It’s no news that to a large extent, digital music has hurt the industry. Free downloads instead of buying CD have generated declining revenues for labels over the past 15 years. Yet in the meantime, online music has become a booming business – and there is no shortage of ideas…
There is light on the horizon for the music industry – digital light. Since MP3 files were introduced in the market, people have jumped on the opportunity to get free music from Internet piracy sites. Now, (legal) online music is experiencing a boom, which is compensating for the drop in CD sales. Of course, Internet technology plays an increasingly important role.
The drivers of innovation are not record companies or publishers, they are online companies with innovative ideas. As an example, I have selected 4 German companies with a great business model:
- musicplayr.com revolutionizes the way people listen to and discover music. Integrating different sources from all over the Internet allows users to “play and share their loved music” from a single platform.
- The Fraunhofer Institute for Digital Media Technology is focusing in Songs2See. With Songs2See, learning an instrument is like child’s play. The software takes the concept of music video games to the next level. It uses real musical instruments instead of video game controllers. Users can choose any song title from their own music collection, use the software to create training material and practice with their own instrument.
- Ondango is a beautifully designed shopping system that helps you sell your products on your Facebook page, by leveraging Facebook’s viral features. You can sell your music, food or just about any product you like. Having a shop on Facebook is new to many people.
- Pipe is a new way for friends to transfer digital files simply and directly — and in realtime. You can create as any kind of pipelines, the user can exchange files with, whether music, photos, text or graphics.
There are many more start-ups preparing to make their way into the industry, and not only in Germany! So music owners can look forward to a bright and innovative future.