Samsung has followed in the footsteps of Sony’s Entertainment Network as it attempts to diversify income from hardware sales by earning a cut of profits from digital content sales and subscription fee revenue.
Sony rolled out music and video digital content services earlier this year in conjunction with its existing Playstation Network for gamers. Its aim is to leverage the growing number of internet connected consumer electronics devices it has sold to households such as the Playstation 3, Bluray players and Smart TV’s.
Samsung’s new Music Hub, launched yesterday in Australia, aims to compete with the Music Unlimited Qriocity service Sony launched 6 months ago. However both are still tiddlers in a pond dominated by the big fish, Apple’s iTunes.
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Miramax CEO Mike Lang commented recently that “Apple is the strongest company in the music industry, and because there … is not enough competition, as an industry it can’t then influence packaging, merchandising … all the things that are vital”.
Little wonder then that CEO of ARIA Ben Rosen welcomed the launch of Samsung’s Music Hub so profusely.
Rosen made the bold claim that music was the first industry that was challenged by digital technologies. "But it’s also one of the industries that’s really leading the charge of how we embrace technology and digital consumption."
Miramax CEO Lang advised fellow content owners at MIPCOM that “piracy really is not the bigger issue for our company or for our library. It’s been lack of exploitation, just not getting it out there. Most consumers at some point in their life don’t want to pirate. The way to then react to that is to offer legitimate, great service for them to access it”.
The music industry has preferred to take the path of suing individuals and peer-to-peer music sharing websites rather than finding new business models.
It took the market dominance of Apple to force the music industry to release digital music for sale through iTunes in a way that was so easy and frictionless to buy that people flocked to the service in droves.
Despite the market shift, Samsung and Sony face an uphill battle succeeding in digital music content sales.
Music fans will be reluctant to pay $100-$150/year for streaming music when they can pirate music using Bittorrent or a free Android apps, use iTunes purchased music on a variety of hardware or listen to many free internet streaming services.
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Samsung can't stop the music
Samsung has followed in the footsteps of Sony’s Entertainment Network as it attempts to diversify income from hardware sales by earning a cut of profits from digital content sales and subscription fee revenue.
Sony rolled out music and video digital content services earlier this year in conjunction with its existing Playstation Network for gamers. Its aim is to leverage the growing number of internet connected consumer electronics devices it has sold to households such as the Playstation 3, Bluray players and Smart TV’s.
Samsung’s new Music Hub, launched yesterday in Australia, aims to compete with the Music Unlimited Qriocity service Sony launched 6 months ago. However both are still tiddlers in a pond dominated by the big fish, Apple’s iTunes.
Miramax CEO Mike Lang commented recently that “Apple is the strongest company in the music industry, and because there … is not enough competition, as an industry it can’t then influence packaging, merchandising … all the things that are vital”.
Little wonder then that CEO of ARIA Ben Rosen welcomed the launch of Samsung’s Music Hub so profusely.
Rosen made the bold claim that music was the first industry that was challenged by digital technologies. "But it’s also one of the industries that’s really leading the charge of how we embrace technology and digital consumption."
Miramax CEO Lang advised fellow content owners at MIPCOM that “piracy really is not the bigger issue for our company or for our library. It’s been lack of exploitation, just not getting it out there. Most consumers at some point in their life don’t want to pirate. The way to then react to that is to offer legitimate, great service for them to access it”.
The music industry has preferred to take the path of suing individuals and peer-to-peer music sharing websites rather than finding new business models.
It took the market dominance of Apple to force the music industry to release digital music for sale through iTunes in a way that was so easy and frictionless to buy that people flocked to the service in droves.
Despite the market shift, Samsung and Sony face an uphill battle succeeding in digital music content sales.
Music fans will be reluctant to pay $100-$150/year for streaming music when they can pirate music using Bittorrent or a free Android apps, use iTunes purchased music on a variety of hardware or listen to many free internet streaming services.