Principles of Programming Music Radio Part 4

This week in Digital Media: Roku 2, inexpensive, easy-to-use. Will others follow?

On Monday (8/7), Roku released an updated version of its media player, drawing more attention from the tech world and media consumers alike. While the improvements to the device are minimal, as described here, the device’s release sparks more interest as a possible prototype for other companies, and a glimpse into what might be the future for digital media content.

Is this the beginning of the end for physical copies of digital media? In a previous post we discussed the possible meaning behind the re-pricing structure of Netflix streaming services. It was thought that the new pricing was an attempt to usher consumers away from using hard copies of media. After looking at the capabilities of this device, and similar ones like it, the case for owning a Blu-Ray or DVD player is quickly losing its value.

Consumers want their media delivered to them with the least amount of cost and effort. The platform with more content and distribution will always trump the other, regardless of its quality; e.g.- VHS vs. Laserdisc, and Blu-Ray vs. HD-DVD (in both cases, the later competitor lacked popularity due to its limited selection) Despite the fact that DVD does outnumber the number of digital rentals, this will not be for long.

By no means is the Roku player the only media device of this sort. But what it is doing is showing that consumers can get streaming movies for free (via Crackle) and access many other applications at only the cost of the device, and their network connection (which most people presumably have). Whether the consumer chooses to purchase services like Hulu Plus or Netflix, is up to them. But with many people going through severe cost cutting, streaming on demand movies and TV shows is a clear choice for budget conscious consumers.

With more buzz surrounding streaming devices, combined with a push to cut back on physical copies of media, expect to see devices like the Roku 2 popping up.

This week in Digital Media: Borders Closes, Netflix Surprises

Last week, Netflix announced it would increase the pricing of their DVD & Streaming package by 60%. This came as a shock to the millions of Netflix consumers, and prompted lots of animosity towards the company. What was previously $9.99 and bundled both streaming and hard copy DVD rentals, has now become two separate packages priced at $7.99 each. While this move makes good sense from a financial standpoint, it is simultaneously sending a message to consumers that hard copies of digital media content are becoming less desirable methods of distribution.

Netflix is not the only company to make moves like this. Apple’s iTunes has always been 100% digital and Amazon has been pushing the use of its “cloud” service and Kindle devices for quite some time.

While the Netflix price hike came as a shock to many, the complete closing of Borders is a move that has left many people wondering if physical copies of media will soon be a thing of the past.

Are we coming to the end of CD’s, DVD’s, and books? While nobody wants to come out and say it directly, it’s most definitely on everyone’s minds and several online marketplaces and tech companies are preparing the public accordingly.

Is it possible that our own media consumption is to blame for these changes? When digital copies of music, books, and movies started to become readily available, the public became accustomed to getting more for less. As a result, we have now reached a point where the rationale to owning a physical copy of media is quickly fading.

How long will it take for physical good to become unavailable? Chances are it will take years, but if we continue to this trend it may come sooner than you think.

This Week in Digital Media: Google+, a true competitor for Facebook?

If at first you don’t succeed, try, try again. This seems to be the motto for Google’s dev. team as they recently launched “Google+”, a new social media networking tool that is said to be the first real rival to Facebook. Some reviews are in, with many expressing both the positive and negative aspects, but it has yet to hit the major market and be judged by tens of millions of eager consumers. Google+ will be about networks, and emphasize who sees what on your profile; a privacy feature that has many people thinking this might be a more professional and viable solution. Where Facebook arguably got its popularity from pushing the envelope of privacy, Google+ is marketing itself to a crowd that is looking for specific people, and things to network about …and maybe share some photos as well.

What does this mean for businesses? There is no denying that a Facebook presence for business is critical for branding and advertising. With more than 750 Million reported users worldwide, Facebook allows companies, musicians, brands to be existent online. However, Google has announced that no “business” profiles are available at the moment. Speculators say this is due in part because of the initial testing period. But as usual, Google was ambiguous as to where their new social network tool will expand its market.

Regardless, getting users to ditch Facebook will be quite a task. But that’s not to say it can’t be done. Witness what happened with Myspace and the company’s recent news.

As far as gaining attention, Google has done a great job of creating a “buzz”, and It will be intriguing to see what Google does to promote its new product. Whether or not they open the service to companies and artists is up to them. But it appears as if that would be the next step to becoming a real competitor.

This Week in Digital Media: Myspace sold again? Where do we go from here?

Myspace, the social networking website that once rivaled Facebook in popularity, has been sold to Specific Media for $35 Million dollars. This deal comes merely Six years after the company was initially purchased by NewsCorp for roughly $580 million dollars.

