September 15, 2008

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People download twice as many apps via iTunes than songs, says Techcrunch - Apps more popular than Music? Techcrunch says that people have downloaded twice as many applications / apps for the iPhone using iTunes than they have purchased songs. That trend is even more amazing given how comparatively few people have iPhones, at this time, and how long the iTunes music store has been operating. And yes, the apps are not all free, either - in fact, all the really good ones cost between $2 and $10, so this is not comparing apples and oranges (i.e. free and paid). My thoughts: people believe that those apps have real value because they work so well within that fancy walled garden that is the iPhone ecosystem (and they really do - as I said before, I just love my instapaper offline reading app as it turns my iphone into the best electronic reader I have tried so far). If you want to be in this garden this is great stuff - the apps are a solid and easy fit with people's needs and therefore people buy them. And they are cheap, instant-satisfaction is guaranteed and they are very easy to get (via mobile and the computer); many apps have free versions to try before you buy the paid edition (that's called up-selling... for those in the music industry ;). But what people are really buying is good packaging, convenience, service, trust (all that more ephemeral stuff that Kevin Kelly calls New Generatives); and yes, this only works because Apple is running a closed system here - i.e. there is no other way to install the apps than thru iTunes (for now, I guess) which Apple controls from A to Z. I guess that if I am ready to enter that walled garden, if it works really well, if it's priced very aggressively, if it's fun to do, if it's...
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Community + Ads = Free Music. Can Myspace Music do it? Adage has good column commenting on the upcoming Myspace music launch, here. The high-lights: "MySpace is positioning it as a way for brands to tap into existing marketing strategies of aligning themselves with music -- but on the massive scale that is MySpace's 35 million music fans. Don't expect traditional banner ads..." Let's take note of these 2 Keywords: a) aligning with music b) no traditional ads. Having brands pay to align themselves with music and artists - makes perfect sense in my book (and in Kevin Kelly's New Generatives, as well, I would think) "It's hard to know exactly how much advertising will prop up the beleaguered music industry... MySpace CEO Chris DeWolfe said now is the right time, a year in which advertisers will spend $25 billion on domestic online advertising, according to eMarketer, and that MySpace has enough traffic and infrastructure to make it successful..." And here is the real nugget, imho: "Ed Gold, advertising director at State Farm, sees a role for advertisers to play in underwriting music. "One would say yes, advertising can work in the same way advertising helps support TV," he said. "The broadcast model has always been to watch ads and get free programming. Maybe that's what's going to happen here in the music space." What MySpace is doing, he said, is not all that different from radio...." Here we are, and you've heard it before (from me;): license digital music like radio and this problem can be solved. Update: CNN coverage here

Gerd Leonhard

Keynote Speaker, Think-Tank Leader, Futurist, Author & Strategist, Idea Curator, some say Iconoclast | Heretic, CEO TheFuturesAgency, Visiting Prof FDC Brazil, Green Futurist

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