Twitter is again attempting to align itself to the music industry. Just recently, Twitter announced that they will be pulling their #Music app. April 18 will see the termination of the app and it will no longer be usable. While reviewers note that the #Music app wasn’t a bad idea, it simply was neither mainstreamed nor particularly useful in keeping consumers on Twitter. The #Music app was essentially just a middleman that pointed users to other services. After meeting with Beats Music this week in San Francisco, it appears that Twitter will again dance around the idea of a new music strategy and the possibility of a new partnership.
In addition to meeting with Beats Music, Twitter is also looking toward a partnership with SoundCloud, another music-sharing service. In fact, Twitter is also working with the music video company Vevo and Sony Music Entertainment with an eye toward the possibility of bringing embeddable video clips to tweets. Establishing a presence in music, which is currently a $16.5 billion industry, would allow Twitter to provide a more solid base to have users spend time on the service. And with so many of Twitter’s users being musically inclined, reportedly a full 7 out of the top ten tweeters are musicians, it appears intuitive that the service would want to capitalize on that industry.
Twitter has therefore decided to dance with the idea of a way to bring a new music experience and strategy to its over 645 billion registered users. With the average number of tweets each day exceeding 58 million, the potential for showcasing some new musical groups or short videos is vast. With investors’ increasing concerns that the service’s growth has reached its potential, Twitter is on the lookout for ways to not only retain its current users but also for ways to bring in new ones.
In addition to the upgraded user experience that an embedded music clip would provide, the clips themselves would likely come with advertisements which would provide additional revenue to the social network service. Last year when Twitter went public the stock was $26 per share. This rose to a high of $74.73 but has since spiraled back down to a middle price of about $44. Most of Twitter’s revenue comes from advertising and so additional advertisements in the embedded videos would likely shore up any flagging areas.
The new music strategy that the service is considering has not yet been spelled out to the public. Efforts to obtain statements from the company have currently met with silence so the possibilities remain speculative. Regardless, experts formulate the following ideas and understandings. Twitter is looking to include some new music sources and a strategy to enhance the experience of the end-user, especially those musically inclined people who like to sing, dance, and explore different and newly released entertainment availabilities. With talks between Twitter and Sony Music Entertainment, Vevo, Beats Music, and SoundCloud, the possibilities of what might eventually take place on the social network, musically speaking, are innumerable. The ending of Twitter’s #Music app on April 18 may well open the door for another music strategy for the service.
By Dee Mueller
on twitter @TuesdayDG