14 DAY TRIAL // Online music services are hardly new. In one way, the ill-fated Napster was the first online property to shake up the music industry's status quo and it certainly wasn't the last. A big number of music-streaming sites have popped up in recent years, most realizing that it's only a matter of time until the 'cloud' becomes the main way people will consume music. What most hadn't anticipated, though, was the established music industry's reluctance to anything that might potentially hurt its very lucrative business model, which doesn't really have to do with music but very much with selling plastic discs at a huge markup.
Many startups have fluttered, the recent story of Imeem is a clear reminder that it's a tough business to be in, tougher than it ought to be maybe. Yet, despite the fact that most of the existing services aren't generating any real revenue and the ones that are aren't exactly drowned by the profits, with the sole exception of Pandora perhaps, new online music services and especially streaming services are popping up like never before.
Spotify has caused a sensation in Europe and, despite not making as much money as it would like, is very popular on the old continent. And it's about to make its biggest move yet, with the upcoming launch in the US. Slated for the end of 2009, it has been pushed back to 2010 but it's coming nonetheless. The only unknown at this point is whether it will be streaming the music for free or if it will offer only a subscription option.
Another player that may prove a serious contender has just launched in the US, MOG All Access, and the initial opinions seem to be very positive. Another possibility is the upcoming Rdio from serial entrepreneurs Niklas Zennstrom and Janus Friis, creators of Kazaa, Skype and a number of other ventures.
From the old guard, Last.fm is growing at a healthy pace spurred by the latest partnerships with the likes of Microsoft and the aforementioned Pandora is also looking good. But the biggest sign that 2010 may finally be the year when these services take off is the fact that the major music labels seem to be warming up, if only a little, to the whole concept.