Online Evolution in the SaaS Market
8 Jul 2015
Last week saw the launch of the exciting new Apple service, Apple Music, an online music-streaming library service to rival the likes of Spotify and Deezer. Users can sign up to a three month free trial followed – if they choose to continue – by a relatively reasonable monthly subscription to the service.
There was some controversy and hype surrounding the launch – Radio 1’s popular DJ Zane Lowe abandoning ship to launch the new Beats 1 Apple radio station. Then Taylor Swift publically questioned the morals and motives behind the lack of royalties musicians would receive throughout the trial period.
Despite this, it does seem that once again, Apple should be commended for bringing out yet another service, which like iTunes, aims to create more money for an industry well in need of it.
Over the last few decades, the growth and accessibility of the Internet has meant that music is now so easily downloadable for free (illegally), this has the industry in genuine concern about their revenue stream. Add to that the fact that consumers seem happy enough to listen to music on Internet based channels like Youtube, and you can see why they’re looking for a way to get back some of this business.
Looking to the Past for Inspiration
Back in 1999, it is said that the global recorded music industry brought in $26.6bn, but in 2007 this had reduced to $20bn and last year it only managed to bring in $15bn1.
There are some, of course, who have started looking at other ways to create revenue within the music industry, looking to the past for inspiration…back to vinyl.
Some people seem to be less interested in producing CDs, and are instead going back to the raw roots of music production with the sales of vinyl records on the rise. Artists like Jack White are keen to create a world in which records still have a role to play. White commented that ‘it is so gorgeous to see people line up around the block to buy a vinyl record’2. He created quite a stir on last year’s Record Store Day when he took up the challenge to create the world’s fastest record. The single ‘Lazeretto’ (which in my opinion is excellent by the way) was recorded and pressed in less than four hours at his recording studio Third Man Records; this was then marketing to the nines, with much online coverage. This event marked both a triumph for the creators and fans, but also a real sign of how modern day technology mixed with ‘old school’ ingenuity results in a really exciting achievement.
Innovation in the Online Market
Arguably the Internet is the main reason why the music industry is in decline, but, without the advertising, e-commerce, and social sharing tools the Internet brings, such innovation like the work Jack White is doing, would not be as easily communicated and made available to the masses. So there are definitely some benefits to the online expansive communication networks the music industry can (and do) utilise.
These communication networks and the rise of music streaming to combat illegal downloads shows how the music industry is using the technology of the Internet to explore new avenues. Like my post a few weeks ago, I am back to the point that by fusing creativity with technology there is so much we can bring to the evolving world of Software as a Service (SaaS).
Where else can we see this online innovation in other SaaS providers?
What about Spotify, Netflix, Amazon, and Sky?
All of these big players are creating alternative ways for their users to access music, film, data, and TV online. You could say that the Internet has made the way we listen to and watch entertainment so much more accessible, affordable, and sociable.
Fully Flexible, Cloud Based, SaaS…
But has this forward thinking, driven by the Internet, hit the CRM SaaS industry?
Cloud hosted CRM has taken the world by storm since Salesforce released Force.com back in 20073. From then onwards, companies no longer had the need for the software to be physically installed in their offices. Instead, the cloud – an Internet based storage facility – has enabled users to access their data from anywhere at any time as long as they are online.
OpenCRM offers our users monthly subscriptions to a fully flexible, cloud based, SaaS, which enables productivity tenfold. A system can be provisioned, ready for a company, within 45 minutes!
There is no denying the effect the Internet is having on the SaaS industry and the sub-industries within, be they for business or pleasure. Yes, there have been some negative results from what the Internet has brought to some industries that have occurred due to the unpredictable nature of the beast. But with a little bit of innovation and intelligence it is fair to say that there is so much more we can do to develop cloud based Software as a Service for the masses in a way that will improve productivity, efficiency, and the quality of our consumer’s lives.
Quotes and Information Sources:
1. Johnston, C (2015). Apple aims for bigger bite of music market. BBC News, retrieved 02/07/2015, from http://www.bbc.co.uk/news/business-33260235
2. Morris, A (2012) Jack White Means Business. GQ Magazine, retrieved 02/07/2015, from http://www.gq-magazine.co.uk/entertainment/articles/2012-01/11/jack-white-music-business
3. Unknown (2013). A Brief History of Customer Relationship Management. CRM Switch. Retrieved 02/07/2015, from http://www.crmswitch.com/crm-industry/crm-industry-history/
