Friday, January 2, 2015

Streaming

Do you stream any music?  I use Pandora once in a while.  When I'm at my Mac I pretty much listen to radio--KXCI, WMNF, KRCL, and WRUV.   I have tried Apple's iTunes Radio (like Pandora) but frankly it's not as good for my kind of music.   I do not listen to much pop or rock or whatever it's called these days.  I've never used Spotify or YouTube (for music).

Here's a piece on the economics of streaming.  If the companies would realize that a small amount of money from a large number of people is more doable, then they might make some cash.  For example, Pandora has about250 million users but only 3.3 million of them cough up $5 a month.  Frankly their service is not worth $60 a year.  I listen but I'm sure the ad revenue from users like myself don't really cover their costs.  The 3.3 million paying customers yield about $16.5 million a year.

If Pandora tried something like $1 a month, that's just $12 a year, maybe half of us non-payers might decide it's a reasonable fee.  Gee, 125 million times 12 is $1.5 billion.  Imagine if more services priced low, allowing people to pay a reasonable amount, it might be a bit better for all.


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