What the End of the App Era Means for the Music Business

The average smartphone user downloads less than 1 app per month, according to comScore. The era of apps is ending, and we’re moving in an era of artificial intelligence interacting with us through messaging apps, chatbots, voice-controlled interfaces, and smart devices.

What happens to music in this context? How do you make sure your music stands out? How do you communicate your brand when the interface goes from visual to conversational? And what strategic opportunities and challenges does the conversational interface present to streaming services?

 

The next 3 interfaces for music’s near future

Our changing media reality means everyone in music will have to come to grips with three important new trends.

Understanding the music business means understanding how people access, discover, and continuously listen to music. This used to be the record player, cassette player, radio, cd player, and now increasingly happens on our computers and smartphones. First by playing downloads in media players like Winamp, Musicmatch Jukebox, or iTunes, but now mostly via streaming services like Spotify, Apple Music, but also YouTube.

Whenever the interface for music changes, the rules of the game change. New challenges emerge, new players get to access the space, and those to best leverage the new media reality gain a significant lead over competing services or companies, like Spinnin Records‘ early YouTube success.

What is a media reality?

I was recently talking with Gigi Johnson, the Executive Director of the UCLA Center for Music Innovation, for their podcast, and as we were discussing innovation, I wanted to point out two different types of innovation. There is technological innovation, like invention, but you don’t have to be a scientist or an inventor to be innovative.

When the aforementioned categories of innovations get rolled out, they create new realities. Peer-to-peer technology helped Spotify with the distribution of music early on (one of their lead engineers is Ludvig Strigeus, creator of BitTorrent client utorrent), and for this to work, Spotify needed a media reality in which computers were linked to each other in networks with decent bandwidth (ie. the internet).

So that’s the second type of innovation: leveraging a reality created by the proliferation of a certain technology. Studios didn’t have to invent the television in order to dominate the medium. Facebook didn’t have to invent the world wide web.

A media reality is any reality in which innovation causes a shift to a new type of media. Our media reality is increasingly shifting towards smart assistants like Siri, an ‘internet of things’ (think smart home), and we’re creating, watching, and interacting through more high quality video than ever before.

Any new media reality brings with it new interfaces through which people interact with knowledge, their environment, friends, entertainment, and whatever else might be presented through these interfaces. So let’s look at the new interfaces everyone in music will have to deal with in the coming years.

Chatbots are the new apps

People don’t download as many apps as they used to and it’s getting harder to get people to install an app. According to data by comScore, most smartphone users now download fewer than 1 app per month.

So, in dealing with this new media reality, you go to where the audience is. Apparently that’s no longer in app stores, but on social networks and messaging apps. Some of the latter, and most prominently Facebook Messenger, allow for people to build chatbots, which are basically apps inside the messenger.

Companies like Transferwise, CNN, Adidas, Nike, and many airlines already have their own bots running on Messenger. In music, well-known examples of artist chatbots are those by Katy Perry and DJ Hardwell. Record Bird, a company specialized in surfacing new releases by artists you like, launched their own bot on messenger in 2016.

The challenge with chatbots is that designing for a conversational interface is quite different from designing visual user interfaces. Sometimes people will not understand what’s going on and start requesting things from your bot that you may not have anticipated. Such behaviours need to be anticipated, since people can not see the confines of the interface.

Chatbots are set to improve a lot over time, as developments in machine learning and artificial intelligence will help the systems behind the interfaces to interpret what users may mean and come up with better answers.

VUIs: Alexa, play me music from… uhmm….

I’ve been living with an Amazon Echo for over a month and together with my Philips Hue lamps it has imbedded itself into my life to the extent that I nearly asked Alexa, Amazon‘s voice assistant, to turn off the lights in a hotel room last weekend.

It’s been a pleasure to trade in the frequent returns to touch-based user interfaces for voice user interfaces (VUIs). I thought I’d feel awkward, but it’s great to quickly ask for weather updates, planned activities, the time, changing music, changing the volume, turning the lights on or off or dimming them, setting alarms, etc. without having to grab my phone.

I also thought it would be awkward having friends over and interacting with it, but it turns into a type of play, with friends trying out all kinds of requests I had never even thought of, and finding out about new features I wasn’t aware of.

And there’s the challenge for artists and businesses.

As a user, there is no home screen. There is nothing to guide you. There is only what you remember, what’s top of mind. Which is why VUIs are sometimes referred to as ‘zero UI’.

