Hot Topic - Music and Media
Music streaming is hot. The music streaming business is a little more difficult. The subscription model is in, ad-serving not so much, at least with investors. Artists and their publishers wave their hands - or lawyers - and rights fees are raised. The biggest of the music streamers have deep pockets and, maybe, time to play. Investors see supply and demand. It’s not like coal mining.
Radio broadcasters, who once warded off threats of extinction from evil television, are feeling considerable anxiety inflicted by the streaming services and, more importantly, the notoriety they have achieved. Music, popular and otherwise, has filled the radio airwaves, interspersed with ads among many, occasionally DJs, sometimes with jokes, sometimes weather reports. Video, MTV and the like, did not “kill the radio star.” Audio streaming services enabled by mobile platforms are, at least by appearance, grabbing radio’s default audience, music fans.
Big investors and venture capital firms are watched carefully for indicators of financial trend. These money pipeline innovators, some would call them manipulators, apply their skills quite narrowly: make more money with less risk. Tech companies - including media tech - are played like poker chips. Of course, the table always wins.
If there is any message from the rise of media by subscription it is that the business universe has no patience with “digital pennies.” People will pay, as always, for the cool thing. But the trick is not to invent it. That’s been done. Reaching the young and restless with smartphone in hand means giving them entry to something they can only buy. The business is clear.
Quotas legally requiring radio broadcasters to broadcast music locally produced or performed in a national language periodically rise to broad debate. The music industry generally loves the idea and radio broadcasters generally hate it. Supporters and critics often cite French and Canadian music content broadcasting laws as proving their respective points.
The fearful truth about the digital age is that advantage goes to those willing and able to exploit a hot spot. While some in digital media see every breath taking moment as new and brilliant, the longer view shows a more consistent and real world. The spirit of the times needs lots of spirit while times change slowly.
A great revival in media mergers and acquisitions seems ever so much closer. Financial markets are still fat with cash as are the big global media groups. Yet huge deals, big enough to rearrange the dinner table, remain just a shout away.
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