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Summary:

Music services such as MOG, Rhapsody and others were expected to be part of the big Facebook re-launch. They were, except as an afterthought. Somewhat predictably, Mark Zuckerberg brought the CEO of Spotify on stage while competitors were relegated to little icons on a single slide.

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For the past few days I have been reading about various music services such as MOG, Rhapsody and others being part of the big Facebook re-launch. They were, except they ended up being an afterthought. Somewhat predictably, Facebook founder Mark Zuckerberg brought Daniel Ek, CEO of Spotify, on stage. Spotify got the big billing while competitors were relegated to little icons on a single slide.

Spotify, which announced general availability today, is tightly weaved into Facebook and is betting that Facebook’s global audience is going to turn the music service into a powerhouse. The on-demand music service shares investors with Facebook, both DST Global and Horizons are two common investors in the two companies. More importantly, Zuckerberg is a fan of Spotify and he uses that to listen to Green Day.

  1. Zuckerberg has to use Spotify to listen to Green Day? He can’t afford to buy the songs?

    Seriously, what is the big deal about all these music services? How does anyone make money off them? I don’t get the hype over Spotify, I installed it on a phone and desktop, and it just duplicated a lot of what was already in both places. They must have a great PR team, because you would think they just invented music, instead of coming up with yet another delivery scheme for it.

    Just what value will FB add to these music services, and how are they going to make money? They supposedly have more users than Google, but generate only a tenth or so of the revenue, and a smaller percentage of Google’s profits.

    It’s not that slow of a news day, HP’s board just outdid themselves. Again.

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    1. Spotify is the same thing as MOG, Rdio, Rhapsody, Napster. They’ve really invented nothing, although the features are slightly different between the 5 of them. Spotify has generated amazing PR and has converted a decent number of people to paid subs.

      I think the noteworthy thing is that Apple actually launched a decent, branded subscription music service, it would have more paying customers in 180 days than the entire subscription music does today.

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      1. Apple launched a subscription service? Do they know this themselves?

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      2. Apple never invented anything either. To downplay what spotify has achieved in terms of ease of use, caching, and end user experience to beat the competition is ridiculous.

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    2. Its the shared playlists. I didn’t think much of it either til I discovered that feature. Cmbne with people who like the kinds of music you do and prerty impressive.

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    3. @Kenneth
      “Apple never invented anything either.”
      yeah, right.

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  2. KenG,
    This is more about adding in additional reasons for people to use FB and to help solidify the service as being the unifying layer for everything everyone does online.

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  3. Something definitely changed this week with regards to how Facebook rolled out Facebook Music. If you watched the keynote today, you might have noticed how quickly they glossed over the music and movies part of it. They originally had an embedded player that would work with all of the third party music services, but they killed it in the run up to f8 for unknown reasons.

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  4. I don’t see this as a way to make money directly, but as a way to keep customers from going to Google+. “One stop shop” for everything, which actually is a excellent strategic move. If you keep the people, perhaps get one or two more customers you will make money by keeping them online at your site longer which increases the worth of advertisement. It is also much more convenient to purchase while you are there instead of jumping over to places like the Apple store. Anyway, that is how I see it….

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  5. It wouldn’t surprise me sounds like a solid move. I do know other groups of all kinds of bands and artists. The tee group, gemini c group and wendy and short have mentioned it.

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