Analyst: Streaming Music May Already Be Hitting A Ceiling
Subscription services like Rdio, Mog, Rhapsody and Spotify promise to restore stronger growth to the music industry. The model’s best hope, Spotify, has four million paying subscribers.
But what are the real prospects for the sector? Music industry analyst Mark Mulligan, presenting at Future Music Forum in Barcelona on Thursday, sounded a note of caution…
“There is a natural ceiling of adoption of the people who are willing to pay $9.99 a month for music they don’t own“.
“If you look at growth from launch, Spotify is – at best – on par with where we should be. The likes of imeem were the future of the music industry once, too. The most Vodafone (UK) got to was about 600,000 customers – Spotify’s (UK) paying subscriber count is about 600,000 to 800,000“.
“This market should be much more dynamic than where we are now. It’s a niche proposition. The majority of mass-market consumers are still not interested in that pricepoint.”
Mulligan said he was not discrediting the efforts of music streaming services that are currently facing off against each other. Indeed, “It took Rhapsody 11 years to get to one million users, it took Spotify nine quarters.” But Mulligan noted the difficulty they will have in taking the model mainstream beyond early unlimited-access fans:…Read the full story at Paidcontent.org