FreeCast Resolves Online Music Monetization Puzzle
Free-to-listen ad-supported model makes the most sense for streaming music says CEO William Mobley.
The music industry’s long struggle to adapt to the digital age continues, as Google’s YouTube becomes the latest company to take a crack at the challenge of getting consumers to pay for music, with a new $10 a month bundle consisting of an ad-free YouTube experience, music videos, and audio-only streaming. Meanwhile FreeCast has taken a different approach: sticking with the legacy ad-supported model, and now indicating that the company is willing to work with the music companies to help them monetize their existing online content more effectively.
FreeCast CEO William Mobley explained why ad-supported streaming makes so much sense for the music industry. “Ad-supported music has always been extremely popular, you probably listen to the radio every single day at some point. Meanwhile subscription-based services have struggled with slow adoption, despite the benefits of convenience and expanded capabilities. YouTube’s new offering faces an uphill battle already fought by others: GrooveShark is out of business, Spotify loses money, now Pandora is trying to bring in video… With our service, Rabbit TV, users pay $10 a year for a complete entertainment experience, which includes our extensive guide to all the ad-supported music videos you can watch online, over 50,000 free online radio stations, and the same ad-free subscription options you’re getting elsewhere.”
With over 4 million users, FreeCast’s Rabbit TV has often demonstrated its ability to bring eyeballs to content, which is the key to monetization. Now the company is suggesting that it can do the same for the music industry, delivering eyes and ears to content and perhaps more importantly, the content providers’ ads. Because FreeCast allows those providers to keep 100% of their ad revenues, the television industry has embraced the online media aggregator. Already boasting hundreds of music video channels in the style of the original MTV, a deal with the music companies will quickly start paying dividends.
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