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A REASONED DEFENSE OF FREEMIUM FROM, YUP, ROB WELLS

UMG digital guru turned free agent Rob Wells sat down with Music Business Worldwide’s Tim Ingham for his first interview since his abrupt exit from Universal in February. The conversation begins with Wells’ detailed explanation of why he believes the unlimited-free-streaming model is a potential goldmine.

“All of the debate and positioning that’s been put forward over the last 12-18 months has been about how ‘unsustainable’ freemium is,” Wells tells Ingham. “Ultimately, you’ve got to read between the lines of these comments. What people are really saying is, ‘We’re not earning enough money.’”

Wells then explains where the money is hiding: “I believe there will come a point where brands and agencies that are currently spending their money on traditional media will shift that focus and start spending that money on digital media. As people cut the cord of broadcast TV and shift from reading newspapers to digital publications, the money will move with them. The advertising business is a monster compared to all of the other content businesses.”

An interesting read elucidating a viewpoint not often encountered these days.

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