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Ad-supported Music Services - Making a Business Out of Free Music

Product Type: Market Research Report
Published by: Generator Research Limited
Published: August 2006
Product Code: R625-7679
Description
  • SpiralFrog and Qtrax
  • Business Models
  • Future Possibilities
  • Service Review
  • P2P and Hosted
  • Key Trends and Drivers
Several different music download services have been announced over the last few months where users do not pay by handing over hard cash, but by agreeing to view ads.

The idea is simple enough: money paid by advertisers to place ads is shared between the music service provider and the rights holders, hopefully in a way that allows the service provider to make a profit.

The key question is whether these new services represent the start of a sustainable trend or, alternatively, whether they might just fizzle out, perhaps having failed to gain critical mass.

Featuring contributions from executives at SpiralFrog and Qtrax as well as other professionals who are at the forefront of the emerging mobile advertising industry, this report summarises the state of the art in thinking about how advertising can be used to finance the provision of free music.

The report begins by explaining the very latest trends and product concepts in new media advertising where hundreds of millions of dollars are being redeployed from traditional media to new, digital channels.

Next, the envisaged operation of ad-supported music services is explained in detail by reviewing the user experience and underlying business models.

The report then concludes by explaining where ad-supported music services might go, providing examples of services that involve extending the idea to new digital platforms and devices.
Table of Contents

SERVICE OPERATION: USER EXPERIENCE

P2P SERVICE MODEL

Option 1: Song Found on Brand X Network

Option 2: Song Not Found on Brand X Network

HOSTED SERVICE MODEL

ECONOMICS

UNDERLYING CONCEPT

WIDER TREND: FREE MUSIC?

NUMBERS

Price for Serving Ad

Other Costs

Gross Margins

FUTURE EVOLUTION

BEYOND TODAY’S AD-SUPPORTED MUSIC MODEL

PERSONAL MEDIA DEVICES

WEB SERVICE MODEL

Multiple Devices

Real-time

FINAL THOUGHTS
Ordering and More Information
Price and Delivery Options


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