Samsung
shopping for software to challenge Apple, Google, Amazon in music market
In an effort to contest media and tech
giants alike (Apple, Amazon, Google), Samsung is breaking borders in their
traditional business model of only manufacturing technology goods and is now
looking to expand their business endeavors into mobile device programs. Not
just any mobile program, Samsung wants to develop a music distribution app for
its mobile products in hopes of continuing to drive sales. Samsung claims that
their over the air music store, Music Hub, will be revolutionary in that it
will combine their mobile products like Samsung Galaxy models with one of the
largest portfolios of music: 19 million songs. However, Samsung’s Music Hub
will still be 8 million songs short of Apple’s iTunes Store and Music Hub will
not be the first in-house, built in music store on a mobile device other than
Apple’s iPhone (Android has already done so).
Samsung’s highly
regarded and expensive products will help boost customer’s support behind the
Music Hub app. Interestingly enough, Samsung is actually not making the app
themselves, where instead they are researching for programmers, developers and
innovative minds alike to create and expand Music Hub into many integrated
platforms and products that Samsung offers. This threat of integration into all
Samsung products alike will surely increase the value in Samsung products,
drive sales and increase the utility in Samsung products alike. An executive at
Samsung, Kang Tae-jin explains that “[Samsung]
wants to grow the Music Hub to rank in the world’s
top four services within three years in both revenue and subscriber numbers” (Miyoung Kim). Despite being a dominant force
in tech products, Samsung is setting the bar very high for Music Hub and it
will be interesting to see how they plan to integrate all Samsung products to
push the development and appeal of Music Hub to all Samsung customers. Although
the article does not delve into the specifications of Music Hub in terms of its
perks, pricing of content (if not free), will there be advertisements, will
Samsung buyout the publishing rights royalties to avoid their customers from
paying for content like Nokia did, or will Music Hub take a completely original
approach to the app? I am very interested to see how this app unfolds and
tracking its development in how it is going to affect the marketplace for
digital music and the media giants of the industry.
- Miyoung Kim, Reuters. "Samsung Shopping for Software to Challenge Apple, Google, Amazon in Music market." Financial Post. N.p., 27 Sept. 2012. Web. 30 Sept. 2012. <http://business.financialpost.com/2012/09/27/samsung-shopping-for-software-to-challenge-apple-google-amazon-in-music-market/>.
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