Spotify’s Asia Expansion: What Really Needs To Be Done

Spotify founders Martin Lorentzon and Daniel Ek

This is a guest post by Ario Tamat. Ario worked in the digital music industry in Indonesia since 2003, and currently works in the movie and TV industry in Vietnam. Keep up with him on Twitter at @barijoe or his blog on http://barijoe.wordpress.com

Recently, Spotify announced that it will be expanding into Asia and appointing Dan Brody, an ex-Googler who has lived and worked in Asia for 10 years, as the General Manager for Asia-Pacific. Dan Brody himself, according to his LinkedIn profile, has held a number of high-level positions in China, the latest being CEO of the Koolanoo Group, which owns and operates several websites in China.

Spotify has enjoyed success in some EU countries, and has had a lot of success with its US launch, especially since the integration with Facebook. It enjoys partnerships with all four major labels, which are Universal Music Group International, EMI Music International, Warner Music Group and Sony Music Entertainment; and also partner with The Orchard and Merlin Networks, which are essentially aggregators for independent musicians and labels.

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Spotify Will Expand to Asia

Aulia told me about news that is I am waiting for. Eventhough I have to wait for the next phase but it might be the opened door.

As written on TechCrunch, Spotify has hired former Google to lead the expansion to Asia. The article explains that former Google executive, Dan Brody, becomes General Manager Asia-Pacific.

Alexia Tsotsis on the article stated that Dan Brody is searching for the candidates for Spotify employees to be placed in Hongkong, Singapore, and Sydney.

Spotify is an on-demand-streaming music service. We can listen songs from their collection, which are around 15 million songs with support from 4 big recording company. Users pay the monthly service about $5 and $10 for mobile devices per month (data retrieved from Businessweek Indonesia magazine, 18-24 August 2011).

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Waiting for Startup and Service in Music Segment to Continue Growing

In my opinion, the growth of music industry should be in line with the internet development. Both music and internet have been very close companies for a writer and music listener who always connected to the cyber world. So how to fulfill this two areas of enjoyment at once, especially using Indonesia’s local application and web-based service?

I see that music segment in the internet is still managed by telco – provider – label, focusing in music download and online music store (RBT – full track). On the other hand, there are also some media with music content, including the news of the musicians themselves. Some other segments are supplement for their printed version.

Other than those types may have the amount increased such as startups or another independent media. There are many media outside the mainstream that covers many sidestream music growths such as Musikator, YesNoWave, Deathrockstar, MusicBandung, GeekBible. YesNoWave has become an online music distributor or netlabel. Other examples of netlabel are Invasi Records, Reload Your Stereo, Stone Well Sound Records, Inmyroom Records, Hujan! Rekords, Mindblasting and StoneAgeRecords. This means there are enough recources for music content.

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Selling Music vs Selling Music as Experience

Several days ago, Indonesia’s Minister for Communication and Information announced that he was going to block 4shared along with the 20 other sites that have been shortlisted for access restriction across the country due to various copyright violations.

Additionally, the Minister also said that the cost of a downloaded song should not be too expensive, citing a range between Rp 500 and Rp 1000, adding that rights owners and publishers need to make a profit to sustain their businesses and creative ventures.

According to the Minister, people would not mind paying that amount to acquire music legally from the internet and that the payment method could be through credit cards or prepaid phone credits.

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The Drama Begins. Government Plans To Block 4Shared.

I’d knew this day would happen eventually, the day I fear the most. And yes, I am being dramatic when I have to say that Indonesian government through its minister of communication announces plans to block websites that distributes pirated music (MP3) files. Don’t get me wrong, I support this effort by the government to save Indonesian musicians, but when they announce to block sharing site 4shared, it’s a different story.

Quoted from Okezone while attending an event in Bandung, Minister of Communication and Informatics, Tifatul Sembiring states that the ministry haven’t blocked any site after the official initiative announcement a few weeks ago and that they’re focusing on blocking the big sites like 4shared.

Yes. 4shared.

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Tonehighway.com’s New Looks

Do you remember Tonehighway? Last time DailySocial wrote about this web based music player, is on Sepetember last year. Now they have new design and new facility. If looking at their Facebook account , they’ve applied their new design at the end of may 2011.

Tonehighway enables their user to listen to music collection (mostly sidestream music) while reading about information on the musician such as, biography, show schedule, images, etc. users can also share their favorite music to their chosen social networks.

It is a significant change because they revamped almost everything including how users can interact with their service. If previously their design was focused on being music player, now it looks more like social network with “bar” to play music on the lower side, which continuously play music while users browse about the musician’s information.

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Amazon Akuisisi AmieStreet

Layanan penjual musik digital AmieStreet mengumumkan bahwa mereka telah diakuisisi oleh Amazon pada tanggal 8 September kemarin, dan mulai 22 September 2010 seluruh layanannya akan di-forward ke Amazon.com.

Para pengguna diharapkan mengunduh semua file yang pernah mereka beli dan menghabiskan seluruh credit yang masih mereka miliki sebelum tanggal tersebut, karena nantinya tidak akan terbawa ke layanan milik Amazon.

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BandCamp Terapkan Model Bagi Hasil

BandCamp, penyedia layanan jualan musik digital yang memungkinkan band atau artis bisa langsung menjual sendiri musiknya, mengumumkan bahwa mereka akan menerapkan model bisnis bagi hasil setelah sejak awal berdirinya tidak menarik sepeser pun.

Model bagi hasil mereka adalah mengambil 15% dari total transaksi, dan bisa turun menjadi 10% bila total dalam setahunnya penjualan melebihi US$5000.

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