Spotify on the Future of Music Delivery

I sat in on the Future of Music Delivery Keynote interview with Spotify CEO Daniel Ek and author Eliot Van Buskirk on the last day of SXSW Interactive. Buskirk's covered the digital media industry for ten years in various publications. This keynote was not nearly as crowded as the Evan Williams one was at the beginning, but definitely kept a lot more people hanging around through its entirety.

The first part of the keynote was essentially a product demo for Spotify, and I can't imagine that an hour of that would've kept people around (nothing against the service itself), but things got more interesting once it turned to more generalized conversation between the two on stage, about where digital music is going (if Spotify is in fact where it's gong). 

Spotify is quite popular in Europe, but has some licensing issues to work out before it can work here in the U.S. Ek says there could be slight changes made to Spotify for an American release if that happens. They are working on the next generation of Spotify, and pre-install deals will likely be key for the service's continued success. Ek says right now, you can go in and pick up a smartphone, it comes preinstalled with Spotify and you can get three to six months.

With the exception of the iPhone, most lack really good media players, says Ek. A lot of people use Spotify as a media player on Android/Nokia handsets, he says, and if you're a BlackBerry user, you want it to work with that too. "We want to enable your library on all of these devices," says Ek. "We want to make music like water."

One of the more interesting parts of the keynote was when Van Buskirk took a question from someone on Twitter about Spotify's advertising - something along the lines of if somebody listens to a lot of down-tempo music, will Spotify start filtering ads by mood?

He says they have targeting, and they continue to learn more about users, and more and more brands are discovering Spotify. "We've seen a lot of promising results with advertisers who have included artists," says Ek. He says click through rates have been 3, 4, and 5%. "If you look at traditional metrics, that's super high."

As far as the question asked, Ek says, "that's definitely something that we want to do."

You can figure out brand preferences, and if people are in the same demographic (like live in same place, listen to the same kind of music), they might get a different ad if they drive a BMW vs. an Audi, he says. He also says the ad model's "getting better every month."

On another note, Ek thinks playlists are the new mixtape. With Spotify, among other services, they can be shared with others. Spotify users (of which there are seven million), he says, have a hundred million playlists, and about thirty percent of playlists are albums. "A lot of people say the album is dead," says Ek. "I disagree  - maybe pricing needs to be adjusted..."

All in all, the future of music delivery, according to Spotify, appears to be that users should be able to access their music libraries from virtually any device (through the cloud), share playlists with friends, and they can subscribe and/or get highly targeted advertising.

A lot of work remains to be done as far as making this all a universal reality, but in a nutshell (at least with Spotify), this seems to be the vision for what's to come.

Yahoo Lands Exclusive Mobile Deal With Telefonica

Here are a few facts about Telefonica: it's a huge telecommunications company.  It's based in Spain.  And it's a good friend of Yahoo's, considering that Telefonica has named Yahoo the exclusive search and search advertising provider on its mobile portal in Spain.

The Telefonica-Yahoo relationship actually goes back a couple of years, since in late 2007, Telefonica made Yahoo oneSearch the main search service on 15 other mobile portals.  This is just a big step forward in terms of people affected and money at stake.

Scott Ellison, IDC's Vice President of Mobile and Wireless, explained in a statement, "The expansion of Yahoo!'s mobile search partnership with Telefonica into Spain continues to demonstrate Yahoo!'s ability to provide highly personalized and localized mobile search experiences and further establishes its position as a leading mobile customer experience provider.  Building a significant European market presence is essential toward executing a successful mobile strategy."

Strengthening its relationship with Telefonica might be essential to keeping Yahoo out of court, too.  Telefonica's CEO has expressed an interest in getting money from Google - "search engines use our network, without paying anything for it," he said about a month ago - but the expansion of this partnership increases the odds that he'll leave Yahoo alone.

Unfortunately, the terms of this deal haven't been disclosed.

Twitter Changes the Update Button to “Tweet”

When Twitter users go to post a new tweet, they have in the past used a button that says "update" (at least from Twitter.com...that varies when you get into all the different apps Twitter users use). Now, that button says "Tweet".

We're not sure exactly when the change was made, but it appears to have been very recently, as there is quite an outpour of Tweets from users mentioning that they are now seeing the "tweet" button. Perhaps this is Twitter way of asserting some kind of ownership of the word and the brand that it carries.

Twitter made "retweeting" an official feature last year, after the community-born practice grew to mainstream use.

Interestingly, Retweet.com just sold for $250,000 this week.

The tweet button isn't the only new thing going on with Twitter's website this week. Twitter is currently in the process of rolling out geolocation features on the site, after having had such capabilities available via the API since November.

Twitter CEO Evan Williams will be speaking at SXSW early next week (WebProNews will be there covering it). We may get more interesting news from the company there (some expect an ad platform to be announced).

Update: Looks like some have noticed this for at least a couple days.

Twitter Changes the Update Button to “Tweet”

When Twitter users go to post a new tweet, they have in the past used a button that says "update" (at least from Twitter.com...that varies when you get into all the different apps Twitter users use). Now, that button says "Tweet".

We're not sure exactly when the change was made, but it appears to have been very recently, as there is quite an outpour of Tweets from users mentioning that they are now seeing the "tweet" button. Perhaps this is Twitter way of asserting some kind of ownership of the word and the brand that it carries.

Twitter made "retweeting" an official feature last year, after the community-born practice grew to mainstream use.

Interestingly, Retweet.com just sold for $250,000 this week.

The tweet button isn't the only new thing going on with Twitter's website this week. Twitter is currently in the process of rolling out geolocation features on the site, after having had such capabilities available via the API since November.

Twitter CEO Evan Williams will be speaking at SXSW early next week (WebProNews will be there covering it). We may get more interesting news from the company there (some expect an ad platform to be announced).

Update: Looks like some have noticed this for at least a couple days.

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