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Can Music Be Free? Parla Robin Kent

Robin Kent fondatore di Rebel Digital risponde ad alcune domande sul futuro del music business

Q: Is ad-supported music dead?
A: I think the overall picture is that it’s not really been tested yet. First. the internet advertising market has not gone in the direction that people have predicted. Digital might have overtaken TV ad spend in the UK but it’s a long way off from doing that in the US – perhaps a decade away. Everyone was predicting that by now the US would be getting to $40 billion, not $25 billion. So there has to be a paradigm shift in the type of advertising being used. Branded advertising has to make a major breakthrough. Until then it will be difficult for any site to attract big advertising at big prices.

Q: Why is there enough ad money to support some kinds of sites but not music services?
A: The problem with advertising is that the majority of the money goes to search – in the US 70% of ad dollars go to the top 10 sites – Google, MSN, AOL etc – and something like the top 89% of the ad dollar 25 billion goes to the top 50. So for a startup site to be able to deliver significant ad dollars is impossible regardless of what types of models.
Because advertising is done by computers these days, if you can’t sustain a site on network advertising things will be tricky. The networks are buying everything at the lowest possible rates. A good CPM (cost per thousand) would be 70 cents in the US. If you have a website with a lot of ad space you’re pretty much filling your site with network ads and you’re in the sub dollar range – if you’re a big site with a lot of impressions you’re using a lot of Google AdSense dollars coming in at 4 or 5 cents then your average CPM drops below 50 cents. Think about that on a 99 cent song and you see the problem. If you have a model that works in that environment you have an opportunity.

Leggi il resto da Music Ally

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