Quantcast
According to a report from International Data Corporation (IDC)—and with a name like that, they must know from data—the online music market will reach $1.6 billion in revenues by 2005.
DIGITAL DOLLARS DOWN THE LINE?
Surprise: Online Ads, Online Music Services, Video Games Looking Up
As Turkey Day approaches, the thought preoccupying most people is what a turkey both the business and the whole recession-ridden, post-9/11 world are turning out to be. The dot-com revolution was the biggest practical joke ever played on gullible investors and careerists, and about its only big successes (besides porn)—the MP3 format and file sharing—are biting the music industry in the booty right along with rampant CD-burning and large-scale piracy.

But wait—there are some shreds of good news out there, or at least predictions of good news. In addition to recent economic data indicating that consumer confidence may not be as shot as everyone has been thinking, one potential uplift to the nation's party plan includes an expectation among online publishers and advertisers that a new form of Internet advertising will take hold and play a large part in bringing some money back to the sector.

That new form of advertising, called "surround sessions," according to a report on CNET.com, takes the approach of presenting a website visitor separate but related ads on the various site pages he or she opens for the duration of the visit, or "session." The new format would move away from the pay-per-click rate scheme based on impressions, and toward a time-based rate structure, making each ad package more like broadcast advertising, which is paid for by the minute.

The theory is that surround packages will be more appealing to advertisers used to broadcast measurements, such as "reach" and "frequency," and will draw them back to the Internet, where ad sales have been relatively flat this year after several years of triple-digit increases.

Another bit of optimism being reported involves the emerging market for Music Service Providers, a term first used by MP3.com in its wild early days as an online revolutionary. According to a report from International Data Corporation (IDC)—and with a name like that, they must know from data—the online music market will reach $1.6 billion in revenues by 2005.

The report contends that most label-backed and independent MSPs will have subscription-based business models and will operate in partnership with major portals and Internet service providers. It cautions, however, that these services will need to offer at least as much music as a traditional record store in order to attract consumers, and that free music services will continue to limit the market at least through 2005. All in all though, a $1.6 billion market is better than no market at all.

And if the above isn't enough to turn that frown upside-down, consider this: According to a report by NPDFunworld, a leading video-game marketing information firm (yes, we really said "NPDFunworld"), 2001 could end up a record year for video game hardware and software sales. Sales of game-related stuff were up 33%, in dollar terms, from January to September, compared to the same period last year. And with the fourth quarter typically accounting for 50% of annual sales, and two new game systems hitting stores, the likelihood of a record year is even greater.

While this doesn't have a direct positive impact on the music business and could even be seen as diverting consumer dollars away from music, the increased opportunities for licensing and promoting music on games can't be considered a bad thing.

There you have it. Three news-like items that aren't total bummers. Be thankful. Thank you.

ANOTHER BILLIE BANGER? (UPDATE)
Are you free Wednesday afternoon? (11/12a)
BIEBER BY CHRISTMAS?
How's that for a tease, Bieber Nation? (11/12a)
NEAR TRUTHS: MEET
THE NEW BOSSES
Not the same as the old bosses (11/12a)
CMA CENTERPIECE
CARRIE UNDERWOOD
This sure feels like her moment. (11/12a)
WHO'S GETTING ZERVAS?
It's down to two bidders. (11/12a)
THE GRAMMY NOMINATIONS
They'll soon be here, and then we can start obsessing about who'll win.
U.K. SPECIAL
Forget Brexit--it's our yearly survey of doings in Blighty. And if you still can't forget Brexit, try drinking.
ZERVAS STATION
Who's going to land the hottest unsigned property in music?
WEED!
That's what Hollywood smells like. Seriously. 24/7.
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)