Wednesday, April 15, 2015

A Bank Starts Its Own Streaming Service, And It Might Make Sense

Streaming music services image
What do you think your reaction would be if I told you that a major banking institution just started its own music streaming service? If you knew anything about the music business, chances are you'd be incredulous. With all the existing competition in the marketplace and some deep pocketed players about to re-enter the sector in a big way, at first look this move seems to be somewhat misguided, especially for a major bank.

There may be one place where this action defies common wisdom however, and that's in Brazil.

Billboard recently reported that Brazilian banking giant Banco Bradesco (#63 on the Forbes Global 2000) entered into a partnership with Universal Music Group to create a new streaming music service exclusively for its credit card holders.

Now, read that again and tell me what your reaction is. I bet at least part of it is, "Why?"

On the surface this seems like a crazy move, but that's because we automatically think of the music industry of the United States as a reference point. The reality is that Brazil is a different animal completely.

According to the IFPI, Brazil is the ninth largest music market with $228 million in total revenue last year. It's also still a young market when it comes to streaming, even though most of the major players have launched there. Read more on Forbes.

You should follow me on Forbes for some insights on the new music business, Twitter and Facebook for daily news and updates on production and the music business.

No comments:


Related Posts Plugin for WordPress, Blogger...