SCHIBSTED CASE
JUMPING INTO THE WORLD OF MUSIC STREAMING
I
n the late autumn of 2011, Schibsted Media Group launched a comprehensive due diligence of the music streaming market to prepare for submitting a public offer for the listed company Aspiro AB (Stockholm stock exchange).
The music streaming industry is growing fast as consumers adapt to the idea of just borrowing music instead of owning it. Schibsted considered music streaming an interesting online category to invest deeper in. According to a recent survey, music streaming is on the increase across Scandinavia as 61% in Norway, 56% in Sweden and 35% in Denmark had access to a streaming service in June 2012. Aspiro AB has several product areas, among others Aspiro Music that delivers its streaming service branded WIMP for consumers in Norway, Sweden and Denmark as well as a white label music solution for ISPs, telecom operators and CabelCos throughout Europe. Schibsted has vast digital media knowhow and therefore the knowledge and capabilities to further grow and develop WIMP. The due diligence had focus on analysing industry trends within in the music industry and on assessing where the digital distribution music market was heading in terms of delivery models. In addition, a large market analysis was conducted to determine ARPU levels, penetration and service delivery models. This included a large consumer research study in the Nordic countries. Finally, a market attractiveness analysis of selected global markets was performed to guide future roll-out of the WIMP service. In the beginning of 2012, Schibsted Media Group ended up acquiring 74.3 per cent of Aspiro AB. Later, Schibsted partnered with Platekompaniet and Ferd Capital to further develop WIMP through a joint ownership in the newly founded holding company Streaming Media AS. About WIMP WIMP is a Scandinavian music streaming service provided by Aspiro Music. Through a payed subscription, customers get access to more than 16 million songs across platforms; at the same time artists, composers and other copyright owners get their share. WIMP has an active local editorial staff that among others provides recommendations and creates playlists.