Tag Archives: Virgin

Guvera Gets Traction With Advertisers

Guvera, the on-demand service that recently launched here in the US, has gotten some early traction with big national advertisers who like the streaming services idea of building streaming channels of music around a brand.

According to a report last week, advertisers in the US include Victoria’s Secret, Microsoft, Sprint, Mastercard, Geico and H&M, all of whom have dedicated channels. Guvera Founder Claes Loberg explains that listeners are “brand loyal, taking the time to select a brand and interact with the individual channels to download their free music.” They are logging long periods of sponsor engagement double digit click through rates as well.

Guvera hails from Australia, started streaming in the US in March and is still working out licensing deals with some of the record companies. Their song library currently includes EMI Music Group’s labels; EMI, Virgin, Capitol Music, Bluenote, Mute and Domino. The website informs us that they’re hoping to add Universal Music Group, IODA and several independent labels in June and July. They are reporting 75,000 users across Australia and the US, with roughly 40,000 coming from Down Under.  About 3-5,000 are joining weekly.

I like the approach this station is taking. They set out to distinguish their ad model from the beginning, emphasizing that they weren’t selling impressions but were focused on brand engagement by working with brands to create channel sponsorships. Apparently, some big brands think it sounds like a good idea as well.

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Study: Streaming Up, Filesharing Down in UK

earbudsTeens are streaming more music and filesharing less, according to a newly released study by The Leading Question/Music Ally of UK music fans. New research shows that illegal filesharing is being replaced by legal streaming activity as more and more teens are streaming and sharing playlists online.

What’s more, this trend to increased streaming is leading to increased songs being purchased. There are now more UK music fans regularly buying single track downloads(19%) than file-sharing single tracks (17%) each month according to the new study.

The results of this report suggest that – at least in the UK – licensed streaming services that provide easy access to new music are replacing filesharing activity among teens. The best way to beat piracy is to create great new licensed services that are easier and more fun to use – like streaming services such as Spotify (not currently available to US listeners, but coming later this year) or services that offer unlimited mP3 downloads and streams, such as a new service recently announced by Virgin.

This is news that should be of interest to online stations and music labels here in the US as well. As mobile platforms for Internet radio expand, more and more teens are listening to Internet radio. Sites that enable music sampling and sharing are particularly appealing as they mimic the kind of behavior that drove listeners to share music illegally. What’s more, the study also shows that once they share and sample music on a stream, they’re likely to purchase it. That’s a win win for streaming services and record companies.

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