Tuesday, October 22, 2013

Twitter To Kill The Music App Nobody Knew It Had

Twitter #Music Dead image
News is now leaking that Twitter is on the verge of killing its #Music app, as the company revamps its music strategy in preparation for its IPO. Some of you reading this are probably saying to yourselves, “I didn’t even know Twitter had a music app!”, and that’s the whole point. The company didn’t do much to promote it, which leads to some interesting speculation.

#Music was launched in April and actually had a reasonable first week or so, but usage dropped like a rock after that, getting no traction from the early adopters and no buzz to bring in other users as a result. The app was based upon the infrastructure of We Are Hunted, a company that Twitter acquired that specialized in new music discovery, which was to be the trademark of #Music. But sometimes things don’t work out as planned, as Twitter made two strategic mistakes with the app.

First of all was timing. Introducing #Music in April might have seemed like a good idea at the time, but it turned out to be a very flawed decision. While not knowing exactly what the corporate thinking was, it would seem that the plan was to get some action in music to spike their IPO a little (which was still unannounced at the time). By having a successful music product, the assumption might have been that it could’ve went to market with that additional feather in its tail and goosed its opening share price as a result. But would that really have mattered? I’ve read valuations of anywhere between $10 to 20 billion that are expected once the IPO is launched, so would a successful #Music really have added much more? 

In retrospect it would’ve been better to wait until after the IPO to launch a music app, as it could’ve ridden on the coattails of all the publicity already being generated. Plus, there would’ve been extra cash to invest in the project to flesh it out more if needed. Read more on Forbes.

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