium subscription service <a href="http://paidcontent.org/2010/06/29/419-its-official-hulu-plus-subscription-package-debuts-for-9-99-a-month/">Hulu Plus launched in 2010</a>, the platforms getting the attention were devices with built-in access, like Internet-enabled TVs, Blu-ray players, and tablets.</p>
<p><strong><a href="http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/handcomingoutofgrave-2/" rel="attachment wp-att-214946"><img  title="Hand coming out of grave" src="http://gigaompaidcontent.files.wordpress.com/2012/07/handcomingoutofgrave1.jpg?w=260&#038;h=300" alt="" width="260" height="300" class="alignright size-medium wp-image-214946" /></a>Return of the living dead</strong></p>
<p>Speaking of AOL: It&#8217;s something of a miracle that the company still exists. In 2000, when it merged with Time Warner, it was valued at $350 billion, and the next year, <a href="http://www.internetnews.com/isp-news/article.php/790471/Worldwide+AOL+Membership+Cracks+30+Million+Mark.htm">more than</a> 24 million people in the U.S. were paying for its Internet access service. By the end of last year, that number had dwindled to just 3.3 million subscribers. Here’s a quick recap of some of AOL’s miscues over the years:</p>
<ul>
<li><a href="http://paidcontent.org/tech/aols-new-enhanced-version-to-launch-next-week/">AOL Voicemail</a> ($5.95 per month)</li>
<li>A<a href="http://paidcontent.org/tech/aol-to-launch-brand-aimed-at-teenage-users/"> teen service called Red</a> (featuring “a talking head—using the image of an actual employee—that uses software to answer users’ questions”)</li>
<li>A <a href="http://paidcontent.org/tech/burger-king-aol-join-digital-music-burger-war/">digital music partnership</a> with Burger King</li>
<li>A <a href="http://paidcontent.org/tech/aol-attempts-high-speed-reinvention-launches-online-reality-show/">reality show</a> called “Gold Rush”</li>
<li><a href="http://paidcontent.org/tech/aol-buddy-lists-social-network-expands-with-aim-pages-phoneline/">Social networking site</a> AIM Pages</li>
<li>Going <a href="http://paidcontent.org/tech/new-aol-strategy-detailed-no-more-charges-for-e-mail-other-broadband-sub-se/">free</a></li>
<li>The hyperlocal <a href="http://paidcontent.org/2009/08/20/419-patch-media-launches-two-new-local-sites-names-publisher/">Patch blogs</a></li>
</ul>
<p>Though AOL was once a high flier, no other company ever liked it quite enough to buy it. Google <a href="http://paidcontent.org/tech/aol-google-done-deal/">bought a five-percent, $1 billion stake</a> in AOL in 2005, leading analysts to wonder if Microsoft missed out. That resulted in a <a href="http://paidcontent.org/tech/419-googles-726-million-writedown-on-aol-is-more-painful-to-time-warner/">$726 million writedown in 2009</a>. Time Warner <a href="http://paidcontent.org/2009/07/28/419-sec-watch-time-warner-buys-back-googles-aol-interest-for-283-million/">bought back Google’s stake</a> and <a href="http://paidcontent.org/2009/11/17/419-time-warner-will-spin-off-aol-on-dec-9-declare-dividend-of-aol-shares/">finally spun off</a> “the albatross” in December 2009.  AOL is still promising a bounceback. “The executive team expects a profitable content business by next year,” <a href="http://paidcontent.org/2011/05/04/419-aols-armstrong-more-focused-less-juggling/">CEO Tim Armstrong said</a> in May 2011.</p>
<p>Yahoo hasn&#8217;t fared much better. The company<a href="http://paidcontent.org/tech/yahoo-unveils-platinum-subscription-service/"> launched Yahoo Platinum in 2003</a>; for $9.95 a month, subscribers got access to audio and videos.  The program was <a href="http://paidcontent.org/tech/yahoo-to-kill-platinum-subscription-video-service/">dead by October of that same year</a>. It later tried a Twitter-wannabe <a href="http://paidcontent.org/2009/09/02/419-yahoo-tries-its-hand-at-a-microblogging-service/">microblogging service</a> (“Meme&#8230;where you share everything that you find that’s interesting,”). Perhaps the smartest move Yahoo ever made was <a href="http://paidcontent.org/tech/yahoo-decides-to-sit-out-of-aol-race-exclusive-negotiation-period-nearing/">not buying AOL</a>.</p>
<p>Where did these companies go wrong? In 2010, former Time Warner CEO Gerald Levin pondered that question <a href="http://www.nytimes.com/2010/01/11/business/media/11merger.html?pagewanted=all">in an interview with the New York Times</a> . The AOL-Time Warner deal was &#8220;undone by the Internet itself,&#8221; he said. &#8220;I think it’s something that no one could have foreseen, and to this day, whether Apple is going to dominate entertainment or whether Amazon is going to dominate publishing, all the old business plans are out the window. How do you get paid for content?&#8221;</p>
