Two Steps Forward, One Step Back: Ad Supported Music Services

Ad-Supported music service Qtrax have announced the addition of Sony-BMG to their burgeoning list of content partners. However the service is unlikely to launch until September due to deals which are still missing. This is significant because of the reportedly sizeable advances that the Ad Supported services are having to pay labels. So time spent in ‘sleep mode’ is very costly, with significant implications for the financial viability of such services.

All of which is a real shame as Ad Supported services have massive potential to tap into the high consumption / low spending young digital music fans who are proving so difficult to pull into the legitimate downloading fold. Such services are undoubtedly a big gamble, but the music market conditions are getting harsh enough to make a case for even the most conservative of companies pursuing more radical avenues.

Jupiter has recently written a report on this topic: Jupiter clients click here to read the report.