Top iPad Music Apps (a/o February 8th):
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The music industry is struggling to monetize its assets across digital, mobile, physical, and even publishing channels. But consumers are paying increasingly large amounts for entertainment and content access, at home and on-the-go. In that light, Spotify is only free in one sense; to use Spotify, broadband access is required, and even 'on-the-house' cafe, university, and library WiFi is being paid for by somebody.
In the United States, the Census Bureau recently projected that the average American household will spend nearly $1,000 this year on entertainment-related subscriptions. The stuffed enchilada includes cable or satellite TV, gaming-related services like Xbox Live, and internet connectivity. The only problem is that 'downstream' applications and services like MySpace Music, LimeWire, and YouTube are then 'free,' and facing difficulty upgrading consumers into more premium relationships and transactions.
Suddenly, the battles between label groups and ISPs take on a new color. Viewed from the label perspective, ISPs are not only allowing piracy, they are also choking off consumer dollars. The access pot is massive, though the tollbooth is suddenly far upstream. On top of that, consumers are spending more time listening, discovering, and sharing music than ever before.
Just recently, Forrester Research analyst James McQuivey, PhD expanded upon this theme at the paidContent2010 Conference. "Whoever controls access commands the highest share of revenue," McQuivey said, while pointing to bread-winning positions for telcos and others.
Over time, the consumer relationship to media has been radically transformed. McQuivey estimated that monthly spending on content at his household is $228.54, of which nearly 70 percent is for access alone, not direct content acquisition. In 1975, McQuivey estimated an allocation of just $29.58, "all of it directly for content," including the occasional, direct purchase of an album.
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