<p><strong><a href="http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/shutterstock_11181748/" rel="attachment wp-att-212971"><img  title="Wealth, success and a piggybank" src="http://gigaompaidcontent.files.wordpress.com/2012/06/shutterstock_11181748.jpg?w=300&#038;h=225" alt="" width="300" height="225" class="alignleft size-medium wp-image-212971" /></a>Know what’s cool? A billion dollars</strong></p>
<p>In 2006, <a href="http://paidcontent.org/tech/analyst-myspace-will-be-worth-15-billion-in-next-few-years/">an RBC Capital analyst estimated</a> that a certain social networking company would be worth $15 billion in a few years, based on “raw, unprecedented user/usage growth.”</p>
<p>Six years later, Facebook went public with a valuation of $104 billion. Too bad the analyst wasn&#8217;t talking about Facebook but about MySpace. The social networking company that Rupert Murdoch <a href="http://paidcontent.org/tech/fox-interactive-makes-big-splash-buys-intermix-and-myspace-for-580-million/">acquired for $580 million in 2005</a> sold for just $35 million <a href="http://paidcontent.org/2011/06/29/419-specific-media-buys-myspace-for-35-million-news-corp-to-retain-stake/">in 2011</a>.</p>
<p>Why did Facebook soar while MySpace &#8212; and other social networking services like Friendster &#8212; sank? It allowed people to build real connections using their actual personal information, and rolled out a product that was ready to scale and had good technology. Other companies realized sharing was important too &#8212; in 2005, <a href="http://paidcontent.org/tech/sharing-as-the-next-web-phase/">Yahoo SVP Jeff Weiner called sharing</a> “the next chapter of the World Wide Web” &#8212; but Facebook was able to implement it in a way that kept users coming back. The site surpassed Yahoo and AOL for “stickiness” in 2009, when Nielsen found users spending an <a href="http://paidcontent.org/2009/07/14/419-facebook-posts-big-gains-in-stickiness/">average of four hours and thirty-nine minutes a month</a> on Facebook.</p>
<p>Social has already disrupted some industries &#8212; witness the rise of Twitter and the way it has changed the way news is reported, with stories like <a href="http://gigaom.com/2012/02/29/if-you-think-twitter-doesnt-break-news-youre-living-in-a-dream-world/">Osama Bin Laden’s assassination breaking there first</a>. In a sign of the importance of these emerging platforms, newspapers like the Wall Street Journal and New York Times are launching “Everywhere” initiatives to deliver news to readers where they are already hanging out.</p>
<p><a href="http://paidcontent.org/?attachment_id=214908"><img  title="Burger and fries; fast food" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_107906957.jpg?w=300&#038;h=199" alt="" width="300" height="199" class="alignright size-medium wp-image-214908" /></a><strong>Fast food and music don’t mix</strong></p>
<p>Hard to believe it now, but there was real skepticism that iTunes’ 99-cent songs would be able to compete with peer-to-peer file-sharing services. &#8220;According to academics who’ve studied the economics of digital music distribution,&#8221; <a href="http://paidcontent.org/tech/dollar-songs-bargain-or-rip-off/">we wrote in 2003</a>, the year iTunes launched, &#8220;the cost still seems too high to attract users of peer-to-peer file trading services.” The piece cited an economist who believed “the appropriate price of a downloaded song is 18 cents.” In fact, Real Networks <a href="http://paidcontent.org/tech/realnetworks-dropping-song-price-to-49-cents-starts-ad-campaign-against-app/">dropped its song prices to $0.49</a> in an attempt to compete against Apple.</p>
<p>In the end, consumers choose selection and convenience over P2P networks. We called iTunes “<a href="http://paidcontent.org/tech/apple-to-debut-online-music-service-through-all-5-labels/">a kickstart for the micropayments industry</a>.” Was it? While Steve Jobs said in 2004 that <a href="http://paidcontent.org/tech/jobs-apple-will-not-meet-100m-song-download-goal/">Apple wouldn’t hit its one-year</a>, 100 million songs downloaded goal, <a href="http://paidcontent.org/tech/the-state-of-global-digital-music-market-sales-cross-11-billion/">global digital music sales crossed $1.1 billion in 2006</a>. In April 2008, <a href="http://paidcontent.org/tech/419-apple-surpasses-wal-mart-as-number-one-us-music-seller/">Apple surpassed Walmart</a>  as the largest music seller in the United States.</p>
