MySpace Music: Just In Time For Christmas

An interesting article published in the UK last week asked the provocative question: are we drowning in music? In other words, has the currency of music been irretrievably de-valued by the rising tied of mediocrity? (And no, that wasn’t a mixed metaphor).

 This post isn’t about to answer that question, but the insight does provides a nice introduction into the world of music entertainment and the growing plethora of online, music-related sites. In Australia, the ranks of music streaming and retail services will shortly be joined by the likes of Guvera, MyDJ and the gorilla of them all, MySpace Music - the latter scheduled for release before Christmas. 

 We’re not short on services, but what about demand? At what point do we reach saturation where the audience hygiene audience factors start to drop, and in turn, the CPM rates for ad-based music services also start to weaken? But that’s a whole other can of worms.

There are two market metrics Victrix uses here: Nielsen and Comscore. The former suggests online music entertainment has in fact peaked, and now skims along at about 3m uniques a month (March 09) - down from 3.4m in March 08.

In comparison, Comscore considers the glass half-full, and reckons the audience for online music entertainment has grown 21% in the last 12 months, to 4.3m uniques a month (March 09). Again, this isn’t about picking a fight with one or both of the world’s largest panel methodologies; I’ll leave you to ponder the reasons for the discrepancies in audience figures before a more informed opinion is expressed. Both figures exclude online music retailers (and associated applications).

However, where one platform seems to reflect a depleted, almost exhausted market for music entertainment, the other is reporting double-digit growth; not just in terms of the overall sector, but for individual players, including Last.FM - up 115% to 342,000 uniques a month - and even locals visiting MySpace Music (US) - up 72% to 935,000 uniques a month. 

Other strong players include MTV Networks (again AUS visitors to US sites) up 60% year-on-year, Universal Music Group up 52%, and the ABC’s Triple J, up 25%.

These audience stats aren’t the makings of an exhausted or confused listening audience. Far from it. In fact, with improved AI and smarter curatorial processes (behavioural targeting), online music entertainment will only evolve into a more relevant service offering.