Monday, February 23, 2009

Music Labels Specific IPhone Applcation

An article on Cnet.com, http://news.cnet.com/8301-17939_109-10169298-2.html, is reporting that recpord label Inetrscope Geffen A&M, part of Universal Music, is rolling out a free iPhone application, named Kyte, that will let users listen to band specific content, bands backed by the record label. The application lets users play artist music as well as special material such as behind the scenes videos. I think thias is an interetsing attempt by the rcord industry to directly compete head on with streaming radio, such as Pandora and Last.fm, in getting people to listen to music without having to buy at first. In fact, the program is going to be ad-driven, not subscription or charge for the application, but, the real key to monetization will be getting listeners to enjoy a song and then, though the application, directly buy the songs (or other songs) from the artist. In otherwords, the record companie are using the popularity of the iPhone and iTunes as a potential revenue stream that they can directly control. Thus, many other record lables may bring out similar applications. A real question could be whether or not the labels will work togther or on their own on similar application going forward. Questions such as is a label's brand name a be big enough reason to buy music or is it the music that matters more tha the band and thus label specific applications, such as several different iPhone applications for each label and may cause users to opt not listen to just an application devoted solely to one label, a brand's own music, versus a Pandora which would is music from an array of record labels, and not based on artists under a label but purely artists with music similar to a listener's tastes. Many people argue content is king-good quality, easo of use and lot's of content. Thus, anything less, such brand only focused content, when brand may not be key to sales, may be a hard sell. But then again, props to the industry to given something a try and for experiementing and it will, be inetersting to see how this all plays out.

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