<p>The company that arguably started the digital music revolution &#8212; Napster &#8212; didn’t survive. Once it no longer offered “free,” it was done, though it tried to reincarnate itself: launching a mobile music service, “Napster To Go,” <a href="http://paidcontent.org/tech/napster-launches-mobile-music-service-with-6-songs/">with AT&amp;T in 2004</a> (the one smartphone that supported it could hold up to 6 songs), <a href="http://paidcontent.org/tech/419-circuit-city-and-napster-launching-digital-music-store/">partnering with Circuit City</a> on a digital music store, getting itself <a href="http://paidcontent.org/tech/419-breaking-best-buy-to-acquire-napster-for-121-million/">acquired by Best Buy in 2008</a> ,and then being <a href="http://paidcontent.org/2011/10/03/419-rhapsody-is-acquiring-napster-subscribers-and-some-other-assets/">bought back by Rhapsody in 2011</a>. Unfortunately, Rhapsody was already losing out to newer (and free) streaming services like Pandora and Spotify.</p>
<p>The partnerships with Circuit City and Best Buy, though, were probably the kiss of death. One of the big trends of the past 10 years has been brick-and-mortar retail stores’ consistent failure to compete effectively against digital-native companies. Best Buy wasn&#8217;t the only retailer to try to crack the digital-content business &#8212; and fail: <a href="http://paidcontent.org/tech/target-rolling-out-music-service-possibly-movies/">Target</a> and <a href="http://paidcontent.org/2010/12/30/419-sears-follows-other-big-retailers-launches-digital-download-store/">Sears</a> both took a shot. And McDonald’s sold digital content <a href="http://paidcontent.org/tech/mcdonalds-to-serve-more-than-just-wi-fi/">over its WiFi network</a> and even <a href="http://paidcontent.org/tech/more-on-mcdonalds-dvd-rental-plans/">tried DVD rentals</a> in its restaurants.</p>
<p><a href="http://paidcontent.org/?attachment_id=214913"><img  title="Stack of books; open book" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_108360674.jpg?w=300&#038;h=200" alt="" width="300" height="200" class="alignleft size-medium wp-image-214913" /></a><strong>Do you like the feel of paper?</strong></p>
<p>Just as digital music didn’t really take off until Apple introduced the iPod, the ebook revolution didn’t take place until the arrival of the Kindle. In paidContent’s early years, ebooks were written off as a failure in part because publishers couldn’t figure out what to do with DRM. (In 2003, “temporary electronic ink” that would disappear after a few months <a href="http://paidcontent.org/tech/e-books-slow-to-catch-on/">was floated as a possible solution</a>.) Barnes &amp; Noble decided to <a href="http://paidcontent.org/tech/death-to-ebooks/">stop selling ebooks in 2003</a>, and Yahoo <a href="http://paidcontent.org/tech/yahoo-exits-e-books-biz-as-well/">stopped selling them in 2004</a>.</p>
<p>Meanwhile, Amazon and Google were pushing forward. <a href="http://paidcontent.org/tech/419-controversial-google-print-service-launched/">Google launched Google Print</a> &#8211; now called Google Book Search, and still besieged by lawsuits seven years later. <a href="http://paidcontent.org/tech/amazon-starts-its-own-online-book-content-service/">Amazon tested two now-defunct programs</a>: Amazon Pages, which allowed customers to buy access to digital copies of select pages from books, and Amazon Upgrade, which bundled print books with online access to the complete work.</p>
<p>Customers weren’t biting. Then Amazon came out with the <a href="http://paidcontent.org/tech/419-amazoncoms-kindle-book-reader-the-details/">Kindle in 2007</a> for $399. Less than two years later, Amazon was selling <a href="http://paidcontent.org/2011/05/19/419-amazon-now-selling-more-kindle-books-than-all-print-books/">more Kindle books than print books</a>, and ebooks now make up over 20 percent of some big-six publishers’ sales. Barnes &amp; Noble has had some success with its Nook e-reader and digital bookstore, but <a href="http://paidcontent.org/2011/07/19/419-bye-bye-borders-chain-shuttering-all-remaining-stores/">bankrupt Borders shuttered all its stores in 2011</a>. Meanwhile, the <a href="http://paidcontent.org/2012/04/11/everything-you-need-to-know-about-e-book-doj-lawsuit-in-one-post/">Department of Justice suit against Apple and five big publishers</a> for allegedly colluding to set e-book prices drags on.</p>
