Spotlight on Spotify: Facebook Integration, Radio Feature, Impact on Piracy

  • Spotify has been drawing a great deal of media attention this week, more so than the growing number of other streaming music services.
  • Since the company announced its partnership with Facebook at the recent F8 event, Spotify has gained more than one million new users, despite the public outcry from those who question limiting the service’s signup to Facebook users only.
  • In response to concerns regarding Facebook’s media-sharing philosophy, Spotify released a new update that enables users to access the Facebook app without sharing their listening habits, reports Digital Trends. This may be good news for subscribers not happy with the recent announcement regarding Facebook integration — and could potentially serve as a model for how others offer access to services via social networking.
  • In related news from The Hollywood Reporter, Spotify recently released a radio feature in the U.S. that has long been available to European users. Radio will be accessible on the desktop client, but not on the Spotify mobile app. The add-on is reportedly in no way a Pandora killer, due mainly to its lack of mobility and attention to detail.
  • Additionally, Digital Trends reports that Spotify may be having a significant impact on music piracy. Illegal downloads in Sweden have reportedly dropped 25 percent since Spotify launched there in 2009. “Here in the U.S., Spotify isn’t the only option — and it may not even be the best, depending on user preference. Pandora, MOG, Rdio, Grooveshark — the list goes on,” indicates the article. “We don’t yet have numbers to show how these services are affecting music piracy in the U.S. But we’d put our money on them having a similar effect as Spotify is having in Sweden.”

Zuckerberg Vision of Sharing Everything We Do Online a Terrible Plan?

  • Farhad Manjoo, writing for Slate, offers a compelling counterpoint to Facebook’s updated “share everything with everyone” philosophy.
  • The article suggests that Mark Zuckerberg’s vision for Facebook’s newly-designed profile feature (“it’s called Timeline, and it’s beautiful”) involves encouraging sites to develop social apps within Facebook, a grand vision that could dramatically change our digital lives. On the surface, this sounds like a fascinating idea, but there may be problems that evolve from too much sharing.
  • “If Facebook’s CEO has his way, everything you do online will be shared by default,” explains the Slate article. “You read, you watch, you listen, you buy — and everyone you know will hear all about it on Facebook.”
  • The article uses Spotify, Netflix and Hulu to illustrate Zuckerberg’s concept of “frictionless” sharing: “What he means is that I don’t have to bother with the ‘friction’ of choosing to tell you that I like something. On Facebook, now, merely experiencing something is enough to trigger sharing.”
  • Manjoo does not have privacy concerns or hesitation regarding Facebook’s financial gain based on his personal information. However, the author believes that the “nightmare” of “frictionless sharing” is more about Facebook killing taste. He believes that Zuckerberg is essentially lowering the bar by providing an all-access pass to things we don’t necessarily share with everything because they aren’t worth mentioning in the first place (read: boring).
  • While Manjoo enjoys sharing and discovering new media via Facebook and Twitter, he fears the day these services no longer serve as tools for navigating recommendations once they are bogged down in minutiae.
  • “That’s why I welcome any method that makes it easier for people to share stuff,” he writes. “If you like this article, you should Like this article. And even if you hate this article, you should Like this article (add a comment telling your friends why I’m a moron). But if you’re just reading this article — if you have no strong feelings about it either way, and if you suspect that your friends will consider it just another bit of noise in their already noisy world — please, do everyone a favor and don’t say anything about it all.”

Will Licensing Deals Help Turntable.fm Compete with Pandora and Spotify?

  • Turntable.fm, a rival music service to Pandora and Spotify, is negotiating with the four major music labels to license content. Turntable.fm is a social media site that allows people to share songs with friends and other online users.
  • The New York-based startup is looking to create a deal that would be unique and allow users to legally stream music internationally, but CEO Billy Chasen has not disclosed the details of the proposal.
  • “Both sides are super eager to get this done, and we’re getting closer,” Chasen said. “We take very seriously the music labels and publishers, and we want to make sure they’re with us.”
  • Turntable.fm, which launched earlier this year and requires users to log in via Facebook, currently has about 600,000 users. The startup recently raised $7 million from investors including Union Square Ventures, First Round Capital, Polaris Venture Partners, Benchmark Capital, Lady Gaga’s manager Troy Carter, and Maverick Records co-founder Guy Oseary.

