Streaming Media’s Balancing Act: Content vs. Ads

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Jan. 8 (Bloomberg) -- Adam Klein, CEO at Media Leader, discusses targeted advertising by Pandora and other music streaming services on Bloomberg Television’s “Bloomberg Surveillance.”

Of choices for consumers.

What do you observe we are doing with these radio products?

The one thing you heard from the cfo of pandora, he is saying we have a way to collect huge amounts of consumer data and then leverage the data to focus on you, to focus ads on you -- which i hate personally, but that's ok.

While i don't see the sustainability of the pandora business model, to be honest, that conversation i think he is absolutely right about.

However, google radio, apple radio, spotify, they've got just the same amount of data.

They can't use the data to get the music selection right for a lot of the users, which is what the major complaint is for pandora.

What is the believe -- you have the data to make advertisers target customers?

Better?

I think that is the weakness in the argument.

Because their selection of music is very bland, very ordinary, and it is not very personalized, which is what people are looking for.

Adam, i wonder, music versus news.

The customer's willingness to tolerate ads depend on the type of content they are digesting?

It depends hugely on who the customers are.

On facebook, there is huge push back by people saying, wait a second, i did not come here to get ads but i came here to participate in a social experiment -- experience.

So don't suddenly use the data you got me to manipulate me.

A huge pushback.

On the other hand, if you go onto spotify and you take the free service, you expect there to be ads.

That is part of the deal going in.

So, it somewhat depends on what deal you cut with consumers when you start.

Because that is the relationship they develop with you and the brand.

You can't switch -- with a lot of difficulty.

One thing is clear, the streaming servers -- services are the winners.

Should companies stop the business models of downloads?

Have customers moved away from paying for music that they would rather stream?

For the end of last year you did see a little bit uptake of downloads sales.

So there is still a market to own a certain amount.

The argument that those in streaming have always given is, if you stream, you hear more stuff, and you are more selective than you do buy a certain amount.

Very different classes of customers out there.

Again, there is a group that loves the top 40 music that came to buy very little music.

There are those who love slightly more indie, slightly more a click it, and they tend to buy a little more music.

So i think streaming is part of the future.

It is a big part of the future.

Not only, by the way, in music but also video.

A huge part of the future.

What do you expect us to do with our time?

What i don't get here is where we are going to find the time for all the little stuff?

Whereas the time in the day to do that and do all the other stuff as well?

I just don't see it.

Some of it is multicasting -- we have used the term for years -- but if i am listening to justin bieber, i am not multitasking.

But -- in all due respect, you are not the core audience for this conversation.

Not listening to the biebs?

He's so damdn good --intense bit like stephen stills.

You're killing me.

The king of streaming in all -- teleplays out, our twitter weston has to do with it.

If you are listening to justin bieber over pandora and you are trying to watch movies -- what would you sacrifice for a lower cell phone bill?

You are doing a lot on your cell phone.

What do you give up?

Tweet us @bsurveillance.

This text has been automatically generated. It may not be 100% accurate.

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