<p><a href="http://paidcontent.org/?attachment_id=214787"><img  title="Mobile apps; ringtones" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_102132289.jpg?w=300&#038;h=266" alt="" width="300" height="266" class="alignright size-medium wp-image-214787" /></a><strong>Good thing Steve Jobs looked beyond ringtones</strong></p>
<p>A <a href="http://paidcontent.org/tech/forbescom-survey-finds-users-will/">Forbes survey back in 2002 found</a> that “business professionals” would be willing to pay for &#8220;news content to be delivered to their cellular devices,” and some media companies tried early mobile experiments. <a href="http://paidcontent.org/tech/verizon-sees-200-million-opportunity-in-paid-yellow-pages/">Verizon o</a>ffered a cell phone version of the Yellow Pages &#8212; which, at $19.95 per year, gained 15,000 subscribers in three months. But starting in 2004, everyone decided the future was in ringtones. A <a href="http://paidcontent.org/tech/300-million-us-ringtone-market-for-2004/">$4 billion global business by the end of the year</a>, one company projected.</p>
<p>So, so many ringtones. You could buy them <a href="http://paidcontent.org/tech/rolling-stone-ringtone-service-launches/">from Rolling Stone</a> or from an <a href="http://paidcontent.org/tech/atm-like-machine-delivers-music-ring-tones-photos-at-retail-stores/">ATM-like device called E2Go</a>. A fall 2004 marketing campaign let you mix your own ringtones on Levi’s website. <a href="http://paidcontent.org/tech/billboards-ringtones-chart-launching-next-month/">Billboard launched a top ringtones chart</a>.</p>
<p>Could ringtones “prove to be a passing fad”? <a href="http://paidcontent.org/tech/ringback-tones-next-big-cellular-thing/">we wondered late in 2004</a>. Luckily, yes &#8212; a new technology came along to shake up the mobile market. No, it wasn’t the <a href="http://paidcontent.org/tech/the-espn-phone-costs-500/">$500 ESPN phone</a>, but the iPhone, which came out in 2007. And by opening its platform up to third-party app developers, Apple got users ready for <a href="http://paidcontent.org/2010/01/28/419-and-the-winner-is-ipad/">its next ecosystem-changing device, the iPad, in 2010</a>.</p>
<p><strong>Monetizing mobile</strong></p>
<p>Advertising has always been a fuzzy business &#8212; how exactly do you measure engagement and success? Well, that&#8217;s still the big debate about advertising in the digital era.  &#8221;<a href="http://paidcontent.org/tech/419-google-looks-for-more-integration-between-its-products-and-advertising/">If here&#8217;s anything that&#8217;s really holding back ad spending on the web, it&#8217;s the lack of good measurements</a>,&#8221; Tim Armstrong, then Google&#8217;s VP of national sales, said in 2007.</p>
<p>Mobile advertising has also faced obstacles. In 2006, <a href="http://paidcontent.org/tech/verizon-wireless-to-allow-advertising-next-month/">mobile carriers began allowing advertising</a> despite fears of annoying customers. Customers were indeed annoyed &#8211; <a href="http://paidcontent.org/tech/vast-majority-of-americans-annoyed-by-mobile-advertising-report-reveals/">79 percent of them found mobile advertising annoying</a>, according to a 2007 Forrester study &#8212; but they could “see the potential benefits of mobile advertising and marketing to themselves,&#8221; particularly if they could get a useful special offer or coupon.</p>
<p>Further complicating matters for advertisers: The smartphone market is fragmented among different brands &#8212; marketers don’t want to spend the money to create different ads for Android and iOS &#8212; and there are two mobile ad universes: mobile browser and apps.</p>
<p>Nevertheless, mobile advertising has gained ground, <a href="http://www.iab.net/media/file/IAB_Internet_Advertising_Revenue_Report_FY_2011.pdf">crossing  $1 billion in the U.S. for the first time in 2011</a>, according to the Interactive Advertising Bureau, totaling $1.6 billion for the year.</p>
<p>The next opportunity is social media advertising. And once again, it will be a challenge to figure out some standardized metrics. What’s a retweet worth, anyways?</p>
<p><a href="http://paidcontent.org/?attachment_id=214920"><img  title="Vintage cash register'; paywalls" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_9569677.jpg?w=300&#038;h=225" alt="" width="300" height="225" class="alignleft size-medium wp-image-214920" /></a><strong>Back to where we all began</strong></p>
