Archive for January, 2013

2013: The End of Access vs Ownership?

Posted in B2B Services, B2C services, Mobile on January 28th, 2013 by Kelaine Blades – 4 Comments

The latest BPI figures released earlier this month show, yet again, an upswing in digital music consumption in the UK.

Digital album sales increased by 14.8% to 30.5 million, with 16 albums selling more than 100,000 digital copies in 2012 – but it still wasn’t enough to make up the shortfall in physical sales. Overall album sales dropped by more than 10% in 2012 as the CD market shrank by a fifth.

Streaming has also seen strong growth, albeit from a smaller base, with more than 3.7 billion track streams in 2012. As varying forms of digital music access continue to grow, it’s clear any remaining resistance to digital is diminishing.

It’s also clear that one level of ‘access’ does not suffice for all music fans, and it’s important to keep in mind not everyone will want only downloads or only streaming. While some services, such as Spotify, have refocused on more limited options of access, the right model is the one that offers access to your music, anywhere in the world, on any device.

This ‘multi-access’ is the music industry’s best option in making up the physical decline.

Amazon MP3 is a little behind the times…about two years

Posted in Apps, B2C services, Mobile on January 22nd, 2013 by Kelaine Blades – Be the first to comment

It was interesting to read the latest news from Amazon regarding the launch of a HTML5 version of the MP3 music store, specifically aimed at those using Apple mobile devices. Interesting for two reasons; Amazon seems about two years off the pace, and it’s a departure from the lock-in Kindle/ebook strategy.

Apple has always been a strict master of the App Store, and upset a number of content holders back in February 2011 when it introduced a 30% ‘tax ’ on all digital content purchased through apps on an Apple device. Many looked at alternatives to avoid the 30% fee, as it made the slim margins on digital content impossible for some publishers to work with. Almost two years later, it seems Amazon has caught up with its HTML5 mobile site.

At 7digital, we launched a similar mobile site (m.7digital.com) in February 2011. Unlike Amazon, our HTML5 store was not solely aimed at Apple users. Of course music fans can easily browse and purchase music through their iPad or iPhone on the site, but back then it was an early hint of where we saw the market going.

Even two years ago we were sure music was heading to mobile. We were right.

Over two thirds of 7digital purchases now happen through a mobile device, and this number is only going to get bigger. Since we introduced the mobile store we’ve built more 7digital apps, including an iOS app, so everyone has easy access to high quality digital music on any device – whether we have a dedicated app or not.

Music is a must – 7digital at CES 2013

Posted in B2B Services, B2C services, Brands, CES, Consumer Electronics, Events on January 16th, 2013 by Kelaine Blades – 1 Comment

Nearly 2 million square feet of exhibition space showcasing over 3,000 global multinationals’ array of gadgets can make any company feel like a small fish swimming in a sea of giants. However, the 7digital list of partners showcasing new devices with music powered by 7digital’s API was truly impressive at the 2013 Consumer Electronics Show.  7digital is proud to count Microsoft, Pure, HP, Toshiba, HTC, Samsung, Sonos, Pioneer, BlackBerry and QNX among our key consumer electronics partners – all of whom continue to roll out new and improved devices.

We work around the clock to build this network and keep our set of music rights and technology current with the latest and greatest trends and consumer needs. At CES the reality and grandeur of our dance card is inspiring to witness as the throngs of consumers pass through the massive show floor to try out the tablets, phones, connected TVs, wireless systems and PCs with our API in the background. This year we had six people at CES, running around from one meeting to the next in suites and the convention hall.   Here are their observations of key trends.

1. The Importance of Music
No matter how great the chips, design, or touch screen perform, if a device isn’t entertaining and useful, it’s not going to succeed.  While each CE company may have a different strategy, it is apparent that music is a core requirement in all connected devices.  There is something for everyone with music, and it makes each device shine.

2. Consumers Want Ease of Use and Interoperability
The consumer is king and they want to try and buy new devices at will.  The proposition that core functionality is gated off from one operating system to another doesn’t make sense and will lead to disappointment after the all-important box is opened.  We believe the same thing is true for a user’s music collection, so we aim to give consumers access to music across all platforms and all connected devices.

