It Was Inevitable, Really: Netflix Is Turning Into HBO

It Was Inevitable, Really: Netflix Is Turning Into HBOSense8 Murray Close/Netflix For a while there, Netflix was on a roll. Over the course of about four years, from House of Cards to Stranger Things , it produced one hot new show after another. The platform gave its series healthy budgets, their stewards complete creative control; renewal for multiple seasons was seemingly a fait accompli . Then, in the early summer of 2017, the honeymoon ended. Netflix announced it was canceling two programs, The Get Down and Sense8 . The cancellations weren’t about critical response or award nominations, they were about ROI—or the lack thereof. Speaking at a conference last weekend, Netflix chief content officer Ted Sarandos said that the network had to ask itself if enough people were watching the shows relative to the amount of money they cost. Considering that both The Get Down and Sense8 were reportedly very expensive , the answer wasn’t difficult to come by. “A big expensive show for a huge audience is great,” Sarandos said . “A big, expensive show for a tiny audience is hard even in our model to make that work very long.” For a company so opaque—Netflix has traditionally refused to give viewership numbers—Sarandos’ word choice is […]

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Live Concerts + Streaming = 73% of the US Music Industry

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Apple has 27 million Music subscribers, unveils HomePod

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L’industrie musicale ouest-africaine est en plein boom

There could be 147m music subscriptions by the end of 2017

Streaming Music Pricing: Inelastic Stretching


LE STREAMING, TREMPLIN DE LA CROISSANCE RETROUVEE DU MARCHE DE LA MUSIQUE EN 2016Le marché français renoue avec une croissance significative pour la première fois depuis 15 ans, d’après les premières estimations du Syndicat National de l’Edition Phonographique (SNEP). La forte progression des revenus du streaming porte à elle seule cette dynamique vertueuse grâce notamment à la croissance des revenus liés aux abonnements. C’est le résultat d’un pari réussi : celui de la spectaculaire démocratisation de cet usage chez les Français, qui ont écouté plus de 28 milliards de titres de musique sur les plateformes de streaming audio en 2016, un volume d’écoutes en progression de + 55% par rapport à 2015. « Le marché français retrouve des couleurs et se donne les moyens de construire son avenir. Cette forte croissance est la juste récompense d’une décennie de travail et d’investissement des producteurs, des artistes et de leurs partenaires de la filière musicale pour s’adapter à la nouvelle donne numérique » déclare Stéphane Le Tavernier, Président du SNEP. L’année 2016 signe aussi la confirmation de la vitalité de la production locale et du succès des artistes français, qui trustent 18 des 20 meilleures ventes ou équivalents-ventes de l’année 2016. Les résultats détaillés et l’analyse du marché seront communiqués à l’occasion de […]

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Blockchain could completely transform the music industry

Dish brings Alexa and multi-room music to Hopper DVRs

Warner Music reimagines a lucrative format for the streaming era …

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How Context Awareness Is The Next Frontier In The Music Industry

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L’offre de musique numérique

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Quick Take: Amazon Music Unlimited Comes To The UK

Amazon announced the anticipated launch of Amazon Music Unlimited in the UK today. For my full take on Amazon Music Unlimited see my previous post here. Make no mistake, Amazon are taking this launch seriously, with a coordinated PR campaign and press release quotes not only from Amazon’s head of streaming music Steve Boom but also from Jeff Bezos himself. So why the big deal? Music is a low revenue, low margin business for Amazon, just as it is for Google and Apple. But that’s not the point. Music always plays a special role for tech companies, sometimes because the CEO is passionate about music, but normally because it is the service off which other things can be hung. Amazon, like Apple, is starting the transition towards becoming a services company. While Amazon has made much more progress on video than Apple has, it has made much less progress than Netflix has. Music is the wide appeal proposition that can be used to get people onto the first rung of the services ladder. Just like the CD got people onto the first rung of Amazon’s ladder back in the 90’s. Amazon’s approach to streaming music has thee notable assets that stand it apart from the pack: Targets mainstream music fans: 9.99 AYCE streaming services have drawn most of their users from music aficionados, super fans who like to spend money every month on music and who have the inclination and expertise to lean forward and routinely discover new music. Innovations like Discover Weekly and $1 for 3 months promotions from Spotify have helped broaden appeal but these are tweaks to the model, not revisions. Amazon set its sights on the more mainstream user with Amazon Prime Music, with a smaller, curated catalogue that is free to Prime Users. Pricing […]

