Tech-savvy Canadians seem to enjoy listening to music online, but few wants to pay for the service.
There are many online music services to choose from in Canada, including free radio-style options like CBC Music and Songza, and subscription-based services with access to millions of songs such as Deezer, The Vault, Rara and Rdio.
A recent report by Media Technology Monitor suggests that listening music online has become a new trend with a number of Canadians. About 59 percent and 46 percent of Anglophones and Francophones respectively listen to music online (audio streaming), with YouTube being the most common source for seeking music.
Another similar report by the Department of Canadian Heritage also suggests that many Canadians are interested in streaming music online but most of them want it to be free.
Nearly one out of three respondents said they were likely to subscribe to a free online music service, while just 17 percent said they were likely to go for monthly-based fee subscription service.
Canadian Smartphone users are more likely to access streaming service on their device. About 43 percent said they subscribe to free site for music while 25 percent go for paid service.
Recently, a U.S. based music streaming company - Rdio has announced an offer of free audio streaming in Canada for up to six months. This offering is to attract music lovers on the service and then convert them into paying subscribers.
But the free service for up to six months is only for computers (which usually costs $5 for a month subscription) and does not work on smartphones. Access in smartphones will normally cost $10 a month.
"We are in this to make money and we believe we're offering a great service that people ultimately should be happy to pay for. And we're willing to give them (a free trial) and subsidize them for a good amount of time, but from an economic standpoint, it can't be perpetual given that we're not forcing them to look at ads or listen to ads while they're doing that," says Drew Larner, CEO, Rdio.
The company has expanded its free trial to Canada on the aggressive competition of the industry, says Larner. Many similar companies charge the same price, that is, $5 for a month subscription, for almost the same service.
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