Media Sharing: Facebook Expected to Unveil New Service at F8 Conference

  • Facebook is expected to unveil a new service at its F8 developers conference in San Francisco on Thursday that allows users to share their music, TV shows and movies (for example, a user’s Facebook profile page would display the music being consumed to friends).
  • The New York Times suggests that Facebook has reportedly signed deals with Spotify, Rhapsody, MOG, Deezer and Vevo that may bring millions of new users to their sites. Some are responding by introducing new ad-supported services to lessen the “friction” for new users (however, Rhapsody will reportedly continue with its subscription-only service).
  • Related news has been reported via ETCentric in recent days…
  • More information is emerging about Facebook’s new music service (which may be called Vibes). TechCrunch reports that “MOG, Spotify and Rdio have of course already been widely reported as launch partners for ‘Facebook Music,’ but notably, Deezer, SoundCloud and Rhapsody are new names.” This is based on “interesting references” found in the HTML code of the various streaming services.
  • In addition to an anticipated new music service, reports are circulating that the social networker may announce plans for bringing Hulu and possibly Netflix into the fold. We’ll see what shakes out this week, but until then the news media is in rumor mode: “Real-time viewing parties? It’s possible. Just not confirmed,” reports Gizmodo. “But the deal keeps things interesting for Hulu pre-buyout, its backing providers having all but jumped ship and offering their own streaming services.”
  • ETCentric will have more later in the week following the conference. Stay tuned…

Internet Radio for Vehicles Set To Explode: Pandora Driving Demand

  • The number of vehicles worldwide with Internet radio service is projected to grow from 168,000 in 2010 to 24 million in 2018, according to IHS iSuppli.
  • U.S. sales alone are expected to move from 149,000 to 10.9 million during the same period.
  • “The next several years will see an explosion in the use of in-vehicle apps in cars, driven by booming shipments of automobiles employing head units designed to integrate Cloud-based content,” says IHS. “These apps, whether built into cars or provided via connected mobile devices like smartphones, will provide a range of infotainment, entertainment, remote diagnostics and navigation services. Internet radio is expected to lead the in-vehicle app revolution.”
  • The study concludes that the following are currently driving demand: Pandora, iHeartRadio, Slacker and Spotify (and in the Cloud: Apple’s iCloud, Google Music and Amazon’s Cloud Drive).

Rdio for iPad App: Streaming Music Better Than Spotify?

  • Rdio has released a free iPad version of its streaming music app. According to the Gizmodo review: “Spotify may be stealing all the hype and pub for streaming music services but let’s not kid around here, Rdio still makes the best music apps across any platform.”
  • The review raves about the app based largely on its selection, album art, social aspects and quality music player.
  • Users can listen via their iPad headphones or through other devices thanks to AirPlay support — a feature that particularly appeals to the staff at Gizmodo: “I always thought it was funny to use the iPad as your music player but when you think about it, Rdio + AirPlay + Big Honking Screen gives you the biggest remote control in the house for the best audio system in your house with all the streaming music not in your house.”
  • For a better look at the interface, the post includes a brief video demo.

Music Service Spotify Responds to Use of Tracking Cookie

  • Researchers at UC Berkeley have found that digital music service Spotify is using a cache cookie method with ETags that still tracks when a user has ‘Private Browsing Mode’ enabled.
  • According to Digital Music News, the cookie technology “cannot be deleted, still tracks if the user blocks cookies, and even operates in browser stealth mode. In fact, if you try to delete this thing, the cookie dynamically regenerates.”
  • The cookie is powered by analytics platform Kissmetrics, which Digital Music News explains was also used by Hulu and others.
  • Spotify is reacting quickly, trying to head off a “Cookiegate” incident. “We take the privacy of our users incredibly seriously and are concerned by this report,” explained a Spotify spokeswoman. “As a result, we have taken immediate action in suspending our use of Kissmetrics whilst the situation is investigated.”

Spotify Sees Early Success with 70,000 Paid U.S. Users

  • Billboard reports that Spotify has already reached 70,000 paid U.S. subscribers, one week after the streaming music service’s invite-only launch.
  • It’s too early to tell what the initial success will mean in the long term since the service’s closest competitors have been on the market for years (Rhapsody and Napster, for example, have more than 10 times Spotify’s number of paid subscribers but took years to get there).
  • Spotify currently has an ad-supported free option, but also offers two paid tiers that start at $4.99.
  • Paid subscriptions provide ad-free service, unlimited play time, and mobile device access.
  • In a recent review, Digital Trends found the service “to be the most well-rounded service out of Pandora, Spotify, and Grooveshark.”
  • In related news, licensing firm BMI announced it has completed deals with Spotify and Turntable.fm to provide some 6.5 million songs to the online music services.

Music Streaming Service Spotify (Finally) Launches in the U.S.

