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Music Streaming, Start Ups and Piracy

By IT Chimes
In project management

Hmmm, if you have not visited thepiratebay then it is either because you are not aware of it or it is not accessible for you. Here is a quick stat for you from that site.

Music Size Seed Peer
Daft Punk – Random Access Memories [MP3 192] 101.64 MiB 3799 76
Billy Van Dubstep Media Bundle 43.58 MiB 2781 4
Robin Thicke Feat T.I. And Pharrell – Blurred Lines {2013-Single 10.08 MiB 2763 48
Justin TImberlake – The 20/20 Experience (Deluxe Edition) 2013 P 184.4 MiB 2636 208
Daft Punk – Random Access Memories (JP Deluxe Edition) 2013 320k 181.45 MiB 2627 150
Gods Robots (wav) BitTorrent Edition 215.69 MiB 2553 3
Drive A – The World In Shambles – BitTorrent Edition 44.6 MiB 2459 15
VA-The Great Gatsby SoundTrack[Deluxe Edition](2013) 185.23 MiB 2291 176
Macklemore & Ryan Lewis – Thrift Shop (feat. Wanz) [Single – 9.13 MiB 2239 21
Bruno Mars – Unorthodox Jukebox (iTunes Deluxe Version) 2012 320 173.74 MiB 2009 276
Django Unchained (Original Motion Picture Soundtrack) (iTunes Ve 142.02 MiB 1954 100
Daft Punk – Random Access Memories {2013-Album} 171.27 MiB 1769 44
Rihanna – Diamonds {2012-Single} 8.66 MiB 1725 8
VA – Fast And Furious 6 (Original Soundtrack) 2013 OST 320kbps C 117.14 MiB 1690 154
Drake – Started From the Bottom (Explicit) {2013-Single} 6.67 MiB 1604 12
ASAP Rocky Long Live ASAP (Deluxe) – 2013 84.49 MiB 1559 57
ChesterFrench-BitTorrent 35.82 MiB 1546 5
The Official UK Top 40 Singles Chart 02-06-2013 369.04 MiB 1527 278
Macklemore & Ryan Lewis – The Heist (Deluxe Edition) [Album 193.05 MiB 1518 141
Imagine Dragons – Night Visions [Album – 2012] 119.31 MiB 1463 151
Daft Punk – Random Access Memories [2013] 320 171.45 MiB 1409 36
Icona Pop – I Love It {2012-Single} 5.97 MiB 1388 13
PSY – Gangnam Style (강남스타일) [Single – 2012] 8.53 MiB 1366 5
Daft Punk – Random Access Memories (2013) – 320kbps 180.78 MiB 1360 32
Frank Ocean – channel ORANGE (Explicit Version) [2012-Album][SW] 130.15 MiB 1342 85

These are top 25 torrents only, which you can freely download and play without spending a single damned penny. There are hundreds of thousands of tracks waiting there to be downloaded. See the number of people who has downloaded those. Also remember, out of 30 downloaders, 1 people seed which means a hundred thousand downloads are already done for most of these tracks. Then there are thousands of these torrent sharing websites. It will be a very conservative estimate to say at least 1 million people have downloaded these music albums from torrent sharing alone.

And then there are those big names, Google Music and Apple Music. These brands are so big that neither they need any publicity nor any effort to make their music streaming systems become a habit for their own ecosystem users. They have the user base, the financial strength, the proven brand identity and R&D to take care of every need of music streaming even if not making any profit.

And again, there are those music streaming companies who are coming up with fresh ideas and even more fresh hopes of making it big and changing the scenario. How many names you want?

You must have heard of (and used perhaps) Pandora and Spotify. Then there is StereoMood, Rdio, GrooveShark, Twitter Music, 22Tracks, Whyd, 25mostplayed and God knows how many more.

But the eminent threat to the third type are the first two types. Either you dont want to spend data in streaming music (or have a flaky connection or capped data) or you use Google Music or Apple Music which comes as default widgets with your smart device. Why would you even go to 25mostplayed.com to listen to music? Even more dangerous question for the CEO & owners of these start ups, how will a person wil even come to know of your service?

The financial side is scarier for these start ups. None of these companies have been able to make a profit as reported by Jill Kransky here. Not only small companies, but even the big names of small start ups, like Pandora and Spotify failed to register a profit due to the high licensing fee they needed to pay to the royality holders. When you need to pay 70% of total profit to licensing fees, good luck with your business. None has been able to break this jinx till date.

Here again, look how the big brands triumph. Apple got a big discount by negotiating directly with the music labels which no start up can think of achieving. Nor can these companies can go on indefinitely, waiting for a magic stone to help them reach the break-even.

Overall, these companies have one route, to get acquired by big names. Not only this is the reality but many companies are opening up with the hope of getting acquired by a big company. There is a new trend of setting up a prospectful business and then sell it to a big name. This is adding to the existing all engrossing echosystem of these big names but this is the easy way out. And this is what is happening all over the places.