Originally meant to be a networking site for aspiring musicians, Myspace grew to incorporate anyone and everyone who wanted to re-connect with friends, and plant themselves in the thick of the social media atmosphere. However, somewhere in between its undeniable dominance, and the current “profile wasteland”, Myspace lost its ability to grow and retain users.

All of these signs would normally point to the end of an era. But, don’t be so quick to count out the “place for friends”. The website currently ranks #85 in the Alexa Rankings, and still has a niche group in the music and entertainment industry. It also doesn’t hurt that Justin Timberlake will now be responsible for some of the company’s business development and creative projects. His presence alone could give the company some much needed validation.

Regardless of what happens with Myspace in the next few years, the company has made its impact on the music industry, and changed the way entertainers are able to market themselves. What do you think is the biggest impact of Myspace, and where do you think it will go from here?

This Week in Digital Media: Cracking down on Piracy

Will stricter enforcement against piracy lead to increased online radio listenership?

In a recent report by CNET, several major internet service providers have been in talks with the recording industry to help crack down on piracy. Although in the early stages, this looks as if the record labels may have finally convinced ISP’s to aid them in reducing the amount of illegal content online.

For over a decade, record labels and consumers have been in a constant battle over illegal file sharing. However, the method of protecting artists and their music has never been clearly and strictly enforced. Certain high profile suits have been filed between record labels and individuals, but for the casual user, the threat of the recording industry knocking on your door seemed like nothing more than a scare tactic.

Not anymore. With the ISP’s monitoring illegal downloads, the repercussions are instant, and users are easily monitored. Pirates of illegal material will be cited, and potentially banned from using the service altogether. As the internet becomes more involved in our daily lives, the thought of not having it might just be enough to prevent people from abusing it.

Does this mean that we will see an increase in online radio listenership? Probably. Another post from a few weeks back (see here) discussed the increase of internet radio among consumers due to mobile applications, and predicted major changes within the next few years. This will undoubtedly be a factor as well.

To read the full article click here.

This Week in Digital Media: College Radio Stations, Alternative Listening

On Saturday, The New York Times posted an opinion article that discussed the hardships of college radio stations and paid homage to many prominent universities whose radio stations have suffered from underfunding and under appreciation. The closure of these stations has caused quite a stir among avid music listeners across the country.

For a long time, college radio stations had been a place where new music could be discovered organically, and shared without the underlying desire to drive a profit. However, budget cuts, furloughs and other hardships have hindered these programs at thousands of colleges and universities and forced many to end their broadcasting tradition. As more stations close and more listeners are left stranded, where will consumers find their source for new music?

Many listeners have explored online radio options, but remain wary of the corporate agenda behind the broadcasting that they hear. Computer algorithms and beat synchronization can predict what you like from a number standpoint, but there is no telling who or what is profiting from your listening hours. Additionally, many music enthusiasts desire the aspect of “human touch”, and appreciate that someone like themselves put time into creating a set list and researching the artists and music they play.

The thrill of finding a new artist or hearing new music will never die among avid music lovers. There is an element of surprise obtained when a new song catches your attention; and college radio stations have long been the source of alternative and eclectic music from all genres. There is no telling where radio will go, as it is affected by so many other factors. However, we can only hope that “college” style radio will continue to exist.

To read the entire article click here.

This Week in Digital Media

In a recent study of online media listenership, eMarketing determined that 37.5% of US internet users ages 12 and older will listen to online content at a weekly basis this year.  These numbers rose to 44.7% when calculated on a monthly basis.  While much of this is attributed to the growing number of consumers with smartphones and data plans, there is evidence that music listeners are turning to online broadcasts to satisfy their listening needs.  Showing steady growth in listenership, eMarketing estimates that by 2015 as many as 68% of internet users will be tuned in to an online broadcast of some kind.  

With the rise of listenership, the amount of advertising has also increased making online radio advertising nearly a 1 billion dollar industry annually.  Though nowhere near the size of terrestrial radio advertising, online radio ad space will continue to increase in value as more listeners tune in.  

We have seen in the past few years the effect the internet has had on print media.  The ability for consumers to attain information faster, cheaper, and even automatically has diminished the need for a hard copy paper in US households.  As a result, newspapers have cut their staff significantly, reduced news coverage overall, and continuously struggle to retain annual subscriptions.  In short, the internet has caused one of the most profitable businesses to crumble right in front of our eyes.  To combat the recent struggles, publications like the Wall Street Journal and The New York Times have adopted an online payment system to obtain dividends from print material online.  However, the general consumer has grown accustomed to getting their news for free, and in some cases, these pay-for-read schemes have backfired. 

This begs the question: With many bold predictions regarding digital media, combined with the recent changes to print media, what are the possible outcomes to the future of radio? 

To read the full eMarketing article, click here.