  • Spotify has finally launched its U.S. service — and similar to its widely popular European version, users can listen free to any track, on demand.
  • Users can opt for ad-supported free listening, a $5 Premium ad-free service, or a $10 Unlimited service that allows users to store music offline and use Spotify on mobile devices (the iPhone app is now available). Users can also share their playlists or subscribe to those of other users.
  • Spotify has a reputation for fast, almost instantaneous playback and a catalog containing millions of songs. It will also scan a user’s iTunes library for access to personal tracks in the Spotify app.
  • Although the Wired review suggests “Spotify is just cloud music done right,” it also points out some minor flaws: “Spotify’s recommendation engine, and its radio selections (supposedly Pandora-like auto-playlists) are pitiful. And there is also no sign of an iPad native version, over a year after the tablet’s launch.”

Facebook Media Plans Include Spotify and Others

  • Facebook is working with Spotify and others to integrate new music services and applications.
  • The social networking giant has expanded its position in significant Internet sectors – including retail, news and games – and is now getting serious about music and other media.
  • At the recent Cable Show in Chicago, Comcast CEO Brian Roberts predicted that cloud-based guides and interfaces will be paramount to television’s future. Roberts described an integration with Facebook that can make TV more social with recommendations and interaction with “friends.”
  • Spotify already allows users to share info about songs with Facebook friends, but the next level of integration is expected to be much deeper. Additionally, Facebook has reportedly been reaching out to other online music services.
  • Facebook’s Music Dashboard will show songs of friends, recommended songs and “happenings” in your social and music areas.
  • This opens new potential for Facebook to become a social e-commerce business.

Is Facebook Poised to Become THE Social Entertainment Operating System?

It seems we cannot escape ongoing speculation in recent weeks surrounding the potential impact of a collaboration between social networking giant Facebook and European music service Spotify. Whether you subscribe to the opinion that such a partnership will change the face of music discovery, distribution and consumption — or you agree with Peter Kafka who wrote in WSJ’s All Things D that the deal would simply “be a nice feature for Facebook and a nice promotional outlet for Spotify” that would merely provide “limited amount of free music, and the option to upgrade to a paid subscription” — the bigger issue involves the direction of online social media and Facebook’s ultimate role.

If the Spotify deal serves as a stepping stone for Facebook’s involvement with other forms of media — music, movies, games, news, video, etc. — the social networking site may be on its way to serving as much more than a way for “friends” to share information and photos. It could become a powerful online hub for media distribution.

When Facebook’s Mark Zuckerberg took the stage at the e-G8 Forum in Paris last week he explained (again) that he has no interest in becoming the CEO of an entertainment company. However, increased integration between Facebook and entertainment media is clearly in Zuckerberg’s sites.

In March, Warner Bros. became the first Hollywood studio to offer movie rentals directly on Facebook, starting with The Dark Knight; Netflix has reportedly been discussing with Facebook the possibility of integrating social networking tools; Facebook began allowing third-party developers to offer games on its site four years ago (since then, social-gaming companies like Zynga have become among the largest in the industry); and now the deal with Spotify may help extend media integration. ZD Net reports that four months ago, “Spotify signed an agreement with Sony Music Entertainment, and three months ago, it struck a deal with EMI Music. The company thus has two of the four major music labels; the other two are Universal Music Group, the world’s biggest label, and Warner Music Group.” The Spotify/Facebook deal could lead to competition with streaming and cloud-based music services.

As the trend of electronically sharing thoughts and interests continues to grow amongst consumers of all ages, it makes sense that the leading social networking site would be poised for successful integration with the media people regularly discuss. In doing so, Facebook (which currently has nearly 700 million users) may become the ubiquitous entertainment layer of the Internet. At the very least, it may help serve as an EPG of sorts for media.

“Listening to music is something people do with their friends,” Zuckerberg said in France. “Movies, TV, news, books — those types of things are things I think people just naturally do with their friends. I hope we can play a part in enabling those new companies to get built, and companies that are out there producing this great content to become more social.”

Related Wall Street Journal article: “Chill Out! Spotify on Facebook Is Cool, Not a Game Changer” (5/25/11)

Related GigaOM article: “Amidst Spotify Rumors, Facebook CEO Talks Music and Media” (5/25/11)

Related Bloomberg article: “Facebook’s Zuckerberg Says Music, TV Are Social Frontiers” (5/25/11)

Related ZD Net article: “Rumor: Facebook is partnering with Spotify” (5/25/11)

Related TechCrunch article (including Spotify slides): “Behind The Scenes: Making Spotify More Convenient Than Piracy” (5/30/11)

Related Forbes article: “Facebook To Launch Music Service With Spotify” (5/25/11)

Related New York Times article: “Facebook Is Developing Ways to Share Media” (5/26/11)

Related ETCentric story: “Spotify Launches Music Download Store and iPod Syncing” (5/13/11)

DAR.fm is a Free (for now) Digital Audio Recorder for Radio

There’s been a lot of music news reported in recent weeks, from a collaboration between Spotify and Facebook to compelling new discovery apps including Radio Spotter from mSpot Music to emerging cloud-based services from the likes of Google, Amazon and Apple. We’ve also been watching the direction of services such as Pandora, Slacker, Rhapsody and Napster as digital music distribution continues to evolve. However, a new online service created by MP3.com founder Michael Robertson may change the way we consume radio.

