Only 3-4 Digital Music Services Will Survive Next 12 Months, Says Digital Exec
Let the culling begin. There is only “room for three or four” digital music services, and we’ll see a number of them close in the next twelve months," according to Deezer UK’s Managing Director Mark Foster. Since launching in the UK in September, Deezer claims 1.4 million premium subscribers, in large part thanks to a bundling deal with mobile provider Orange. So, what about his competition?
Twelve months seems a short time for so many companies to call it quits. But after factoring in the cost of all of the free streaming happening on Facebook and elsewhere, the price-tag for staying open looms larger. Then there are antsy rightsholders who may want bigger, not smaller payments when contracts come up for renewal.
“We’ll be one of (survivors), no question. Whether we’ll be bigger than Spotify, I don’t know," Foster told Music Week. "There’ll inevitably be a shake-out – as with any market where you get a lot of people coming in with great ideas – over the next twelve months, you’ll get four or five big players coming out of the pack. Some will fall away. That’s market dynamics”.
What do you think the next 12 months will bring? Who will survive?