The Music In-App Economy
Digital Music is a small-margin business and so it is a numbers game.
Competing on a basic music service is not enough in today’s market. Music streaming isn’t just a soulless database of songs, it needs to be an immersive, social and entertaining experience.
Affiliate schemes and API improvements entice developers to seamlessly bring music into their apps, making the developer the promoter of the music service with sign-ups via the app, in the game…APIs are driving more users to services such as Deezer, Rdio, Spotify, but how is the money made and shared?
APIs are increasing the number of players in the value-chain, meaning there is less money for each link in the chain. This puts pressure on the end of the chain, inspiring mobile app developers to create new revenue streams.
What are the relationships between the players in the value-chain: labels, music service providers, mobile app developers, artists and music fans?
What are the killer apps besides the ones from the established tech companies? And what are the options for in-app payments?