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RAIN 6/28: PWC urges media to adapt biz models to "growing dominance" of Net, mobile among consumers

Posted on: 06/28/2010


A new forecast from PricewaterhouseCoopers predicts that entertainment and media companies will spend more on digital in the coming years to adapt to consumers’ growing preference for online and mobile platforms. Companies must embrace digital “not as a competitor…but as a complement.”

Consumer behavior is changing in three “themes,” the report argues. The first is the growth of Internet-connected mobile devices. As a result, consumers are coming to expect ubiquity — they want to access content anytime, anywhere. The report predicts over 96 million will have access to mobile Internet by 2014.

Next is the “growing dominance” of the Internet experience, as traditional media — TV, newspapers, music — are consumed online. In particular, people are using “streaming personalized music services such as Pandora in preference to buying physical CDs or even digital downloads.”

Finally, consumers will be increasingly ready to pay for online content, as long as they get convenient, flexible and unique content in exchange.

You can read more from PricewaterhouseCoopers here.


Hewlett-Packard has bought online music service Melodeo, which offers cloud-based music features that resemble Internet radio. Though terms of the sale were not disclosed, TechCrunch claims HP paid $30 million. HP also bought Palm earlier this year for $1.2 billion (RAIN coverage here).

Melodeo’s nuTsie service (an anagram of iTunes) matches a user’s iTunes library to its own cloud collection. Users can then stream matching tracks from the cloud or through mobile apps for iPhones, Android devices and Blackberries. “It’s more like Internet radio based on each user’s personal iTunes library,” writes CNet’s Matt Rosoff, as users don’t actually upload music. More than that, nuTsie offers a “Top 100s Radio” service, pulling information from iTunes for each year back to 1947. Melodeo was working on an update to allow users to upload their entire iTunes library to nuTsie servers. You can find previous RAIN coverage of nuTsie here.

But what exactly is HP planning to do with Melodeo and its cloud-based music service nuTsie? “My guess: it’s going to build a music streaming service for the webOS mobile device platform, which HP gained in its acquisition of Palm earlier this year,” predicts Rosoff (here).


Ludwig Enterprises has debuted a technology to broadcast digital audio signals using digital television signals, according to AllAccess. The signals would be received by Ludwig’s radio receiver, dubbed “The One Radio.” The technology is reportedly capable of broadcasting 50 channels of audio “into nearly every market in the country.” Find Ludwig’s site here and AllAccess’ coverage here.

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