20
December
2007
Evaluating My 2007 Digital Music Predictions
Well, it's almost a year after I made my 2007 predictions for digital music. Let's see how I did:
- At least one major label will start offering their tracks for sale without DRM. TRUE. EMI started it but others are following.Â
- Digital revenues will represent at least 20% if not 25% of a major label. FALSE. It accounts for 15% of Warner Music's revenues same for Universal. I did a cursory search for the other two and couldn't find their figures but I can only expect theirs to be on par or lower.
- Last.fm will be bought by Google, Viacom or Clear Channel in that order for a figure in the low to mid hundreds of millions of dollars. TRUE. Well it wasn't any of the 3 I'd mentioned, but CBS turned some head when it threw $275 M down for Last.fm.
- Pandora will go to the suitor that lost out on Last.fm. FALSE. I don't know if Pandora had any serious M&A interest this year but I'd bet that any such interest would have been doused by the royalty rate issue that webcasters have been fighting all year.
- XM & Sirius will try to merge. Terrestrial radio will use their influence in Washington to nix this.  TRUE-ish...They've certainly tried to merge, and the broadcasters have certainly tried to scotch it, but it remains to be seen whether they'll succeed (I think the deal will happen).
- The Sony BMG merger case will be favorably resolved by the EU courts. EMI and Warner Music will try to merge again. HALF TRUE. Yes on SBMG. Not so much on EMI/WMG.
- Apple will release their much-awaited mobile phone device, which will have modest but not runaway success since only 1 carrier will support it and Apple's various fans will have to wait for their existing cell phone contracts to lapse. FALSE. I think it's safe to say that the iPhone is a hit. So much for my contrarian prediction!
- Instead, Apple's iTV product will be the surprise hit of the year. FALSE. Again, my contrarian prediction didn't pay off...iTV is pretty much a failure.
- Sonos will be bought by Philips, Bose or Microsoft. FALSEÂ
- eMusic will file for IPOÂ FALSE
So I scored 3.5 out of ten. Not bad for a baseball player but I guess I'd better keep the day job!
[Cross-posted from ragsgupta.com]
- Posted by rgupta posted at 2007-12-20 15:38
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