Why the music industry is poised for explosive growth

Why the music industry is poised for explosive growthGetty/Cindy Ord After a long, long metaphorical winter, the music industry is finally growing again in 2016 for the first time in over a decade, thanks to streaming services like Spotify and Apple Music. And it’s just the beginning, according to analysts at Macquarie, who predict that global recorded music revenues will double over the next 10 years. Double! In a note on Wednesday, the analysts wrote that they expect recorded music revenue to grow 5% in 2016, to ~$15 billion. By 2025, they predict that number will be $30 billion. That’s still down from the $40 billion it sat at in 1999, but it would be a monster comeback for an industry that’s been rocked for the last decade. According to Macquarie, the driver of this revenue growth will be the continued ascendance of streaming services, from Spotify, to Pandora, to Apple Music, to Amazon’s new service. “ Streaming will grow to 50% of the market by mid-2019 and to 80% in 2025, based on our forecasts,” the analysts wrote. It will envelop the industry and pull revenues up with it. As to the more immediate future, Macquarie thinks recorded music will grow 7% in 2017. And that’s a conservative estimate, according to Macquarie. “We see upside to this level if Spotify’s launch in Japan, the second-largest territory and the one with the highest percentage of sales from physical, is successful,” the analysts wrote. “Amazon Unlimited Music (including mid-tier price point with Echo) should also boost growth in the UK and Germany (also a large physical market). Pandora Plus may also support even higher growth in the US.” Here is a chart from Macquarie showing the predicted music industry growth: Macquarie

L’investissement publicitaire appelé à doubler dans la vidéo

Les Français, et en particulier les jeunes, délaissent de plus en plus le bon vieux poste de TV. Les Français consomment de plus en plus de contenus audiovisuels en dehors du petit écran, une tendance appelée à s’amplifier. Morte et enterrée, la télévision ? Pas encore, mais elle se laisse de plus en plus distancer par la vidéo – au sens large. Certes, 81 % des personnes regardant du contenu audiovisuel (1) allument le bon vieux poste de télévision, mais ils sont tout de même 48 % à lui préférer d’autres formes de vidéos (vidéos en ligne, replay, streaming, etc.), selon un sondage en ligne de Publicis Média réalisé en partenariat avec Scholè Marketing auprès de 2.028 personnes. Plus précisément, les Français consacrent chaque jour 164 minutes (70 % du temps sur l’audiovisuel ) à la télévision en direct, 32 minutes à la télé délinéarisée (replay) et 39 minutes à d’autres contenus (vidéo à la demande par abonnement, vidéos en ligne, etc.). L’an dernier, c’était respectivement 171 minutes, 32 minutes et 32 minutes. Les jeunes regardent plus de la vidéo que la TV en direct Chez les jeunes (15-24 ans), les choses ont déjà basculé : 76 % regardent de la vidéo dite « avancée » (vidéo en ligne, replay, SVoD, VoD, DVD, Blu-ray, streaming, téléchargement, et enregistrement), pendant plus de deux heures en moyenne, contre seulement 61 % pour la télévision en direct. « Ils sont plus nombreux devant YouTube que devant TF1 ou M6 », relève Philippe Nouchi, expert Médias chez Publicis Média. Et 65 % d’entre eux consomment des contenus vidéo, hors télévision, tous les jours. La tendance à délaisser le petit écran devrait continuer, notamment parce que les Français sont de plus en plus équipés en box ou en tablettes. « La qualité des contenus […]

Streaming is crushing downloads at Sony Music, claiming 42% of revenues

Streaming has now firmly established itself as Sony Music’s biggest money-making format – walking all over downloads, which are shrinking at a pace. In fact, streaming is now generating more than double the money for Sony that the major is receiving from iTunes and others. In the three months to end of September (Sony’s Q2), streaming made up 41.5% of Sony’s retail recorded music revenues (excluding licensing income), with download pegged back on just 18% . Physical sales stayed strong, claiming the remaining 40.5% . Streaming generated 31.49bn Yen ( $303m ) in the Q2 period, up 26.6% year-on-year. Download, on the other hand, generated just 13.69bn Yen ( $132m ) – falling by a painful 31.6% compared to the same quarter of 2015. That’s a difference between the two formats of more than $150m – or $50m per month. Streaming’s growth in Sony’s Q2 was up 6.63bn Yen ( $64m ) year-on-year – only just offsetting download’s decline of 6.32bn Yen ( $61m ). When licensing income (sync, performance, broadcast etc.) is factored in, streaming made up over 35% of Sony’s recorded music revenues in the quarter (Sony’s Q2) with download on a measly 15% . Sony’s total music income – including publishing, records and ‘visual, media and platform’ – was up 8% to 150.2bn Yen ( $1.49bn ) in its Q2, growing 19% at constant currency. However, these gains were largely thanks to sales of a mobile video game title called Fate/Grand Order (categorized as ‘visual media and platform’). Sony’s recorded music revenues actually fell slightly in the period, down 1% year-on-year to 89.76bn Yen ( $865m ) – badly hampered by the strength of the Yen against the US dollar. (It’s expected that recorded revenues rose at constant currency.) Elsewhere, Q2 music publishing revenues – which […]

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