I have hundreds of playlists on Spotify, but through Alexa I’ve only listened to around a dozen different playlists. When I feel like music that may or may not be contained inside one of my playlists, it’s easier to mentally navigate to an artist that plays music like that, than to remember the playlist. So you request the artist instead.

VUIs will make the branding of playlists crucial. For example, instead of asking for Alexa to play hiphop from Spotify, I requested their RapCaviar playlist, because I felt the former query’s outcome would be too unpredictable. As the music plays, I’m less aware of the artist names, as I don’t even see them anymore and I hardly ever bother asking. For music composed by artificial intelligence, this could be a great opportunity to enter our music listening habits.

The VUI pairs well with the connected home, which is why tech giants like Google, Amazon, and Apple are all using music as the trojan horse to get their home-controlling devices into our living rooms. They’re going to be the operating system for our houses, and that operating system will provide an invisible layer that we interact with through our voice.

Although many of the experiences through VUIs feel a bit limited currently, they’re supposed to get better over time (which is why Amazon calls their Alexa apps ‘skills’). And with AI improving and becoming more widespread, these skills will get better to the point that they can anticipate our intentions before we express them.

As voice-controlled user interfaces enter more of our lives, the question for artists, music companies, and startups is: how do we stand out when there is no visual component? How can you stay top of mind? How will people remember you?

Augmented reality

Google Glass was too early. Augmented reality will be nothing like it.

Instead of issuing awkward voice commands to a kind of head mounted smartphone, the media reality that augmented reality will take shape in is one of conversational interfaces through messaging apps, and voice user interfaces, that are part of connected smart environments, all utilizing powerful artificial intelligence.

You won’t have to issue requests, because you’ll see overlays with suggested actions that you can easily trigger. Voice commands are a last resort, and a sign of AI failing to predict your intent.

So what is music in that reality? In a way, we’re already there. Kids nowadays are not discovering music by watching professional video productions on MTV; they discover music because they see friends dancing to it on Musically or they applied some music-enabled Snapchat-filter. We are making ourselves part of the narrative of the music, we step into it, and forward our version of it into the world. Music is behaving like internet memes, because it’s just so easy to remix now.

One way in which augmented reality is going to change music, is that music will become ‘smart’. It will learn to understand our behaviour, our intentions, and adapt to it, just like other aspects of our lives would. Some of Amazon Alexa‘s most popular skills already include music and sound to augment our experience.

This is in line with the trend that music listeners are increasingly exhibiting a utilitarian orientation towards music; interacting with music not just for the aesthetic, but also its practical value through playlists to study, focus, workout, clean the house, relax and drink coffee, etc.

As it becomes easier to manipulate music, and make ourselves part of the narrative, perhaps the creation of decent sounding music will become easier too. Just have a look at AI-powered music creation and mastering startups such as Jukedeck, Amper, and LANDR. More interestingly, check out Aitokaiku‘s Vimu, which lets you create videos with reactive music (the music reacts to what you film).

Imagine releasing songs in such a way that fans can interact and share them this way, but even better since you’ll be able to use all the data from the smart sensors in the environment.

Imagine being able to bring your song, or your avatar, into a space shared by a group of friends. You can be like Pokemon.

It’s hard to predict what music will look like, but it’s safe to say that the changes music went through since the proliferation of the recording as the default way to listen to music are nothing compared to what’s coming in the years ahead. Music is about to become a whole lot more intelligent.


For more on how interfaces change the way we interact with music, I’ve previously written about how the interface design choices of pirate filesharing services such as Napster influence music streaming services like Spotify to this day.

If you like the concept about media realities and would like to get a better understanding of it, I recommend spending some time to go through Marshall McLuhan‘s work, as well as Timothy Leary‘s perspective on our digital reality in the 90s.

Monetizing virtual face time with fans

How the convergence of 2 trends opens up new business model opportunities for artists.

When I landed in Russia to get involved with music streaming service Zvooq, my goal was to look beyond streaming. The streaming layer would be the layer that brings everything together: fans, artists, and data. We started envisioning a layer on top of that, which we never fully got to roll out, in big part due to the challenges of the streaming business.

It was probably too early.

For the last decade, a lot of people have been envisioning ambitious direct-to-fan business models. The problem was that many of these were only viable for niche artists with early adopter audiences, but as technology develops, this is less so the case today.

Let’s have look at a few breakthrough trends in the last year:

  • Messaging apps are rapidly replacing social networks as the primary way for people to socialize online;
  • Better data plans & faster internet speeds have led to an increase in live streams, further enabled by product choices by Facebook & YouTube.

