Who Will Be the Apple of Streaming Music?

Rhapsody Gains 100,000 New Subscribers Since April

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Since April, Rhapsody has gained over 100,000 net new subscribers. The total number is upwards of 750,000. The company estimates that there are around 1.5 million US music subscribers, which means that it has captured around half of the market. While mobile has helped fuel their growth, Rhapsody is also speaking with cable television companies.

They hope that by bundling the service with other amenities like cable TV and high-speed internet, fans will be more prone to accept an extra charge of $10 on their monthly bills for music, as opposed to paying for it separately.

To put Rhapsody’s subscriber numbers into context, it’s worth noting that Spotify is reported to have over 750,000 paying users too. If Spotify comes stateside in 2011, they will be a direct competitor to Rhapsody, as well as, everyone else.

"In 2011, someone will become the Apple of streaming — perhaps Apple itself. Consumers are getting closer and closer to accepting renting over owning content," Jason Feinberg writes. "Companies such as MOG, Rdio, Spotify, and Rhapsody are poised to capitalize on this. With good timing, savvy marketing, and clear messaging that succinctly communicates the benefits, a streaming music provider can easily take the leading role in this race."

It looks like Rhapsody has a running start, but Spotify or Apple could catch up.

Originally published at hypebot.com

Who Will Be the Apple of Streaming Music?
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  • http://www.mcssafety.com Mike Streadwick

    I don’t know where Jason Feinberg gets his information, but why would consumers pay a monthly fee to simply rent content instead of owning it? For $10 a month I would want at least 10 songs that I could download and keep whether I stayed a subscriber or not. The only ones who benefit from the renting of music are the labels and streaming services, not the consumer.

  • http://artistwith.in Dylan

    What about GrooveShark? Its a wonderful service, with every song, band, album, i cant think of.

  • http://www.pbs.org/mediashift/2011/01/6-predictions-for-the-music-industry-in-2011018.html Jason Feinberg

    Hi Mike – your point is well taken – many consumers still feel that they’d rather have 10 songs to keep for $10. However, a massive (and growing) segment of music consumers would rather have access to millions of songs to listen to whenever they want than be limited to what has been downloaded on their computer. Streaming also has big value when you are in the mobile world where storage space is a fraction of what is on computer hard drives.

    It all depends on how you engage with entertainment. Netflix is certainly showing that consumers are quite willing to adopt this model for movies…

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