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09/06/2014 by
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Twitter Goes Music And Wants To Buy Pandora & Spotify

Twitter seems to go music with its hunt for SoundCloud, Pandora and Spotify. And how smart is Twitter’s music strategy?

Twitter Goes Music And Wants To Buy Pandora & Spotify. Story by Igor Beuker for ViralBlog.com

The blue bird is talking to SoundCloud, Pandora and now Spotify incrowders have stated.

Is there really music in Twitter? Discover the insights here.

Twitter wants to buy SoundCloud, Pandora & Spotify

In May 2014 Twitter talked with Berlin-based SoundCloud, the ‘YouTube for audio’ with 250 million users end of 2013.

Twitter Goes Music And Wants To Buy Pandora & Spotify. Story by Igor Beuker for ViralBlog.com

Valued around $700 million, SoundCloud would be Twitter’s most expensive acquisition by some margin.

In the end Twitter quit the negotiations because internally there was no alignment about the profitability of SoundCloud’s audio-ads. There were also doubts about SoundCloud’s long term copyright.

Today the Financial Times wrote that the SF-based micro-bolling network has had no official talks with Pandora and Spotify, yet.

Spotify however, is valued at $4 billion, and Pandora even at $5 billion. Twitter’s most expensive acquisition ($300 million) so far? Mobile ad firm MoPub.

So far? Twitter talks, but does not acquire. Yet. But Apple recently acquired Dr. Dre’s Beats Music for $3 billion.

My Opinion on Twitter’s Music Strategy

Twitter is eager to claim and coin music, but I seriously doubt their future success. Why? Well, there are a few reasons.

One. In 2013 Twitter launched a stand-alone Twitter Music app, but the service never took off. Twitter killed its music app, which never got much play anyway, in March 2014 already.

Two. Internally Twitter does not have alignment on the profitability of SoundCloud’s audio-ads. But SoundCloud already switched to native ads.

Three. Twitter’s hunt to acquire a music service is said to be led by its CTO Ali Rowghani. I am not convinced that he has the strategic vision to pick the disruptive business model of the future.

Like many other leaders at Twitter that seem to lack knowledge and experience on music, video and entertainment.

With the current team at Twitter I think is better for them to keep their focus on social commerce and social TV. Music seems to be out of their league.

Any focus would be great, by the way. The blue bird seemed more happy in its golden cage than with its silver freedom (money to spend).

So where’s their chief strategy officer in this acquisition process?

But maybe, we will soon listen to Twitter Radio with some very famous TJs?

What About You?
What do you expect from Twitter and music? We all get smarter from peer discussions, so share your opinion in the comments below. Or read more in our related stories.

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About the Author
Igor Beuker is an acclaimed trendwatcher & pro speaker, serial entrepreneur, marketing consultant and board member at several disruptive media, technology and entertainment firms. Book Igor as keynote speaker, follow Igor on Twitter or contact him via LinkedIn.

 

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