Apps…Webpages…The

Future?
Music Businesses Looking To Go
Mobile
 A. Magrini 2

Andrew Magrini
Music Technologies
Dr. E. M. Harrington
December 14, 2010

Apps…Webpages…The Future?
Music Businesses Looking To Go Mobile

There is a growing shift in how people listen to music. Long gone

are the days where consumers purchase physical forms of music for

their enjoyment, due in large part to developing mobile technologies.

The portable music industry is experiencing tremendous growth. While

there is no denying that all of the music companies are going mobile,

one pressing question is: between applications (“apps”) and mobile

webpages, which platform better disseminates music to the public? To

answer this question one must understand what these systems are,

their potential advantages and disadvantages, and their interaction

with the current music market.

Since the launch of the MP3 player- more specifically the iPod in

2001, the portable music technology has been evolving at an

exponential rate. There is untold room for growth in this area, with

estimates of 1.82 billion Internet-enabled mobile devices as soon as

2013.1 Advances in social media platforms (i.e. Facebook, MySpace,

Twitter, etc.) have altered how consumers connect with products and
1
Jaiswal, Janet. Mobile Applications vs. Mobile Websites: Do the Privacy Issues
Differ? Accessed December 11, 2010. < http://bit.ly/axk0ZR>
 A. Magrini 3

the brands behind them. Simply stated: it is no longer a question of if

businesses should tap into this market, but how.

One option is developing a mobile webpage. Webpages are the

long-standing way users access the Internet. It is estimated that over

28% of the world population accesses the Internet on a daily basis, a

total of 1.96 billion people.2 Locally, one in five Americans access the

Internet via mobile devices (i.e. operating system “OS”-operated

phones, tablets, etc.), and mobile usage is expected to surpass

desktop usage in as little as five years.3

Where webpages are the window to the Internet, apps are

platforms offering a new level of immersion for consumers. Premiered

in 2007 in conjunction with the first-generation iPhone, apps are native

programs downloaded directly to consumer’s mobile devices and have

a variety of features. Considering apps are downloaded to the device,

they are capable of extending their features beyond what can be run

through a browser. Usage of apps is on the rise, and is generally more

popular with younger generations. Of all the people who have mobile

devices capable of using apps: 79% of 18-29 year-olds, 67% of 30-49

year-olds, and 50% of those 50 and older use them.4

2
Internet World Stats: Usage and Population Statistics. INTERNET USAGE STATISTICS:
The Internet Big Picture. Accessed December 11, 2010. < http://bit.ly/AKbO5 >
3
Grossi.com. 10 Reasons Why You Need A Mobile-Friendly Website. Accessed
December 11, 2010. <http://bit.ly/e4n3PX>
4 Kiesow, Damon. Pew: App users are key consumers of digital news. Accessed
December 11, 2010.
< http://bit.ly/gCVz4J>
 A. Magrini 4

There is ample opportunity in both platforms. However

businesses need to understand and consider the inherent strengths

and weaknesses of each. In order to do a side-by-side comparison

between apps and webpages, there are five primary areas of interest

to consider: cost; amount of control; usability; maintenance; and

security.

Understanding costs involved with development,

implementation, and upkeep is crucial for the success of any new

project. Most businesses will agree that by understanding the initial

costs, the rest of the process can be budgeted accordingly. Between

apps and webpages, it is significantly less expensive to develop and

operate a mobile webpage than it is to design and implement an app.

Webpages have the advantage in terms of design largely because

developers have nearly 20 years of experience with them, whereas

app developers have a little over three years of experience.

Furthermore, revenue from priced apps must be split between the

developer and the company hosting the app (i.e. Apple generally takes

30% of revenue generated for use of the iTunes Store 5). Companies

developing webpages need to register a domain name, have a site

developed, pay monthly hosting fees to the internet service provider

(ISP), and budgeting for search engine optimization- which is much

cheaper considering they retain 100% of revenue generated.

5
Arne Sæterås, John. Mobile Web vs. Native Apps. Revisited. Accessed December 12,
2010. <http://bit.ly/aP9Nh3>
 A. Magrini 5

While apps may be a more costly venture to start up, they make

up for it in the limitless amount of creative control a business has in its

development. As previously stated, apps are native programs

downloaded directly to a mobile device. This means their performance

is not limited by the constraints of the Internet and the browser

accessing it. Instead they operate using the mobile devices OS, and

function along the lines of a computer program. This allows for a

broader pallet of colors, more powerful graphics, and more intuitive

features that are simply unattainable through a webpage.

The high level of creative control allotted to an app goes hand-in-

hand with the app’s usability. The desired goal behind an app is to

provide the user with a more engaging experience. The more

transparent and intuitive the mechanics a particular function are, the

easier it is for a brand to make a lasting connection with the user. An

example of usability is reading a book through a static webpage versus

a reader app on a mobile device (example: New York Times App).

“Pages” of a book in a webpage are linked to one another and are

loaded when selected. A reader app is designed to look like a book and

actually resembles turning pages when manipulated. Although the

effect is simple, it serves as a means to streamlining the user

experience and ultimately improves customer satisfaction.

There is, however, one feature apps inherently lack that is a

core function in a webpage: interconnectivity. Webpages are all

 A. Magrini 6

connected to one another via the Internet. There are certain setbacks

(example: no connection, no internet), but this feature allows users to

move from one page to another and thus have multiple experiences in

one use. Apps are designed to give the user an immersive experience

for its one particular function. Since apps are independently

downloaded from one another, they lack the feature to connect with

one another.

The connection with the Internet is a major reason why

webpages are superior when it comes to overall maintenance.

Webpages consist of a single script that generates the content as seen

on screen. If there is an error or a need to replace something on a

page, developers can manipulate the script on the fly without the users

knowledge.6 It is this uninterrupted transparency apps currently lack.

