Last week (November 9, 2017), I attended the Futuresource Sound Collaborative 2017 conference, at the Ham Yard Hotel in London. With the topic "A Alter is Gonna Come," the briefing was a valuable and insightful consequence. The audio recording of the full extent of these presentations has been uploaded to YouTube.
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| Full audio recordings for Futuresource's Audio Collaborative 2017 conference are now available online. Just click on the prototype. |
To entice our readers to actually spend the hours listening to those interventions (and for those who don't have the time to practice it), I will share some of the central highlights, adding some of my personal takes on the topics addressed. A more extensive version of this report is also available here.
Panels included some of the leading executives and experts in diverse fields of the sound and music industry, addressing the multiple verticals, such every bit Sound's Role in the Smart Dwelling house; Immersive Audio Experiences; The Expanding Influence of Social Media Platforms; and The World of Luxury Audio. The consummate list of speakers and panels is available here.
The event opened with a keynote past Adriaan Thierry, Managing Director, EMEA & AMPAC, Sonos, who provided an insightful vision of how this leading company foresees its space in the industry and is committed to its vision to offer the all-time possible solutions for whole dwelling house sound. In a mode, information technology was refreshing to hear how the pioneers of multiroom have non lost focus, are so committed to evolving in this segment, and run into a huge potential on the category, even if facing the challenges of voice integration and the smart speaker's disruption, past building those boosted features on their own connected platform and engineering science and still atomic number 82 on the home sound space. In fact, as Thierry stated, Sonos sees a huge opportunity to lead in the "golden age of content, open and immersive," by leveraging its 15 years of leadership in home sound "to builder the ultimate sound experience for the home."
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| Global demand for home audio products grew by 17% to 103.6 million units, while trade value grew past xx% to $eleven.7 billion by the end of 2016. Source: Futuresource Consulting Worldwide Dwelling Audio Marketplace Report |
The event in itself was a primal networking opportunity for many of the leading experts in some of the almost important companies and brands in the market today to freely appoint in inspiring conversations and exploring partnerships - which as it was demonstrated multiple times during the presentations, are primal to the industry'due south momentum. This included an interesting presentation past Andrew Tiil, VP Technology and Marketing, Harman, on "The Rate of Change of In-Automobile Entertainment," and a endmost keynote past Riad Hawa, VP Global Hardware and Partnerships, Deezer on "What'southward Next for Music Streaming."
During i of the panels "The World of Luxury Sound," Bob Stuart, creator and MQA and Meridian'southward founder, stated: "Whenever the music industry did well, the hardware manufacture did well," referring to the fact that, over the last decades, the music industry has flourished with recording and distribution formats - from vinyl to CDs and digital streaming, while suffering astringent downturns with the audio cassette, MP3, and digital piracy. As Stuart maintains, there is a direct human relationship between the quality of the formats that are available to the consumer and the way consumers answer by investing in improve sound reproduction to enjoy that music.
My key takeaway from that statement is that the audio industry in general is at present thriving and faces very exciting perspectives. Every bit Stuart, and virtually of the other speakers and panelist in this issue confirmed, the market is growing - fifty-fifty if companies and consumers are confronted with disruption, changes, defoliation, and uncertainty, as Sonos' Thierry remarked. I think that sums upwardly this event well.
In his presentation "What'due south Next for Music Streaming?" Riad Hawa, VP Global Hardware Partnerships, Deezer, addressed how service providers are embracing those fundamental technologies and market developments that are simultaneously challenging but exciting the industry. I of those primal developments being precisely digital distribution and streaming. As confirmed as well by other music streaming service executives speaking at the event, we are just at the beginning of that of import transition for the music manufacture. As Hawa stated, only 10% of global the population has so far used music streaming services. Every bit confirmed likewise past the latest IFPI Global Music Report 2017, in that location is "An explosion in global music consumption supported past multiple platforms," with revenues in the "Music Streaming" segment expected to grow at a 10% rate for the next five years.
Another important attribute revealed by these latest statistics is that the diversity of music, artists, and genres, available on the streaming platforms has never been greater (the cumulative effect of labels re-releasing practically all recorded music, plus new talent), while at the same time the number of people really paying to mind to music has never been greater. The revenues may seem smaller when compared to the golden-age of CD, only in fact the global book of business has never been larger.
With Spotify, Apple Music, Tidal, Deezer, and many other services leading the industry, at that place is a consensus that the next stage of global expansion will exist a challenge, since it needs to reach out to the occasional and less-enthusiastic user groups. Every bit of July 2017, Spotify - the leading music streaming service with over 140 one thousand thousand users - had 60 million paying subscribers worldwide, up from thirty million paying subscribers in March 2016. Apple Music also already surpassed 30 one thousand thousand paid subscribers. Now, the music industry needs to conquer a new profile of more generic users, which are not so emotionally engaged with technology, and much less with the traditional concept of hi-fidelity or living room stereo. That's precisely where mobile devices - smartphones simply also wearables and increasingly "hearables" like true wireless earbuds - only also the increasing part of social media as distribution platforms - will exist decisive.
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| Prior to the panel "Audio's Role in the Smart Dwelling," Futuresource revealed additional market indicators on the number of vocalization assistant devices now bachelor from 33 brands, and 9 different platforms. |
As most of the speakers in this conference have addressed, there'due south one new important trend that comes into play: vocalization. Vocalism was the dominant topic in Thierry's keynote address, and also for the outset console "Audio'due south Role in the Smart Home." As all the participants on this panel confirmed, voice assistants are positioned to exist the next-generation interface. Equally the earlier success of products such as the Amazon Echo have proved for the habitation, voice assistants are fueling growth in what was an already buoyant sound market. The principal use for the first generation of smart speakers is precisely to interact with music streaming services - and this is crucial for further expansion.
So far, services like Spotify and Tidal have been designed for a user contour that either already owns a music library or knows what he wants to hear and how to explore a rich music catalogue - making the extension and depth of metadata, from artists to album names, as well as comprehend art crucial. But the aforementioned services in mobile platforms - in particular, the recently refreshed Apple tree Music interface - is mainly targeted at those users who adopt to rely on uncomplicated playlists, based on the users' basic preferences and/or curated directly for them. In a way, approaching the radio feel. For that kind of usage, voice interfaces are perfect and much easier, and can be direct related to unproblematic moods and emotions, expressed in requests such as, "Alexa, play happy music."
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| In his keynote, "What's Next for Music Streaming?" Riad Hawa, VP Global Hardware Partnerships, Deezer, discussed how 1 of the world'due south leading music streaming services embraces the central technology and market developments, the impact of vocalisation in music engagement, and the part of higher quality sound experiences. |
On that note, during his presentation, "What's Next for Music Streaming?," Hawa, highlighted the advantage for "pure players in music services" to expand their reach past being in all platforms, reacting faster to new technology and market developments, while companies such as Apple, or Google, or even Amazon just see music distribution every bit a mode to reinforce their complex ecosystems, of hardware, software and services. This is something that Deezer sees every bit strategic, in the mode information technology is able to plant new partnerships with the sound industry, particularly with hardware manufacturers, while at the same time driving consumers to higher quality audio experiences. The strategy, Hawa contended, lies in differentiation, quality of metadata, and creating new usage profiles, such every bit exploring AI, and including integration with social media platforms.
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