Online Music Market Has Much Supply. But Where Is The Demand?

1213630_musical_key_2Are you aware that the most important content that shapes Turkish Internet market revolves around music category?

A majority of website bans are due to this content type, most significant costs are created by these kind of websites, after video sites, the business models that makes the most income for third parties are music initiatives, and video, adult, friendship, game and surely music sites get the highest traffic. In addition, in the last period, the type of content which brands invest the most is music.

Music initiatives are considered the center of entertainment, they are much easier to create the software and infrastructure compared to video, can be licensed in one center for Turkish content without messy licensing, and can easily attract masses  since there is not domination in the market. Under these circumstances, music initiatives have recently started to take more and more place in the sector.

Recently, when we wanted to listen to music online, we thought of preferred initiatives in the sector like Cokenmusic.comFizy.comTTNetMuzik.com.trMuzik.net, GncPlay.com,  and Musicopat.com. A short while ago, MyNet’s music service Kavun was added to this list.

When we look at the list closely, we can see that Musicopat.com has recently shut down its music feature due to high costs and the fact that it hasn’t gotten the required commercial return, and continue as a music community. We do not know if it will change its mind.

Cokenmusic.com is a service that enables listening to both Turkish and foreign music with membership and it was launched within the scope of Coca-Cola’s marketing budgets. We do not have information on Coca-Cola’s own statistics, but as you can see on Google Trends graphics, it seems that it hasn’t made the expected effect.

TTNetMuzik.com.tr lets TTNet members listen to music free, while you need to sign up to download music and naturally, it gets support within TTNet marketing budget. We can say that the service is much better compared to past, and although its traffic climbs up when TTNet gives ad support, its general situation is not so different from its competitors in the sector.

I do not know about the last situation of Fizy.com’s contract with MUYAP but a short while ago we heard that they had some negotiations on the issue. I guess that Fizy’s operational costs are lower compared to a classic music website since it broadcasts contents of video sites as sound, rather than directly MÜYAP catalogues. I believe that the initiative, which continues with Reklamz partnership, will not have huge problems in making ad income. A while ago, Fizy experienced a sudden fall in its traffic when it removed YouTube content from its system, but these days we can see that YouTube contents is again in its system.

Music.net is an initiative of AdTech, the ad network, and after listening to 3 songs, it is required to sign up and be a member via SMS. I do not believe that it will have some big problems concerning costs and incomes. As a matter of fact, if we consider AdTech’s works, it has probably the biggest turnover in the sector. But it is hard to predict the future of this model, since operators are about to take some delicate decisions concerning membership via SMS, as we have heard.

GncPlay.com is a service that Turkcell launched within gnctrkcll, and it requires membership to listen to a whole song while you can listen to the first 30-second part of it without signing up. This service might again be considered a marketing activity and I guess that it I not working on a delicate income/cost balance. Unfortunately, it is not possible to make a correct statistical analysis because of the sub-domain it is broadcasting music currently.

Kavun, launched on Kavun.mynet.com a little while ago, enables its members listen to music unlimitedly, while you can listen to only first 30-second part of the songs if you are not a member. We can say that, taking place under MyNet in order to keep the traffic in, this service has a clearer aim than most of the above initiatives. In addititon, we cannot access its statistics as it broadcasts under Mynet subdomain.

Another service that Turkish Internet users used mostly was Last.Fm to which access was banned was banned by court a short while ago. It wouldn’t be wrong to say that the service, is in the same position in terms of traffic as the popular services that we mentioned above and even, it has more traffic when we consider last.fm other than lastfm.com.tr that is blocked for the moment.

Lastfm-google-trends1

When we consider all of the above, we can see an interesting picture and we are required to think about it.

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As the general picture brings us and preferences of Turkish Internet users as online music we can say that:

Turkish Internet users do not still prefer an only channel to listen to music and there is not domination on this field. Seasonal trends, viral affects, ad/marketing campaigns and special facilities that services provide give direction to user preferences.

Turkish Internet users give importance to results, rather than methods. They prefer the easiest and fastest way to access to music. This is not always an online music website. Music clips or songs without videos that can be listened via video websites can be sufficient.

Another point that we need to think about in an elaborative manner is that music-based initiatives mostly attract the audiences when they make ads, and then tend to be forgotten. For this, last 12-month Google Trends graphic of TTNetMuzik.com.tr will explain this trend.

TTNetMuzik-google-trends1

Finally, one should look closely at supply/demand issue, which is the starting point of this study.  Yes, Turkish Internet users do like music content and music is probably one of the contents with the most rating in the sector. However, according to Google searches the word “music” has not shown a big climb in the recent years.

TR-muzik-google-trends1

When we consider search trends of Google, in the last years, one of the most climbing key words son online game market, which we think that it is not being thought on enough. Even, the keyword game is more searched among Turkish Internet users than porn content. In this point, I can’t help thinking that if we asked “In Turkey, which one is most searched word: porn or game?” the majority would say “porn”.

TR-keyword-google-trends1

There is another issue that doesn’t gain the attention, other than the fact that “Music” content hasn’t shown a climb in the last period, and the high importance the market gives to it. TV series!

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“TV Series” searches exceed music searches in Google made by Turkish users and it has been climbing especially since 2008. However, it is not possible to say that there are a large number of serious initiatives in the market to match this demand.

When YouTube gained popularity and was bought by Google, video websites experienced a boom in Turkish Internet market and for us, it showed that this was a trend, and we saw brands’ marketing campaigns revolving around video initiatives. It was a correct approach and decision, since we can see the climb of interest in video content in that time clearly. However, the recent interest in music content, which made us feel urgent to make this study and is supported by brand names, catches our attention.  But this time, we cannot say that it catches the sufficient attention for this.

In Turkish Internet market, “music” is highly unengaged and not dominated. However, users do not show a climbing demand for it to happen. In the last years, demand for music content is almost the same as the demand for the keyword “music”.

If you like to know the reason for this, we have some opinions.

There is not a stable method for music content. It means that, it is not common in Turkish Internet market to go to a website like YouTube, DailyMotion, Izlesene, VidiVodo and watch a video clip. The most important reason of this is that demand for music content is mostly for “professional content”. Yet, amateur content in videos get much more demand and strengthens itself with a viral dispersion. Naturally, about professional music content, easy to apply and correct licensing model is not common in Turkey yet, so initiatives in this field apply different model from each other mostly. This makes it harder for the users to sense a standard structure and it prevents demand to music content get higher like video.

As a result, music, which producers in Turkish Internet market consider the trendy subject lately, does not attract the expected attention from consumers. This leads the initiatives in the sector not being able to get necessary feedback and fall into silence. And for Turkish Internet users whose only aim is to access music, professional music initiatives that are hard to realize and whose procedures are difficult, are being replaced by initiatives like Facebook, YouTube etc. that provide video/music content. While we don currently have statistics, we can say that the more than the music that is listened through the initiative we have mentioned above  can already be accessed via YouTube, Facebook and similar services.

In short, some regulations are required to be completed, and until they are completed, it is a fact that there is much supply in the music market, but its consumption  is done on different fields at the moment…

Image Courtesy: sxc.hu/josterix

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