We7 Response to News about Google Music
By now, I'm sure you've read the leaked news covered extensively today by TechCrunch regarding Google's forthcoming music service. You may have even about the press event for the official announcement, or screenshots of how the service might work, so I was intrigued by the email I received from We7 earlier today with an official response from their CEO, Steve Purdham below... what are your thoughts about their response?
“Online music access seems to be the media darling of the moment, and columns abound with rumors like today’s story about a Google music service. While the concept is much discussed, most people are still avoiding the big question and that is can it be made to add up. MySpace Music, Imeem and Spotify are all facing the simple economic reality that scale is not the main issue, economic sustainability is.
YouTube, for example, is still yet to turn a profit since its acquisition in 2006. However, the site continues to rapidly expand, announcing recently that it was servicing 1 billion views per day. This ability to grow the video platform on such a scale without concern, for the time being at least, without developing a sustainable revenue model, shifts focus away from the innovation needed to make the internet a strong business environment for media.
Google Music (should it be real) will be great for the consumer I am sure, but the biggest thing the music industry needs is the demonstration that the economics can be made to work. Focus has to be on payment to the artists, transparency of the model and sustainability. Once this happens then scale and opportunity can be allowed to fly in a really positive way.
We7, with good support from the labels, has built an outstanding music service and have achieved the #1 most accessed UK music site with 2.5m monthly users and our focus is on making ad funded model work.”
“Online music access seems to be the media darling of the moment, and columns abound with rumors like today’s story about a Google music service. While the concept is much discussed, most people are still avoiding the big question and that is can it be made to add up. MySpace Music, Imeem and Spotify are all facing the simple economic reality that scale is not the main issue, economic sustainability is.
YouTube, for example, is still yet to turn a profit since its acquisition in 2006. However, the site continues to rapidly expand, announcing recently that it was servicing 1 billion views per day. This ability to grow the video platform on such a scale without concern, for the time being at least, without developing a sustainable revenue model, shifts focus away from the innovation needed to make the internet a strong business environment for media.
Google Music (should it be real) will be great for the consumer I am sure, but the biggest thing the music industry needs is the demonstration that the economics can be made to work. Focus has to be on payment to the artists, transparency of the model and sustainability. Once this happens then scale and opportunity can be allowed to fly in a really positive way.
We7, with good support from the labels, has built an outstanding music service and have achieved the #1 most accessed UK music site with 2.5m monthly users and our focus is on making ad funded model work.”