Messaging apps overtaking social networks is a trend that’s been underway for years now. It’s why Facebook acquired WhatsApp in 2014 for a whopping $19 billion. While 2.5 billion people had a messaging app installed earlier this year, that’s expected to rise to 3.6 billion in coming years. In part, this is driven by people coming online and messaging apps being relatively light weight in terms of data use.

In more developed markets, the trend for messaging apps is beyond text. WhatsApp, Facebook Messenger, and Slack have all recently enabled video calling. Other apps, like Instagram, Snapchat, Live.ly, and Tribe are finding new ways to give shape to mobile video experiences, from broadcasting short video stories, to live streaming to friends, to video group chats.

For artists that stay on top of trends, the potential for immediacy and intimacy with their fanbase is expanding.

Messaging apps make it easier to ping fans to get them involved in something, right away. And going live is one of the most engaging ways to do so.

Justin Kan, who founded Justin.tv which later became video game streaming platform Twitch (sold to Amazon for just under $1 billion), launched a new app recently which I think deserves the attention of the music business.

Whale is a Q&A app which lets people pose questions to ‘influencers’. To have your question answered, you have to pay a fee which is supposed to help your question “rise above the noise of social media”. And Whale is not the only app with this proposition.

Yam is another Q&A app which places more emphasis on personalities, who can answer fans’ questions through video, but also self-publish answers to questions they think people may be curious about.

Watching a reply to a question on Yam costs 5 cents, which is evenly split between the person who asked and the person who answered. It’s a good scheme to get people to come together to create content and for the person answering the questions to prioritize questions they think will lead to the most engagement.

What both of these apps do is that they monetize one of the truly scarce things in the digital age.

Any type of digital media is easily made abundant, but attention can only be spent once.

These trends enable creating an effective system for fans to compete for artists’ attention. I strongly believe this is where the most interesting business opportunities lie in the music business at the level of the artist, but also for those looking to create innovative new tools.

  1. Make great music.
  2. Grow your fan base.
  3. Monetize your most limited resource.

This can take so many shapes or forms:

  • Simply knowing that your idol saw your drawing or letter;
  • Having your demo reviewed by an artist you look up to;
  • Getting a special video greeting;
  • Learning more about an artist through a Q&A;
  • Being able to tell an artist about a local fan community & “come to our city!”;
  • Having the top rank as a fan & receiving a perk for that.

Each of these can be a product on their own and all of these products will likely look like messaging apps, video apps, or a mix.

A lot of fan engagement platforms failed, because they were looking for money in a niche behaviour that was difficult to exploit. People had to be taught new behaviours and new interfaces, which is hard when everyone’s competing for your attention.

Now this is becoming easier, because on mobile it can be as simple as a tap on the screen. Tuning into a live stream can be as simple as opening a push notification. Asking a question to an artist can be as simple as messaging a friend.

So, the question for the platforms early to the party is whether they’ll be able to adjust to the current (social) media landscape, or whether they let sunk cost fallacy entrench them in a vision based on how things used to be.

There’s tremendous value in big platforms figuring out new ways for artists and fans to exchange value. They already have the data and the fan connections. Imagine if streaming services were to build a new engagement layer on top of what already exists.

Until then, artists will have to stay lean and use specific tools that do one thing really well. Keep Product Hunt bookmarked.

Use Facebook Messenger to Access Spotify Discover Weekly and Release Radar – in 4 Steps

A bot for Facebook Messenger lets you access your Spotify Release Radar and Discover Weekly playlists from inside Messenger. Since it currently lacks an interface, here are the steps to follow to get new music recommendations delivered to Messenger.

Discover Messenger

1. Add the bot

You can add the bot by clicking this link.

2. Sign in

Tell it you want to sign in, by typing sign in. Then login to Spotify & give the bot the necessary permissions.

3. Play something

You can now choose to play tracks on Spotify or get 30 second previews.

4. Extra commands

Got lost and want to bring back the playlist? Type current week. You’ll also be able to tell it playlist 1 week ago to get last week’s playlist, but first you’ll need to be using the bot for a while.


At the time of writing, there are still some bugs to iron out. If you run into any difficulties, you can contact the bot’s maker, Daniel Noshkin, on Twitter or on Product Hunt.

If you ever want to revoke the app’s access, you can find all apps that have access to your Spotify account in your settings.