Good news for the German online music market: After years of negotiations GEMA and the industry association BITKOM have finally reached an agreement on online music services. As announced in a press release on Dec 8, the agreement covers the compensation for authors, that music services have to pay to the GEMA, and allows for flat licence fees for streaming services.
A new music streaming service called Rara.com (that’s “Lala” in Chinese I believe) launches in the US and 15 European countries. Check it out on Rara.com.
I do wonder though: With 10 Million songs at their fingertips – THAT’S the one they pick for their promotional video?!
Today Deezer (“the world’s leading music streaming service”) released details of its world-wide launch plan: Starting on 8th December, 2011 their ambitious goal is to be in 200 countries by June 2012. This is their launch schedule:
- December 8th, 2011: Ireland, The Netherlands
- By December 31st, 2011: Greater Europe: 45 countries including Spain (Dec. 13th), Italy (Dec. 14th), Germany (Dec. 15th) & Russia (Dec.19th)
- By January 31st, 2012: Canada and Latin America (38 countries)
- By February 28th, 2012: Australasia and Africa (41 countries)
- By June 30th, 2012 : Rest of the world (81 countries)
Notably this does not include the US. Says Deezer:
“Deezer strongly believes in the globalisation of music and has chosen not to focus on the USA and Japan, which only represent 25% of global music consumption, due to market saturation and low growth forecasts.” (source)
Spotify announced that they are introducing Apps within Spotify. Basically little add-ons similar to what you know from your Firefox or Chrome. As of now apps are only available for the beta version of Spotify.
The list of apps so far includes well-known players such Last.fm, Songkick as well as music reviews from Rolling Stone or The Guardian.
Looking forward to seeing what developers come up with!
Previously only available in Germany, Austria and Switzerland, Simfy announced earlier this week that they are now available in Belgium as well. According to Gerrit Schumann, CEO of Simfy, the Belgium launch marks the starting point of a more aggressive expansion strategy.
Approaches to pricing can be categorized into three groups that are based on either costs, competition or customer value (Ingenbleek et al. 2003, p. 291).
Cost-plus pricing implies the determination of prices based on fixed and variable costs. While the implementation of cost-plus pricing is straightforward (Simon & Fassnacht 2009, p. 190) – e.g., by adding a profit margin to average costs (Avlonitis & Indounas 2005, p. 48) – this approach is unlikely to yield optimal prices (Simon & Fassnacht 2009, p. 191), as concentrating on costs offers no insights into whether or not the resulting prices are acceptable for buyers. Moreover, for an online service provider with high fixed costs and close-to-zero marginal costs, the correct determination of price would, to a major extent, hinge upon an accurate estimation of future sales in order to accurately spread fixed costs.