Music for subscription and mobile

The musician is not already bought: it is paid for hearing, how in the payment for traditional vision, and the subscription is imposed like business model. The problem is how many listeners will pay and at what price.
The cost for user of a service of streaming like Spotify or Yes.fm is between six or seven euros, according to information recognized by sources of the sector. Services as Napster corroborates this number of about 75 euros per year of cost between copyright, I pay to the record companies, connectivity, promotion and management.
The business model is to attract users with free music and to turn them into payment subscribers, as admit several experts. The music as marketing to turn songs free into subscriptions of payment, income for services, of the platforms of access, merchandising, concerts, and even sales of CDs and legal discharges: 360th business.
The fans reduce the discharges when the music is accessible in any platform and from any place, from the computer, the mobile or other portable teams.
But not the sufficient thing to satisfy to the industry and to support the business.
In Spain the use of the P2P has fallen down of 45 % of the users in 2006 to 26,6 % in 2009, according to the last information of the EGM. In direct relation with the increase of the streaming of music (56,9 % of the Net users) or of television and movies (41,8 %).
Numbers that recur in other countries and in those that there must bear in mind also the increase of the direct discharges.
The debate is if the free access and from any device the business makes grow. Experts as Russ Crupnick (NPD Group) point out that the streaming makes lower 13 % the sale of digital music. Other persons in charge of the musical industry in Europe deny this canibalización and point out that there takes place the same effect as with the criterion P2P: it is listened to choose in streaming or in discharges and buys to him the music or goes away to the concerts of the favorite ones.
It is the defender of the consumer opposite to the saturation of the market of the plenty and the commercial strategies of the record companies, the big ones harmed by the crisis of the business.
But they all seem to coincide that the radio online or the services of recommendation that do not allow to choose to what music one listens are more profitable: for the industry because they cannibalize less digital sales or of CD and for the users because they discover new offer instead of consuming his favorite music and replacing his buys.
The business of the music advances with the streaming and the mobiles, in addition to the video in Internet in places as YouTube or Vevo. The streaming and the video in Internet substitute to a great extent the radio and the videos in television, which change also Internet like principal platform, especially between the youngest.
That's why the record companies and the agents of rights want to support the price of the digital rights and not to reduce them. Today for every hundred songs - in streaming or in video - it is paid in whole about euro and a half in rights. And in spite of the low price of every audition, very much minor that the old copy and even of the rights of private copy, if the price is too low is sustainable not neither for the artists, nor for the record companies, and for the maintenance of the new services of distribution.
The result for the time being is that the new services need to turn more than ten per cent of his users into payment subscribers. But also they need to limit the number of songs to that the users listen free not to lose profitability for the rights payment with little comeback.
The publicity is cheering up, especially in services as Spotify in Europe, but the video lacks more advertisers, one of the big problems of YouTube.
And the viralidad cercena, since it has happened in case of Ok Go. Many videos in Internet stop being available for incrusting them because the advertisers seem ready to invest in the principal platforms of exhibition, where they can control who, how and how many times see them, but not in other webs. The publicity controlled opposite to the possibilities of the viral distribution and his biggest power of distribution.
Many musicians complain about the little that they gain with the streaming and the radio online. The effect Lady Gaga for the share-out of the income that do the record companies. But others admit that his hearing increases and is the best promotion way.
The diagnosis is that the music ambience and accessible, in the cloud, in the computer and the mobiles, it is for the most intensive consumers, which are ready to pay or keep on buying music and being present at concerts. But the whole world is to the expectation what is the threshold of survival of these new forms of access and business. The hearing to keep on enjoying music without limits and new services, and the record companies and the musicians to compensate the income of the sale of copies of his works and of the audio-visual diffusion (radio and television), the heart of the business for the time being.