App developers need to push updates and patches to users in order to

fix issues in the program. This may only take a few seconds on today’s

mobile devices, but multiple updates may cause enough interruption in

the user experience to dissuade users from long-term use.

Internet connectivity is a double-edged sword. While it allows for

interaction between web pages and transparent updates, security must

be a top concern at all times. Hackers, trojans, and viruses are all

capable of breaching a devices security and spreading to home

devices. As recently as August 2010, a virus downloaded to devices

6
Arne Sæterås, John.
 A. Magrini 7

with the Android OS mimicked the exterior of a media player app, but

sent premium-rate spam texts and wired the funds to the virus’s

developer.7 Such dangers are nonexistent currently for sanctioned

apps downloaded via the devices OS (i.e. Android devices have the

Android Market, Apple devices have iTunes). Apple and Google may

take set percentages of an apps revenue, but the added security

offered from them is worth added consideration by businesses.

Initial costs and maintenance aside, apps allow users to connect

with a particular brand in a way inconceivable previously. Mobile

webpages are a “safer” (read: less costly to develop and maintain)

venture for businesses, but their inability to capitalize on the

functionality of mobile devices leaves users wanting more from the

experience. Coupled with the added security issues, applications look

to be a better investment. (See attached Exhibit 1)

Now that it is understood that apps are the better choice, how

can the music industry utilize them in order to better disseminate

music to the consumer? In order to properly show the effectiveness an

app may have on a company’s success, the music-streaming company

Pandora will serve as a case study.

Pandora is a platform based around the concept of a user-

created radio station. Users create their own stations based on music

they like, and then share their station with other users. As songs are

7 BBC News. Virus writers hit Google Android phones. Accessed December 12, 2010. <http://tiny.cc/4s1m8>
 A. Magrini 8

streamed to the station, users can give a “thumbs-up” or “thumbs-

down.” Using these options allows for the station become more and

more specialized to a users taste in music based on similarities

between songs. Pandora is also based on the “Freemium” model as

described in Chris Anderson’s book Free: The Future Of A Radical

Price.8 Anyone can use an ad-supported free version of the platform,

while paid subscribers get content at higher streaming rates ad-free.

Pandora originally launched in 2000 as a webpage designed for

desktop use. It is important to note that mobile device technology as it

is today didn’t exist then, so there was no demand for a mobile

version. Its deep library of both major and independent music coupled

with intuitive design garnered critical success. CNet writes: “Pandora

offers an enjoyable way to discover new music--especially when you're at a loss as

to what to listen to next--and it's worth the minimal effort required to set it up.”9

Despite strong early reviews, the service began to constantly battle

bankruptcy due to issues with artist royalty payments and loss of market share to

superior platforms such as Last.fm. In a last-ditch attempt to save itself, Pandora

designed and launched the iPhone and iPod app in 2008. While the desktop service

was overshadowed by competitors like Last.fm, the move to mobile platforms-

where there was no competition, was revolutionary. By keeping the same features

8
Anderson, Chris. Free: The Future Of A Radical Price. Audiobook. Accessed
December 3, 2010. <http://bit.ly/RulP3>
9
CNet. Pandora Review: Music Services Review. Accessed December 14, 2010.
<http://bit.ly/i62mgG>
 A. Magrini 9

as the desktop platform while streamlining them for mobile use, the service

rejuvenated itself. In one year [2009], Pandora went from near bankruptcy to

posting nearly $50 million in revenue.10 Currently, Pandora now has over 48

million users with upwards of 35,000 new users signing up daily, and has expected

revenue of $100 million for 2010.11

While Pandora is a single success story of a service redefining itself

through use of a mobile app, there is ample opportunity for any music company.

With the recent paradigm shift from physical sales to digital downloads, the need

to go mobile is an absolute necessity. Hand-in-hand with this notion of going

mobile is the need to design an app that provides users with a unique experience

and allows them to directly connect with music. Developing and maintaining a

user-friendly app is an expensive process, however if it finds a foothold with

consumers it can be tremendously successful (if not profitable).

The ultimate goal for music companies is to “turn passive users into

fanatical fans,”12 and mobile applications are the best platform suited to do so.

10
Miller, Claire Cain. New York Times: How Pandora Slipped Past The Junkyard.
Accessed December 14, 2010. < http://nyti.ms/hS9STv>
11
Miller, Claire Cain.
12
Marcone, Stephen. Professor, William Paterson University. Date of quote unknown.
 A. Magrini 10

Exhibit 1

Apps Webpages Winner

Cost Development, Developers have Webpag
implementation more experience. es
expensive. High % of Costs include
revenue goes to development,
provider(s). domain registration,
hosting, and SEO.

Amount of Unlimited control in Design and graphics Apps

Control design. OS-powered limited by the
devices allow for constraints of the
expanded use of Internet and
 A. Magrini 11

pallete, graphics. browser.

Usability Transparent design No connection = no Apps
mechanics allow for a Internet. Linking
streamlined user between pages can
experience. Impossible be clunky. Infinite
to connect between connection between
apps. pages.
Maintenance Users must be pushed Developers only Webpag
new updates by need to manipulate es
developer to one string of code to
update/patch bugs. fix issues. Users are
Updates Cause breaks unaware of changes.
in user experience, and
may cause a lack of
interest over time.
Security Apps sanctioned by OS Susceptible to attack Apps
developers protected via hackers, trojans,
by their programming viruses. Users must
exercise caution
downloading as if on
a desktop computer.
Overall While expensive to Considered the Apps
start and costly to standard on desktop
maintain, well- computers,
designed apps provide webpages on mobile
the user an are an inexpensive
unparalleled means of providing
experience. content, yet
ultimately cannot
compete with the
usability of apps.