RAIN 10/4: Studies say ad economy to fuel mobile music and create jobs

Paul Maloney
October 4, 2012 - 12:15am

The U.S. mobile music industry will see its ad-driven revenues gain share over the next four years, accounting for 86% of all such revenues by 2016, if eMarketer's forecast is correct. By that time, overall mobile music revenues will hit $1.68 billion (that's from $429.3 million this year), says eMarketer. 

Ads already account for nearly 70% of mobile music revenues (the rest are split between subscription fees (17.2%) and per-song download charges (14.1%)).

Read more on the study from eMarketer here.

Meanwhile, a study commissioned by the Interactive Advertising Bureau (IAB) shows the ad-supported Internet economy workforce doubled between 2007 and 2011 (from a million to two million). Taking into account jobs that indirectly benefit from the Internet, that number grows to 5.1 million.

Interestingly, "most of the job growth in the Internet economy happened not in the large companies like Google, Microsoft, and Yahoo, but in smaller ventures and one-man shops sprinkled across the country. These entrepreneurial outfits – a combination of eBay sellers, self-employed web designers and app makers — contributed 375,000 of the two million jobs directly produced by the Internet ecosystem. App-making alone accounted for the equivalent of 35,000 full-time jobs, though the work was actually spread out over many more part-timers," reports a The Wall Street Journal Digits blog (which you can read here).

Paul Maloney
October 4, 2012 - 12:15am

Marketron announced today its purchase of Emmis Interactive, the new media technology and consulting division of Emmis Communications.

Marketron's own Marketron Interactive division will absorb the Emmis Interactive software and services, and retain the executive team of Deborah Esayian and Rey Mena. Emmis Communications will continue as a Marketron customer, and retains an economic interest in Marketron's product and service offerings.

Marketron provides business software solutions and services to more than 7,000 media organizations, managing an estimated $15 billion dollars of annual advertising revenue.

Read the press release here.

Paul Maloney
October 4, 2012 - 12:15am

In the lead-up to tomorrow's (or today's depending upon when you read this!) RAIN Summit Europe in Berlin, we've been introducing companies and professionals that are leading the Internet radio industry across the Atlantic. Probably not surprisingly, our host nation will well-represented at the Summit, with more industry professionals there than any other country. We've already featured companies like Aupeo (here), NRJ International (here), RTL Radio Center Berlin (here), cjlea.com & Dig This Media, and RMS (here).

While most of our guests will be moderating or participating in panel discussions, we'll take time for a research presentation from Goldmedia Strategy Consulting (Goldmedia Holding GmbH) Managing Director Dr. Klaus Goldhammer (left). Goldmedia Group provides national and international clients with high-quality consulting and research services in the fields of media, entertainment, and telecommunications. Dr. Goldhammer will present his firm's new study, "Web Radio Monitor 2012," a look at online radio listenership in Germany.

Andreas Hamdorf is Director of Ad Operations for pilot, an independent, owner-run agency group for modern brand communication in Germany. Hamdorf will take part in the "Agency Roundtable - Internet Radio Advertising" panel, which will examine the benefits and challenges of streaming audio as an ad medium.

You're likely familiar with on-demand services like Spotify and Rhapsody. Have you had the opportunity to try simfy? It's a German-based on-demand music service which bills itself as "a fast and easy way to listen to music - no limits, no hassle, everywhere and at any time." Simfy CEO Gerrit Schumann will join us for the panel "Personalized Radio," to focus on individualized listening options available in streaming platforms.

Like Americans, Germans love their cars! Technologists are quickly moving to integrate automobile dashboards with Internet and mobile functionality, including audio entertainment options. Our panel "The Connected Dashboard" will focus on the progress and potential impact of in-car connectivity. The panel will be moderated by Stefaan Sonck Thiebaut (left), Co-Founder & General Manager of OpenSynergy, a Berlin-based software company working in the automotive software space.

Peter Burgner is Project Manager for Music Services & Web Radio at BMW Group, Germany's home of world-famous automobile brands like BMW, MINI, and (yes) Rolls-Royce. Wolfgang Zehrt (left) is Director and a Board Member for DAPD Media Holding (DDP Direct), a Berlin-based news agency based in Berlin, which serves a customer base of 700 media outlets like newspapers, magazines, online media, TV and radio. Both will also speak on "The Connected Dashboard" panel.

Our keynote speaker is Spotify's European GM and VP of Ad Sales Jonathan Forster. Spotify now has 15 million active users worldwide, 4 million of whom pay for the service every month. Besides its on-demand streaming product, Spotify Radio is a personalized radio stream listeners create based on artists, songs, or genres, which can be further influenced through "thumbs up/thumbs down" song ratings. While Spotify is based in Sweden, since March it's been available in Germany. And this week, Spotify announced a special mobile tariff deal to make the service available to Deutsche Telekom customers.

We hope you're able to join us for our very first RAIN Summit Europe, Friday at Berlin's nHow Hotel. All the details are here.

Herzlich willkommen in Berlin!

Paul Maloney
October 4, 2012 - 3:20pm

Well, the 2012 version of a postcard is a smartphone-snapped photo, right?

Our RAIN Summit Europe event begins tomorrow morning at 9am (and that's pretty early-morning for those in the U.S., as they're seven hours ahead of us here in Chicago), but we already have some photographic evidence that the RAIN delegation has arrived!

Below is a shot from yesterday evening's pre-Summit Oktoberfest outing, with (L-R) Triton Digital's Eric Whitlock and Daniel Karlsson; Wilkinson, Barker, Knauer's David Oxenford; RAIN publisher Kurt Hanson, and Triton Digital's Patrick Reynolds. Below that is a sneak-peek at the room in the nHow Berlin where the Summit will take place.

Watch for more coverage (and photos) from RAIN Summit Europe soon!

Paul Maloney
October 4, 2012 - 12:15am

Pandora has released its self-reported listening for September. Listeners spent 1.15 billion hours with the service (up 67% from last September, but slightly off from August's 1.16 billion (see August's numbers here)). Pandora says they now have 58.3 million "active" listeners (up 49% from September 2011; that number was 56.2 million in August 2012). Finally, Pandora reports its share of "total U.S. radio listening" for September was 6.53% (it was 6.30% in August, and 4.03% in September 2011).

Meanwhile, a federal court has tossed a lawsuit against Pandora, "for alleged privacy missteps following Facebook integration," CNet reports here.

The Next Web Insider reports a rumor that Microsoft is negotiating the acquisition of on-demand music streaming and subscription service Rdio. Read more here. We reported yesterday (here) that Microsoft is launching its own music service, Xbox Music, this month.

Streaming music service Rhapsody is getting space for its app with a special "visibly rich" interface on new LG, Panasonic, and Samsung "smart" TVs. Read more in Engadget here.