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The music industry was one of the first sectors to be fundamentally disrupted by the Internet. Facing an epic and almost existential battle with piracy, coupled with expectations that music should be free, the record labels have tested many different business and distribution models. With sales of recorded music finally growing again, telcos and their partners can learn a lot from the music industry’s hits and misses.
TeliaSonera’s digital partnership with OTT streaming music disruptor Spotify has worked well when other operator music tie-ups have languished. We investigate how the partnership has helped both companies to target new market segments and develop innovative products, with Spotify benefitting from TeliaSonera’s marketing channels and direct investment, and TeliaSonera leveraging both Spotify’s brand association with youth-oriented digital innovation, and the serious stickiness of the Spotify service.
Partnering is a key competence for building telco digital services offerings, but many past attempts have failed. So what does it take to succeed? In this briefing we review viable strategies, key success factors and barriers, and profile the highly effective approach used in AT&T’s Drive Ecosystem.