The Great Re-bundling: The Wireless Future of Music and Video

Bundled media services are becoming table stakes in the wireless business. With plain old wireless service (POWS?) at or close to the saturation point in the U.S., wireless operators are increasingly fighting over slices of a fixed pie, and feel a growing need to differentiate from their competitors in pursuit of market share.

With the costly build-out of 5G networks looming, operators also need to increase ARPU by adding services.

Thus, it was no big surprise this week when Softbank-owned Sprint snapped up a 33 percent stake in Jay-Z’s Tidal music streaming service. Sprint already had a partnership with Tidal, but as MIDiA Research analyst Mark Mulligan noted in a blog post,  the bundling game has changed for wireless operators, and meaningful differentiation increasingly means having your own skin in it.

“The original thinking behind telco bundles was differentiation, but when every telco has got a music bundle there’s no differentiation anymore,” he wrote. “Additionally, if you are a top tier telco and you haven’t got Apple or Spotify, then partnering with one of the rest risks brand damage by appearing to be stuck with an also-ran. By making a high profile investment in Tidal, Sprint has thus transformed its forthcoming bundle from this scenario into something it can build real differentiation around.” Read More »

A Measure of Success: Frank Ocean, Netflix and the Value of Data

Frank Ocean’s surprise release “Blonde” debuted at No. 1 this week on the Billboard Top 200 album chart, racking up sales of 275,000 units, despite its not being released as an album in any physical format.

frank-ocean-blonde-x750So what were those 275,000 units? Some 232,000 of them were paid digital album downloads, according to Nielsen Music. The other 43,000 consisted of “equivalent album units.”

Say what?

An “equivalent album unit” (shouldn’t that be “album-equivalent unit?) is a metric devised by Billboard in 2014 to accounting for streaming activity and individual track downloads for charting purposes. Ten individual track downloads from an album as measured by Nielsen, or 1,500 on-demand streams of individual album tracks as reported to Billboard by the major streaming services, are counted as an equivalent album unit. In the case of Blonde, individual track downloads were not available at the time of the albums initial release, but they accrued 65 million streams. Dividing that 65 million by 1,500 yields 43,000 equivalent units. QED. Read More »

Apple Covers Its Musical Bases

There are two ways you could look at Apple’s emerging music strategy. It’s either extremely ambitious, or Apple isn’t sure what to do in music so it’s trying everything.

The two need not be mutually exclusive. In fact, no one in the streaming music business seems terribly confident about their own business model right now, even as new players continue to pile into the market.

Apple is widely expected to announce a subscription music streaming service next week at its World Wide Developers Conference, offering unlimited, on-demand iTunes_adaccess to music from the major and leading independent record labels for $10 month. That will pit it Apple directly against Spotify, currently the leading subscription streaming service, with 15 million paying users and about 45 million users of its ad-supported free tier.

Unlike Spotify, Apple’s on-demand service will not include a free tier. But Apple isn’t writing off free music altogether. Far from it. According to the Wall Street Journal, is preparing to relaunch its existing free, ad-supported web radio service, iTunes Radio, adding programmed channels, some of which apparently will be hosted by celebrity DJs such as the rapper Drake, Pharrell Williams and Beats co-founder Dr. Dre, who is now working for Apple. Apple also recently hired away a group of producers and DJs from BBC Radio 1 to help with the programming. Read More »