Brilliant Technologies Corp. (fka BLLN)

[Faithless]

just got this google alert...its actually an article about spotify...look in the comments section..interesting

http://news.cnet.com/8301-13577_3-10389027-36.html

by robinkent November 3, 2009 4:44 AM PST
Yesterday I had my first real experience with Spotify. I live in New York, but this week I'm staying with a friend in London. I liked it, I liked it a lot. Unfortunately with it's current business model I doubt it will survive once the investors money dries up. From a consumer standpoint it's great, with the one exception being the annoying radio commercials which pop up unexpectedly between plays every 10 to 20 minutes. I accept this happens when listening to radio stations, but when I want to listen to an album I don't want an ad interrupting my listening experience.

Having been involved with a number of "free" music ventures I fear for the long term success of Spotify. Getting the balance right between too many ads and not enough to pay the bills is part art, part science, with a huge smattering of luck. Right now they don't have enough radio commercials, or banner ads to generate significant revenue to satisfy the demands of the labels and the publishers. If they are able to increase the frequency of commercials the consumer experience will suffer. Today the gaps between radio commercials are long, but the more successful they become the shorter the gap will be and the more annoying for the consumer.

I could enjoy an ad free experience if I took out a subscription, but why should I when free music is available almost everywhere. A subscription service should offer value beyond the monthly fee. Until a service figures that out (supported by the music industry) subscription services will never amount to much.

Also it should be noted that the advertising industry isn't holding its breath waiting for the arrival of another "free" music site, they already have plenty of places to reach young consumers. Spotify or any other new model is going to have to deliver an outstanding experience and generate a huge fan base if they hope to secure real blue chip ad dollars. I truly wish Spotify the very best of luck as the music business needs to grow and change if it is to survive. These type of services should be supported, dare I say be treated as partners not just short term cash cows.

Full disclosure. My company Rebel Digital is an adviser to Qtrax. Regardless of this relationship, what I have said is the view of a genuine music fan.

Robin.