Kamis, 14 Maret 2013

Pandora & Spotify -- 1 More Goliath Coming Your Way -- How Can You Win?

Last week I wrote about goliaths Google and Apple widely reported to be soon starting their own music subscription/streaming services to compete directly with Pandora, Spotify and the host of other "Davids."

Well, that ain't all.  Yesterday, just after Pandora and Spotify had wiped off the sweat from their collective brows and recovered from that news, it was reported that Twitter too likes music -- and plans to enter the fray, Tweet-style.

How can much smaller players like Pandora and Spotify "win" against this coming onslaught?

First, they must offer a significantly better and differentiated customer experience.  Their service simply must be the best.

Second, they must use every effort to optimize their economics as compared with the goliaths.  Most significantly, they must reduce overall COGS -- and that means, primarily, to minimize overall music licensing costs.  Here, the fact that these players are "smaller" should help them.  No music/content company wants to see Apple, Google or Twitter corner the subscription market a la Apple via iTune downloads.

Third, each must think outside of the (Pandora) box to offer a differentiated "experience" and differentiated customer engagement.  One example here is to bring their customer engagement into the physical/offline world -- "Outbox" music festivals for Pandora is just one such possibility (I wrote about this in my recent Huffington Post article titled "8 Ways to Maximize Live Sports & Music Revenues").

Sounds easy?  It ain't.  But, urgency creates opportunity ....

Tidak ada komentar:

Posting Komentar