Robertson’s DAR.fm (currently in beta) is a digital audio recorder for radio content, what David Pogue describes in his New York Times column as “free TiVo for radio.” According to the site’s FAQ page: “DAR.fm is a personal recorder which records radio stations and shows to be played back at the convenience of the listener. Similar to how a DVR (digital video recorder) works with television DAR is a DVR for your radio.”

Currently, there is no charge for the basic service, but that may change in the future based on potential restrictions or data storage space (advertising on the site is also reportedly in the works). Pogue explains that each user starts with 2GB, and completing an application at MP3Tunes.com provides a free upgrade to 10GB. According to the site: “DAR.fm gives you 2 GBs of storage to record your content. This is enough to store approximately 100 hours of material. However, it depends on whether the material you’re recording is talk or music — you may be able to store more or less. If you need more space you can purchase a Premium account with 20, 50, 100, or 200 GB of additional storage.”

What makes this service compelling, however, is that users can listen to an unlimited range of radio content anywhere, anytime: via computer, phone apps, Wi-Fi-connected radios, even the Roku set-top TV box. Listening to recordings from a phone is made possible by free apps based on the open music API (Airband for the iPhone, MP3tunes for Android, Locker Player for Windows Phone 7, and Music in Your Palm for WebOS). Users can even download individual songs that have been captured.

“It’s crazy cool, like a hybrid of iTunes and satellite radio,” writes Pogue.

If DAR.fm catches on, will it compete with cloud-based and subscription music services? If it works as flawlessly as Pogue describes, it may have a strong chance, although MP3Tunes has yet to share the limelight with other more notable cloud services. Pogue writes: “The person who created DAR.fm also runs a company called MP3Tunes.com. It’s an online storage locker for your music files, so that you can play them from any computer or phone, anywhere you go. (If this sounds familiar, it’s because Amazon introduced a nearly identical service last month, called Amazon Cloud Player. Google just opened a ‘cloud music locker’ service, too. Needless to say, the headlines about this ‘new’ kind of music service drives the MP3Tunes guy crazy; his site has been in operation for four years.)”

Related Grace Digital Audio press release: “Grace Digital DAR.fm Audio Recorder for Internet Radio Debuts” (5/19/11)

Related Radio World article: “DAR.fm Hopes to Shift the Paradigm” (4/15/11)

Related Radio World article (with video): “DAR.fm, Grace Radio Aim at a ‘Talk TiVo'” (5/18/11)

Related PC Mag article: “MSpot Adds ‘Radio’ Music Discovery to Online Music Locker: Hands On” (5/26/11)

Related TechCrunch article (from Disrupt conference): “Rexly’s Social Music Discovery App Is What Ping Should Have Been” (5/23/11)

Spotify Launches Music Download Store and iPod Syncing

A new app from Swedish start-up Spotify may attempt to take on Apple’s iTunes. The European online music service recently announced a new MP3 download store in addition to the ability to sync music on iPods and related devices.

According to a report last week on PCMag.com: “Spotify features include the ability to: search, browse, and play millions of tracks; stream over Wi-Fi or 2.5/3G; access offline playlists; on-the-fly sync; a what’s new tab; wireless sync of your local files to your phone; and the ability to tag favorites into a special list. One of the most frequent requests, however, was the abilty to sync that music to Apple’s iPod, something Spotify said is now a reality. Just connect an iPod to your computer via USB and it will appear in the ‘devices’ section of the Spotify sidebar. You can then sync MP3s in your Spotify playlists to the iPod.”

Spotify has 13 million tracks available and more than 1 million subscribers. It features a free, ad-supported option and a premium service for unlimited access. The company says that its iPhone and Android app can now be used by its free service customers.

Spotify is doing well in Europe, but has yet to launch in the U.S. It has inked deals with EMI and Sony for U.S. service and if it can enter into an agreement with Universal Music Group and Warner Music it may become a serious competitor for the likes of Rhapsody and iTunes.

Since Apple has a track record of updating software to prevent third-party iPod syncing, it will be interesting to see how it responds to Spotify’s efforts.

Updated ETCentric post (and Facebook-Spotify news): “Is Facebook Poised to become THE Social Entertainment Operating System?” (5/31/11)

Related Bloomberg Businessweek article: “Here’s Spotify’s Master Plan: Tackle iTunes Head On” (5/5/11)

Related CNET article: “Spotify cozies up to iPod, takes aim at iTunes” (5/4/11)