Well I said at teh start of the year that the European digital music was ripe for consolidation….
“Supply massively exceeds demand and revenue opportunities are limited…all the evidence points to significant service consolidation [in the European digital music market]”
Well now the process is starting: two years after launch, MyCokeMusic.com has declared that it is closing down in the UK, Ireland, Italy, Switzerland, Austria and Greece. Considering that MyCokeMusic was always primarily a branding tool for Coke this with drawl reflects one or both of:
1 – they must have really been losing money
2 – Apple’s domination of the digital music market has hindered the positive branding effects of the service
The bottom line is that there are too many services chasing too little consumer spending with prohibitively small profit margins.
So six services down….which of the remaining 194 will be next?