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MOG & The Coming Consolidation In Music Tech

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Is MOG for sale?  Despite conflicting reports, the answer is probably yes with the most likely suitor Rhapsody, who recently purchased Napster. But what matters much more is that we're almost certainly watching the early stages of consolidation in music streaming and much of music tech.

Within music streaming, the important consolidation trends to look for include: Who will be left standing and why? Will Apple or Amazon add music streaming? How will labels treat the remaining competitors when it's time to renegotiate contracts?

But that's just the tip of the iceberg. Music streaming isn't the only music tech sector ripe for contraction. Other sectors likely to face consolidate include:

  • digital music distribution – the victim of downward price pressure
  • online artists services tools – There are too many tools vs. the number of musicians willing to pay for them.
  • music discovery – No one has really cracked this code, but its hard to see why consumers will visit others sites to discover music when they can do it within Facebook and other social sites and apps that they are already using.

MORE: MOG is (kind of) For Sale

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3 Comments

  1. Great article. As far as consolidation is going I see this as being short lived and is mostly coming from older services with a lot of users that aren’t really generating revenue. The cost to compete and market a new service is tough because you have 1,000 plus services focusing on two platforms–Facebook and Apple..
    As Android develops more things will change..
    In the future their will be more younger start-ups to come in and compete with the major services that are dominate today. Apple and Amazon will have to start streaming in the future to survive..
    In my opinion Facebook will never be a place to discover new music..that space will remained scattered for a few more years

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