<p>Though micropayments worked well for music when Apple launched iTunes, the path to payments for written content has been rockier. <a href="http://paidcontent.org/tech/micropayments-to-grow-to-11-billion-by-2009/">In 2004, we wrote</a> that “micropayments today are still characterized by a large number of competing transaction types” – including direct-to-bill, merchant aggregation, prepaid accounts and direct transfer – and “each of these face the current incumbent in digital content distribution: the flat-fee subscription model.”</p>
<p>Eight years later, it appears that the subscription model has won out. The iPad opened the door for magazine and newspaper publishers to create new revenue selling content on that platform, but the results have been mixed. When Rupert Murdoch’s “The Daily” iPad newspaper <a href="http://paidcontent.org/2011/02/02/419-murdochs-the-daily-launches/">launched in early 2011</a>, the company called it “the model for how stories are told and consumed.” We wrote, “The bet here is that while consumers are less and less likely to reach into their pocket for a few quarters to buy a newspaper, they might not care about the 14 cents on their credit card for a copy of an e-newspaper.” A year and a half later, The Daily has over 100,000 paying subscribers &#8212; but <a href="http://paidcontent.org/2012/07/13/virtual-life-on-the-line-the-daily-launches-wknd/">it&#8217;s living on borrowed time</a> and may not get through the five years its publisher has said it needs to break even.</p>
<p>Writing for the web, of course, has been around for awhile. At the beginning of the decade, blogging was called “nanopublishing,” and the question was how blogs could support themselves doing it. All sorts of models have arisen. For example, <a href="http://paidcontent.org/tech/yahoo-gawker-join-forces-in-licensing-distribution-deal/">Gawker tried a licensing deal with Yahoo</a>, but that relationship <a href="http://paidcontent.org/tech/yahoo-news-gawker-go-separate-ways/">ended a year later</a>. The deal “garnered way more attention than we expected, but less traffic,” Gawker CEO Nick Denton said in 2006.</p>
<p>Some bloggers have stayed independent and make a living from advertising (or from their day job); others write their blogs under a newspaper, website or larger magazine’s umbrella &#8212; see the <a href="http://andrewsullivan.thedailybeast.com/">Dish’s Andrew Sullivan</a>, <a href="http://fivethirtyeight.blogs.nytimes.com/">FiveThirtyEight’s Nate Silver</a>, <a href="http://www.washingtonpost.com/blogs/ezra-klein/">WaPo’s Ezra Klein</a>. Or, they go to work for the Huffington Post!</p>
<p><a href="http://paidcontent.org/2012/07/25/paidcontent-turns-10-a-brief-history-of-digital-media/shutterstock_100967785/" rel="attachment wp-att-214948"><img  title="Stack of magazines" src="http://gigaompaidcontent.files.wordpress.com/2012/07/shutterstock_100967785.jpg?w=300&#038;h=200" alt="" width="300" height="200" class="alignright size-medium wp-image-214948" /></a>Magazine companies have grappled with whether to bundle digital editions with print subscriptions or charge for them separately. Time Inc. &#8212; which first put digital editions of its magazines <a href="http://paidcontent.org/tech/time-inc-magazine-start-going-behind-aol-wall/">behind AOL’s paywall in 2003</a> &#8212; started out charging separately, but today Time Inc. and Condé Nast print subscribers get the digital edition free. Hearst, meanwhile, is charging separately, and it said its digital business in the U.S. became “solidly profitable” <a href="http://paidcontent.org/2012/01/03/419-hearst-u-s-digital-biz-solidly-profitable-for-the-first-time-in-11/">for the first time in 2011</a>.</p>
<p>Could there ever be a Netflix for magazines? Time tried it for print versions with <a href="http://paidcontent.org/tech/419-time-incs-maghound-service-launches-under-the-radar/">its 2008 Maghound service</a>. It<a href="http://paidcontent.org/2009/07/06/419-one-year-in-maghound-is-not-exactly-time-inc-s-best-friend/"> failed</a>, due to a lack of marketing and reader interest. Magazine publishers are <a href="http://paidcontent.org/2011/01/15/419-next-issue-lines-up-magazines-for-launch-of-digital-newsstand/">trying again with joint venture Next Issue Media</a>.</p>
