Daily Archives: September 28th, 2011

Facebook Music’s Impact On Streaming Could Be Really Big

Facebook‘s news that it will integrate a bunch of third party streaming services into its platform has a lot of people buzzing in anticipation. Billboard said the f8 conference last week where it was announced “should be remembered as streaming services’ coming out party.” The exposure that streaming music will gain through Facebook’s 800 million users is huge.

Facebook’s bff in this new streaming music scheme is Spotify, and they stand to gain the most. In exchange for bff status, Spotify has begun to force users to have a facebook account, and have made it a default that info about what you are listening to appears in your facebook timeline – like Jennifer Lane is listening to Adele’s Rolling In The Deep

Other services that will be included in the new facebook offering are MOG, rdio, Rhapsody, turntable, tunein, iheartradio, Slacker and others. MOG and rdio had been subscription based services, both services rolled out new, free and ad based offerings last week in anticipation of their new deal with facebook.

Pandora is noticeably missing from the list of services, CBSRadio’s Last.fm is as well. When I asked why they aren’t a part of the newly announced integration, Pandora told me:

We continue to be close partners with Facebook; in fact the new Pandora.com that launched this week features the deepest, most compelling Facebook integrations we’ve ever offered. Facebook kept us informed at every step of their development of their open music platform – that dialogue continues. For today, we’re glad that our users can easily use Pandora.com to both follow and share music discoveries with Facebook friends on Facebook, as well as on Pandora.com.

Meanwhile, Spotify is already optimistic about the ad revenues they’ll enjoy as a result of this new partnership. Spotify users hear an audio ad every three songs, and that will be the case through the facebook application as well. According to Spotify chief advertising officer Jeff Levick advertisers like Coca-Cola, Motorola, Reebok, and Chevrolet will benefit from the additional exposure that facebook will bring to Spotify. The service sells audio and display ads and targets ads based on gender, age, location, and preferred music genre. Spotify has reportedly gained 1.4 million users in the two and a half months it has been in the US.

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