Industry Related Blog Post

Sony Music is joining in the digital app. revolution offering an offline playback App, in line with MOG, and Rhapsody. The app offers consumers the ability to gain access to music while not having access to their mobile network or WIFI.

Billboard.biz explains how much of an impact these apps have on smart phones and tablet consumers due to mobile phone providers restricting the amounts of data user can stream.  Consumers having access to their music offline is a simple answer to the data cap some mobile companies have implemented.

This is a big deal for Sony Music  adding this app to their portfolio embracing technology and using it to adapt their business model to a digital age where consumers are not looking to buy physical cd’s so much as download single mp3’s is a step in the right direction.  This also provides them with a relevant platform to expose their artist, and in a sense provides a bit of encouragement for the music industry streamlining their old business models to adapt to the current state of technology.

ASCAP is also embracing the digital revolution. Expanding their old business model to embrace new multimedia platforms by extending music licenses to established outlets such as Hulu and Netflix, and in 2011 media outlets such as Spotify along with thousands of others signed blanket license agreements. As a result ASCAP has increased their overall revenue and decreased operating expenses. 

I expect blanket licensing to online platforms to become a standard across the music industry. While the film industry has already expanded to these platforms; the music industry seems to be just catching on and finally acknowledging that technology will only continue to grow and change. It seems apparent that for labels to survive these advances, they really must continue to streamline their business models to account for the advancement's in digital technology and leverage these new media platforms to reach their fans.

-J