3. Vertical vs Horizontal
Our friends in Cupertino set the bar for hardware, software and content integration but they’ve done it in a vertical stack.  If you roam outside of that suite of devices, the experience breaks down.  Very few companies can or WANT to take this approach, and a core trend we saw in every corner of the CES show floor is partnerships and API integrations that allow for fertile collaborations that enable great experiences across devices and platforms in a horizontal approach.   The pace of change in the market is overwhelming, and we hear new music business models pitched to us on a daily basis – the horizontal strategy also allows for partners to move more independently amidst constant change.

Vickie Nauman, President of 7digital North America has been going to CES for years and on behalf of 7digital for the past 3 years. She comments, “it is amazing each year to see all the companies showing their take on a new unique consumer electronics product. It can range from anything such as robotic cats to fridges that can talk, however, it is growing much more apparent that having music run through your product changes the dimension of it completely.  Music makes your device instantly relevant to your consumer base. ”

4.  2013 Looks to Be a Big Year
Another key observation from the 7digital crew is that it’s not only the CE companies that are coming out of their shell with a music strategy but also digital media publications and destinations, brands, big box retailers, specialty retailers, radio streaming companies and even chip manufacturers.  The common thread is music helps everyone connect to and grow their user base.

Vickie comments, “many of these companies have been on the fence for years, contemplating the right way to enter into music while watching the industry and consumption patterns change at an unparalleled fast pace. They’ve pondered business models and debated whether to partner, build or buy.  It’s clear they want to move forward with a smart, strategic company – and this means solutions like 7digital’s API and partner approach are increasingly relevant – the digital music switch is being flipped on all over CES and it is an exciting time.”

5. The Connected Car is In the Fast Lane
People love their cars, want music at the (safe) touch of a button, and we had a lot of fun wandering through the auto show floor.  We also were invited to present our custom app made for the Pioneer in car sound system and spent several days positioned at the Pioneer booth to demo the 7digital/Pioneer application. 7digital’s VP of Global Marketing Kelaine Blades spent time at the Pioneer booth and comments, “it was amazing to talk to such a steady flow of users and repeatedly try to explain this intricate layer of access and deep wiring of technology and content in a way that makes it sound simple. When two companies like Pioneer and 7digital work together, they can give the user a good experience in a natural listening environment, and that means music in the car.”

Another example we were delighted by was a walk through the QNX booth, where the 7digital integration for connected cars was given prime placement.

In Conclusion
It was an amazing year at CES for us!  Having a team on deck running around to meetings was great and we look forward to next year where we hope to be able to show even more interoperability, partnerships and smart products that give users access to music in ways they want and need.

Kelaine Blades, 7digital's VP Global Marketing, demoing the 7digital app at the Pioneer booth

7digital at the Pioneer booth

Our partner Pure displays their new Jongo multi-room device. 7digital’s API powers the music running through these nicely designed and colourful speakers.

QNX in-car 7digital integration

Ecosystems and partnerships galore @ CES

The Gibson tent - guitar nirvana!

Ones to watch in 2013

Posted in B2C services, Stores on January 2nd, 2013 by Kelaine Blades – 1 Comment

One of the few things guaranteed to pull us through the post-Christmas slump is checking out the up-and-coming musical talent set to make a splash in the next 12 months, and looking forward to big new albums from established acts.

Read more for our top tips for 2013 – broken down into bands, solo artists and producers – plus a selection of the best pre-orders at £5.

Our tip for the top:  AlunaGeorge

If we were in the betting business, we’d advise you to stick a pony this pair of Londoners being the breakthrough act of 2013. Let’s survey the evidence: they were nominated for the Brits’ ‘Critics’ Choice’ award, they’ve been long-listed for the BBC’s Sound of 2013 prize and they specialise in the kind of wonky, R&B-influenced, electro-pop that’s white-hot right now. If you’ve not had the pleasure yet, check out ‘Your Drums, Your Love’, ‘You Know You Like It’ or ‘Just A Touch’, and then join us in impatiently awaiting their full-length debut.

You can preview and download music by AlunaGeorge here.