Music Streaming to Explode in 2014?
That’s what the Wall Street Journal says.
In some ways, the new crop will differ from Spotify AB and its existing competitors, most of which provide unlimited access to 20 million tracks for about $10 a month. They will also differ from custom radio services like Pandora Media Inc. and iHeartRadio, from Clear Channel Communication Inc., that let users create “stations” based on their own taste.
Next year’s models will feature more genre-focused services, which can bring down the subscription price because of the narrower catalog. A niche service could charge as little as $2.99 a month, while others might allow fans to subscribe for just a week at a time. Some may offer discounted access to music catalogs by not including new releases, said Frank Johnson, chief executive of MediaNet Digital Inc., a Seattle company that will help bring more than 50 new streaming services to market next year.
The aim is to bring a wider range of consumers into the world of music streaming, which remains far less popular than downloading music from online stores such as Apple Inc.’s iTunes or Amazon.com Inc.
Niche-based services? Interesting, but I still think we’re in for a wave of consolidation in this space sooner rather than later.