Comments on: We7 proving ad-supported music has a future? http://eu.techcrunch.com/2008/01/22/we7-proving-ad-supported-music-has-a-future/ Tracking European web and mobile start-ups Sun, 08 Nov 2009 08:21:42 +0100 hourly 1 By: BILL http://eu.techcrunch.com/2008/01/22/we7-proving-ad-supported-music-has-a-future/comment-page-1/#comment-110463 BILL Sat, 09 Feb 2008 15:03:41 +0000 http://uk.techcrunch.com/2008/01/22/we7-proving-ad-supported-music-has-a-future/#comment-110463 The latest attempt at new music distribution may be to give the music away free, but this is unsustainable from a cost/revenue perspective. There is not enough advertising demand available to subsidize the $30billion digital music market with ads; and if the inventory were created anyway, it would seriously deflate the display and keyword ad market. Digital music market is now at $30 billion and rising (including illegal downloads). While digital advertising is only at $20 billion and slowing. There's an excellent analysis at the Brooding Savage blog. http://www.BroodingSavage.com/journal/2008/2/7/ad-supported-music-1.html The latest attempt at new music distribution may be to give the music away free, but this is unsustainable from a cost/revenue perspective. There is not enough advertising demand available to subsidize the $30billion digital music market with ads; and if the inventory were created anyway, it would seriously deflate the display and keyword ad market.

Digital music market is now at $30 billion and rising (including illegal downloads). While digital advertising is only at $20 billion and slowing.

There’s an excellent analysis at the Brooding Savage blog.
http://www.BroodingSavage.com/journal/2008/2/7/ad-supported-music-1.html

]]> By: Robleh http://eu.techcrunch.com/2008/01/22/we7-proving-ad-supported-music-has-a-future/comment-page-1/#comment-99854 Robleh Tue, 22 Jan 2008 20:52:55 +0000 http://uk.techcrunch.com/2008/01/22/we7-proving-ad-supported-music-has-a-future/#comment-99854 I think ad-backed music services are better suited to streaming, especially if you could integrate ads with social network data to make them relevant to individual users. If Last.fm could get access to facebook's data to stream contextual ads in exchange for revenue sharing deal they would be on to a winner. People are used to hearing ads on the radio so it wouldn't be intrusive if done that way. I think ad-backed music services are better suited to streaming, especially if you could integrate ads with social network data to make them relevant to individual users.

If Last.fm could get access to facebook’s data to stream contextual ads in exchange for revenue sharing deal they would be on to a winner. People are used to hearing ads on the radio so it wouldn’t be intrusive if done that way.

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