Thursday, April 18, 2013

Twitter Music = New business from Twitter's infrastructure and CRM strategy?

4/18/2013 07:52:00 AM

Twitter has just launched Twitter Music today. It is available in US, Canada, the UK, Ireland, Australia and New Zealand on iOS app. It will soon be available on Android and on Web (

Back in 2009 I said Twitter was kind of like an SMS (do you still remember? It stands for Short Messaging System?) but I was wrong. It's actually a Personalized Broadcasting System because whatever you twitted can be followed by anyone and you have not much control about it. SMS is a one-to-one communication system. 
I have written a blog post (Twitter the new hot property on the web) about Twitter back in 2009 comparing it with Facebook. I said that Twitter had kept it's user interface as simple as possible so they could build business on top of the communication channel. It seems a bit long but now they are now finally building Music business on top of it. (They have Vine too for video) I am not sure other specialized business Twitter has built so far but music is definitely one huge business to take on. I think music is a very good choice of new business for Twitter because:
  • users are constantly searching for new music all the time so they like to receive broadcasted announcement and Twitter is a broadcasting system.
  • yet users are picky about what they like to listen so they like to tune in to specific channel or screen and pick the right music - Twitter can certain build specific channels different kinds of music.
  • users are interested to follow the trend so they needs lots of market consumption info and follow the trend - Twitter can track search, download and playing behavior.
  • music can be delivered electronically so there is much lesser issue about logistic either on the selling side or supplies side. 
And I bet that #music is probably one of the most tweeted and retweeted matter on Twitter. Those guys in Twitter must know this.

For your business, your new businesses do not just come out from nowhere. They are usually a result of your previous work and new businesses typical build on top of or leveraging existing business. I have always stress on the point that it is increasingly difficult to find a differentiable product these days with so much broader breaking technologies driving globalization. Building sustainable differentiation  is near impossible unless you own certain kind of monopoly. So the only sustainable business one can build is one that grow and evolve and keep very current with the market. This means that all business must find room, while meeting your short term objectives, to plan for long term success. And long term success means you collect enough intelligent about your customers' needs and wants so you build the right business that is welcome by your immediate customers.

While you may not own a big communication channel like Twitter to start their music business, you still need to ensure that you have excellent communication channel with your customers so you can get insight from them so you can source the right new products to them! If there is one long term investment you need to invest in your business, it's building a good communication channel (good meaning that you can learn something from your customers feedback and usage behavior) and seriously learn your customers' behavior. With today's social media technology, you can so so easily and cost effectively.