Category : Music

To Vote or Not to Vote…For Facebook, that is the Question.

Within the last week, Facebook has made history again, asking users to vote for the third time in the company’s eight-year existence; but there’s a twist. Facebook users are voting on their right to vote for proposed changes to the social service. Yes, you read correctly, you’re voting for voting rights on Facebook, and if you don’t watch it, you may just lose that privilege.

These proposed changes come in light of Facebook’s review of its governing documents including the Data Use Policy and the Statement of Rights and Responsibilities. According to Elliot Schrage, Facebook’s VP of Communications, Public Policy and Marketing, the social media site seeks to reorganize their governance process, given their recent growth amongst users and public traders. In a nutshell, Facebook has gotten so big that their current voting system is inadequate and they’d like to get rid of it. The proposal states that the site would replace the system with one that emphasizes the “quality” of a vote rather than the “quantity” of votes.

The problem lies in the previous sentence: Facebook would like to do away with the present voting process, but does not seem to have a
definitive alternative.  I guess deciding upon this alternative would require another vote; but, what system do we have in the meantime? Are we to leave our Facebook policies to be decided upon by this now “big-wig”, publically traded company?

At first glimpse of this story, I wondered, “What’s all the fuss about? At least you’re getting a chance to vote for your vote.” But, if  many people don’t turn out –as history has shown-then you and I are left in a lurch where our voting rights may be null and void. This is just my take on the matter, so don’t take it from me; just consider it food for thought…

 

 

 

Spotify Leads the Way in Digital Music, Increasing Revenues and Expanding Market

Leading the pack in digital music, Spotify has been making strides in the business world lately. Posting increased revenues for the first half of 2012, returns for the online music streaming service are expected to more than double as we ring in the New Year. With a money smart business model, and a customer-centric music service, Spotify is certainly providing a sense of hope to the much troubled music industry.

Established in 2006, the self-proclaimed, on-demand music site stepped onto the scene providing customers with the ability to generate custom playlists for their listening pleasure. Hailing from Sweden, the subscription-based service also enables users to share their music interests with friends via social media. Spotify has virtually captured every music lover, enticing everyone from hardcore punk rockers to easy-going reggae lovers.

Spotify’s broad appeal to the masses lends a hand to the company’s financial success and subsequent growth within the music industry. Since the Internet boom in the early 2000’s, the music industry has experienced a difficult time in regulating (and profiting from) online sharing of music. The likes of Apple’s iTunes software has certainly reinvented the process of gaining profits for music labels and artists alike; however, Spotify has created a lucrative deal structure with music labels, requiring them to pay either a $200 million annual fee or 75% of Spotify’s revenues in exchange for their artists’ presence on the site. This is not to mention their subscriber based business model where users have three options to either stream music for free with ads, pay $5/month for ad free streaming, or $10/month for streaming without ads and mobile access-which is an absolute must if you ask me.
So, exactly what are the implications of Spotify’s portended success? Well for starter’s, the company’s label deal structure and subscriber based business model are inherently profitable for the company. These two key factors have the potential to reap financial success for the company in 2013, something to the tune of $500 million. Secondly, the service’s customizable offerings are a total draw for new and existing users. From an editorial app that enhances your musical experience, to an app that locates local concerts, Spotify has created a new and improved portal that (legally) gives you everything that you could imagine where music is concerned. This is vital for the modern day music industry that was rocked by the likes of Napster and other illegal sharing sites.

The fundamental takeaway from Spotify’s success is to create a service or product that is equally beneficial for consumers, as it is profitable for your business. Not only must your product or service be beneficial, but it must also carry distinctive qualities in comparison to what is offered in the market. In a nutshell, draw you potential patrons in with a new and innovative product or service, and keep them engaged with relevant and valuable features. For Spotify, up next on the horizon is a web-based version of its desktop software that will enable users to access their custom library while away from their computer or mobile device. This is truly one step for music lovers, one giant leap for saving the music industry.