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New Frontiers to Conquer for Social Networks

Itunes has been the leader in music applications since its birth. It requires you to upload your music and store it on a hard drive of some sort. You can also buy a song and get it downloaded straight to your Itunes library for $0.99. This method was dominant until websites allowed streaming of huge internet libraries for free. Pandora Radio seemed to be one of the first popular website that streamed music to people for free. This changed the electronic music market drastically since a humongous library of songs was accessible over the internet and listening to the songs was free. Other applications such as Spotify, Amazon Cloud Drive, Google Music, and even Itunes have created applications that allow free streaming of music. These sites created a new market in the music industry by making money through advertisements, and signing contracts with record companies so that they can upload their songs onto their websites and allow people to stream it for free. Many social networks are joining this new market by integrating applications for these music websites. Facebook and Google+ are creating applications for some of these websites to be used on their network. Facebook now has a partnership with Spotify, Rdio, and mog which allows your friends on Facebook to share and check out the songs that they are listening too.
The method for making the most revenue has changed since the creation of music streaming websites. The most money is not made by selling the most songs online anymore, but by having the most visitors go to your site. This new market and type of revenue was similar to that discussed in Chapter 15. Advertising through the web, clickthrough rates, and revenues per click are how these record deals will decided who to sign with. The goal is to get the most users to the site so that advertisers will pay for advertisements and record companies will sign with the websites and allow them to stream their songs. The integration of social networks and music applications is creating even more competition and revenue by increasing the click through rates and getting more advertisers to pay for advertisements. Integrating social networks and music applications is drastically increasing the amount of click through rates and bidding by advertisers since social networks, such as Facebook, is one of the most visited sites. Social Networks are dominating the web and are incorporating everything that one would need into their websites. At the rate we are going, it seems that social networks will eventually incorporate everything that one needs into one website. Who knows what next frontier they will try to conquer.


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