Disrupting the Music Industry – Vodafone and Spotify buddy-up

Today’s announcement making Spotify Premium available to Vodafone mobile subscribers amps up the pressure on the music and media industries with more disruption on the horizon.

They say that the number one reason that startups fail is due to distribution. It’s not a poorly designed product, or an inexperienced team or even bad customer experience. The challenge, as it is for any new business, is reaching a market.

Now, it used to be that we knew where to find music – on radio stations, at record bars and on Countdown. As a kid, I’d go and see Mrs Fry at Sandy’s Music in Dee Why (and yes, it is still there). With her son, Nigel, they were the go-to people when it came to new music – from the most interesting punk coming out of the UK through to the emerging Birthday Party more locally, they had their finger on the pulse. They could steer you through both country and western, knew the difference between Boy George and Marilyn and would even keep an autographed single behind the counter for you.

Nigel and Jenny were the central node in a local music marketing network. And each week, they inspired their customers with stories of new music, artists and breakthrough video clips. Their knowledge and passion was extensive and their enthusiasm was contagious. Each person would leave the shop knowing just a little bit more about the music they were about to listen to. In effect, they were creating and cultivating advocates – people who would influence their friends and family through music.

But the shift to digital has transformed this kind of relationship. Our music discovery is no longer curated in the same way by the programming directors, radio hosts or record bar owners. It’s at the mercy of algorithms, networks and big data stores. And it feels like it … but I digress.

Most importantly, we are playing under new rules of distribution. Music needs to find its audience – and increasingly, that audience exists at the end of a data stream. The device that transforms that stream into music is a phone. And this places mobile phone networks in a powerful position.

With the ink now drying on the Vodafone + Spotify partnership, Voda customers will have access to the Spotify Premium package as part of their plan – that’s $11.99 a month in value. And while the deals are not yet up on the website, I’d expect you can chat with customer service about it.

But this is not the end of the line for the music industry. Nor is it for the media industry. After all, disruption also breeds opportunity – and the very thing that made Sandy’s Record Bar popular is still the thing that we crave. And for all the technology under the sun, we haven’t been able to replicate that yet.

Leave a Reply

Your email address will not be published. Required fields are marked *