<p>Many newspaper publishers, most notably the New York Times, tried paywalls at the start of the decade and then abandoned them – only to return to the model in the past couple years.  In its most recent earnings report, the NYT said it has 454,000 digital subscribers. Is that enough to sustain the newspaper in its 21st-century transition?  Probably the best answer to that came from  <a href="http://paidcontent.org/tech/419-new-york-times-to-close-timesselect-effective-wednesday/">Vivian Schille</a>r. But it was in response not to the NYT&#8217;s recent digital subscriber numbers, but to the NYT&#8217;s decision in 2004 to close the paper&#8217;s first paywall, known as TimesSelect. Schiller, then the SVP and general manager of NYTimes.com, was asked whether TimesSelect had worked.  “It did work,&#8221; she said. &#8220;It’s just a matter of as compared to what.”</p>
<p><em>Birthday cake photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=10th+birthday+cake&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1&amp;secondary_submit=Search#id=24638284&amp;src=7da60201f1d7d9146028dc7359f56979-1-14">Robyn Mackenzie</a>].</em></p>
<p><em>TV photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=tv+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=108107702&amp;src=88991357f50e63046399937b5cf32cab-1-22">Somchai Buddha</a>].</em></p>
<p><em>Zombie hand photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=zombie+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=103176701&amp;src=b7e3135469de79ae2b62c1467d496ae2-1-53">lineartestpilot</a>].</em></p>
<p><em>Piggybank photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=rich+man+sunglasses&amp;search_group=&amp;horizontal=on&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1&amp;secondary_submit=Search#id=11181748&amp;src=943093695026e351a097763ab5b51d20-1-56">cardiae</a>]</em></p>
<p><em>Fast food photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=burger+and+fries+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=107906957&amp;src=83f7ed779314ecff9dee4e3070980d36-1-28">Sergio Martinez</a>].</em></p>
<p><em>Book photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=book+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=108360674&amp;src=962c7381bb1f2c82ceeba04a96f07caf-1-54">TrotzOlga</a>].</em></p>
<p><em>Ringtones and apps photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=ringtones+white+background&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=102132289&amp;src=eafe3300d7eb1152e68bc95778d9cd87-1-0">violetkaipa</a>].</em></p>
<p><em>Cash register photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=searchx_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=vintage+cash+register+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=9569677&amp;src=18c2fe52bf8d4ca995d61e4ab88f85b7-1-36">titelio</a>].</em></p>
<p><em>Magazines photo courtesy of Shutterstock user [<a href="http://www.shutterstock.com/cat.mhtml?lang=en&amp;search_source=search_form&amp;version=llv1&amp;anyorall=all&amp;safesearch=1&amp;searchterm=stack+of+magazines+on+white&amp;search_group=&amp;orient=&amp;search_cat=&amp;searchtermx=&amp;photographer_name=&amp;people_gender=&amp;people_age=&amp;people_ethnicity=&amp;people_number=&amp;commercial_ok=&amp;color=&amp;show_color_wheel=1#id=100967785&amp;src=1a7f43ef53882df25626b047ef188edb-2-3">bernashafo</a>].</em></p>
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			<media:title type="html">laurahowen38</media:title>
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			<media:title type="html">10th birthday cake</media:title>
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			<media:title type="html">vintage TV, vintage television</media:title>
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			<media:title type="html">Wealth, success and a piggybank</media:title>
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			<media:title type="html">Burger and fries; fast food</media:title>
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			<media:title type="html">Stack of books; open book</media:title>
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			<media:title type="html">Mobile apps; ringtones</media:title>
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			<media:title type="html">Vintage cash register&#039;; paywalls</media:title>
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			<media:title type="html">Stack of magazines</media:title>
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