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Could Streaming Music Go The Way Of The Betamax?
Forbes ^ | 6/11/14 | Christopher Versace

Posted on 06/12/2014 6:53:36 AM PDT by SoFloFreeper

Hollywood and the recording industry, often called the content industry, have a long and ignoble history of opposition to new technology. That list now includes streaming services. The record industry is pushing every button to try to kill off this growing marketplace.

Look at Pandora, which had 77 million active listeners at the end of May. During the month those millions and millions of people listened to 1.73 billion hours of Pandora programming, a 28% increase year over year. Wall Street expects Pandora to grow its revenue 38% this year to 900 million – that’s the good news. The bad news is the company is only expected to deliver $0.17 per share in earnings – $34.9 million in next income or a net margin of only 3.8%...

Why the big disparity?

The greatest differentiator is the content acquisition cost that Pandora has to pay in the form of royalties for sound recordings. But here’s the real problem, content acquisition costs increase with each additional listener hour so the more you listen, the more they have to pay in royalties.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: digitizing; music; recording; technology
I enjoy a paid streaming service. Listen to Pandora occasionally, but not much.
1 posted on 06/12/2014 6:53:36 AM PDT by SoFloFreeper
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To: SoFloFreeper
Ack!

I'm listening to SKY.FM right now.

2 posted on 06/12/2014 6:59:40 AM PDT by grobdriver (Where is Wilson Blair when you need him?)
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To: SoFloFreeper

I guess I’m now an old fart. I like my books and my music in hand. Especially music — I would need to have a cell phone AND a good signal AND continuing income to pay for it AND a reliable company at the other end, forever.


3 posted on 06/12/2014 7:03:24 AM PDT by jiggyboy
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To: SoFloFreeper

Generally speaking, what is streaming bears no resemblance to music but more to the sound of two cats fighting in a large metal trash can.


4 posted on 06/12/2014 7:07:05 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: Don Corleone
Generally speaking, what is streaming bears no resemblance to music but more to the sound of two cats fighting in a large metal trash can.

Two cats fighting in a large metal trash can would be an improvement over the dreck that passes for pop music today.

5 posted on 06/12/2014 7:10:44 AM PDT by dfwgator
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To: SoFloFreeper

If the recording industry strangles itself with its avarice, I won’t miss it even a little bit.


6 posted on 06/12/2014 7:14:05 AM PDT by tomkat
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To: Don Corleone
Generally speaking, what is streaming bears no resemblence to music...

I'll take my old fashioned Rock 'n Roll vinyl any day...

7 posted on 06/12/2014 7:16:30 AM PDT by grania
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To: SoFloFreeper
Judge Denise Cote detailed what she called “troubling coordination” between ASCAP and two of the world’s biggest publishing companies, Sony and Universal Media Publishing Group, against Pandora that “implicates a core antitrust concern.” The decision set a rate of 1.85% of Pandora’s revenues for each of the five years of the license term (2011-2015). This court set rate is in addition to the nearly 60% of revenue Pandora is required to pay to performing artists. Yes, the court set rates for publishers expire next year and already ASCAP is starting to make its case for an even higher royalty rate.

Wow. I didn't realize Pandora paid out 60% of their revenue to performers....that is a lot of money.

8 posted on 06/12/2014 7:18:47 AM PDT by SoFloFreeper
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To: Don Corleone

The beauty of streaming services is the ability to select the kind of music you want to listen to. I find it indispensable for long drives.


9 posted on 06/12/2014 7:21:14 AM PDT by messierhunter
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To: messierhunter

i stream music a lot at home; created playlists and different channels depending on what i am doing (graphics work, wargaming, model building...) and my mood.


10 posted on 06/12/2014 7:24:40 AM PDT by bravo whiskey (We should not fear our government. Our government should fear us.)
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To: jiggyboy
I'm with you. You can go to You-Tube and download many of your old favorites on your hard drive, burn it into a CD, move it to a flash drive, etc. and take it with you wherever you go. You can also buy a ton of MP3 downloads off Amazon for literally a penny or three per song and do the same thing with them.

There is no need to be a continuing revenue stream to the entertainment industry subject to the three conditions you mention.

I do not own one of those damn internet accessible cell phones. I own a TracFone ($80 per YEAR versus that much per month) which I generally keep in the car in event of emergency unless I'm traveling on business. I'm not going to watch a ballgame or answer e-mail on an itty-bitty 1.5" screen. I have a $150 Kindle (one-time expense) where I can do it on a nice 7" screen when I am away from home as long as I think it is important enough to pull into a nearby McDonalds, Starbucks or thousands of other places offering free wi-fi.

11 posted on 06/12/2014 7:28:21 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Don Corleone

You mean the streaming itself or the content of the music? I love listening to my oldies....I just enjoy the ease.

Have a friend who plays and records music....not a hitmaker but a wannabe....he really thinks he is getting ripped off by Pandora, etc. As if HE could get distribution from major record companies....ridiculous.


12 posted on 06/12/2014 7:28:26 AM PDT by SoFloFreeper
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To: Vigilanteman

“a penny or three per song”? Hey that would be great, is that just promo stuff from new artists though or can I get old stuff like 1970’s top-40.


13 posted on 06/12/2014 7:36:41 AM PDT by jiggyboy
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To: SoFloFreeper

The industry is foolish if they are trying kill off Pandora and the other streaming sites. They are really the recording industry’s last hope for reliable revenue. If the streaming sites go bye-bye, then consumers will go right back to what they were doing before the streaming sites were around, and that is getting their songs from peer-to-peer networks while the industry and artists get nothing.


14 posted on 06/12/2014 7:53:30 AM PDT by Boogieman
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To: jiggyboy

Go to Amazon and browse. Most of it is classical played by orchestras in the old Soviet block, but there is some contemporary music as well which may run you a dime or two per song. The longer the artist has been dead (or out of fashion), the lower the royalties and, thus, the lower the price.


15 posted on 06/12/2014 8:23:25 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: SoFloFreeper

I have Milk music and Pandora apps on my Samsung Galaxy S4 cellphone. I also have iHeartRadio and Tunein apps to get live radio around the country. Both music and talk.

Big selection to choose from. It is great to hear the classic music of yesterday when people could play instruments and sing and write songs that are memorable.
The local radio stations here have awful music. New country and whatever you call pop music today. The oldies station plays the worst of 80’s music now.

With Milk music and Pandora they give you 6 songs in a rotation on a particular genre like Country that if you do not listen to them all the way thru (I tend to click thru songs and sample them) you see a message saying due to license agreement you cannot get another song.

Switching to another genre like Merle Haggard or Classic country will give you more songs.

Anyone know if paying to get rid of the ads would also allow me to hear more songs then 6?


16 posted on 06/12/2014 10:05:12 AM PDT by minnesota_bound
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To: SoFloFreeper

Amazon just added streaming service to their Prime content. Don’t know when it goes live, but it’s intended to add value for the $20 price increase.


17 posted on 06/12/2014 3:10:43 PM PDT by catbertz
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