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Spotify arrives to shake up SA music industry

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The global leader in music streaming has arrived in South Africa, and is set to shake up the industry, writes ARTHUR GOLDSTUCK .

The final death knell has been sounded for the thousands of iPods still in use in South Africa. Due to the high cost of streaming music via mobile data, many have held onto the one-time standard in storing music that was bought or copied onto a portable device.

That is about to change, as the world leader in music streaming, Spotify, was formally launched in this country yesterday. And it making a big play for the local audience.

“Our product stands for discovery: discovering new music and music you will like,” says Michael Krause, Spotify MD for Europe, Middle East and Africa. “We have local and international artists. Local content is so important which is why we made a huge effort to get local artist licensing.”

Krause stresses that Spotify’s arrival would be a boon not only or music lovers, but for the artists as well.

“It will give all the artists access to over 159-million customers, so we hope more South African artists will have great exposure outside the country, and also to local fans who will discover new artists they didn’t know. We hope more artists will be able to make a living off our service.”.

Spotify cheat sheet_Final

And there is one other massive potential benefit.

“Streaming is a key driver for industry growth in general,” says Krause. “Music streaming really helps to boost markets, even where there was a decline because of digital music. It has changed markets back to growth. These are features we hope to emphasise in South Africa.”

Spotify is available in both a free version, supported by advertising, and a paid version, which will cost R60 a month – as little as half of the $10 price tag in the United States. This positions it at the same price as other major streaming services in South Africa, like Simfy Africa and Google Play Music.  As with Simfy, users will be able to download music onto their smartphone when in a Wi-Fi zone, and play it offline when only expensive mobile data is available.

The one fundamental difference to other streaming services, however, is that few users will experience a difference between music available locally and internationally. That means current users who have been “cheating” by signing onto the American service won’t be disadvantaged when they switch.

“All South Africans can simply change the country and payment mechanism so that they can pay the local pricing,” says Claudius Boller, Spotify MD for Middle East and Africa. “The interesting thing is that it’s the same music, so you don’t lose any of your playlist.

“Our standard international offer is live in this market, and there will be more local content available. It’s a very tiny amount of content that may not be available due to licensing rights. We’re a 100% legal service, so we have everything licensed.”

Krause says that Spotify has had the African continent in its sights for a while, but chose South Africa as the continent’s launch pad due to a combination of music culture and better connectivity. Not mentioned in this context is the fact that, because the service currently requires credit or debit cards, Nigeria poses particular challenges. Many online services do not accept credit card from the continent’s largest music market

“Not everyone has a credit card available,” Krause says diplomatically. “Other payment options will come after the first launch. We will make sure we have all payment possibilities so that people have no boundaries.”

Meanwhile, the South African launch coincided with the service going live in three other countries yesterday, namely Israel, Romania and Vietnam.

Spotify is expected to make a similar impact on streaming music in South Africa as Netflix made on the video-on-demand industry. Netflix came into a market that had been gearing up for its arrival, but it still cleaned up, thanks to a vast and fast-growing catalogue of original content.

This still left room for a variety of niche players, like Digital Entertainment on Demand (DEOD), which emphasis extreme and school sports, Kwese Play, with a strong African focus, and Cell C’s black, which fills various gaps in between.

Music streaming,  on the other hand, does not lend itself to providers creating their own content, nor to artists providing exclusivity to one outlet – although there are exceptions. This means anyone in the market for a music streaming service is likely to choose only one. Spotify’s free version, along with the large existing fan base for its paid service, means it will be the first stop for most music lovers.

It is also likely to have one other effect that would not be encountered in developed markets. Because of the massive awareness that will spring from local artists punting Spotify to their fans, it will probably create a spike in app usage by South Africans who had migrated to smartphones but remained wary of data use.

In this way, it may well be a catalyst for growth in industries beyond only music.

* The Spotify app can be downloaded via the Android or iOS app stores or on the Web at www.spotify.com.  The premium service offers a 30-day free trial. 

Spotify facts and figures

Spotify offers the following curated playlists for South Africa:

Top Hits South Africa
New Music Friday SA
Hip Hop Juice
Sunday Praise
Gospel Greatness
House Nation
iGqom Le
Rock Essentials
Made in South Africa
Beste Pop
Maskandi Favourites
The Hip Hop Circle
Chilled Vibez
Sunday Feels  Feel Good Look Good
Nine 2 Five
Gym Beats
That Party Feeling
City Back 2 Kasi
SA Gold

Spotify stats:

  • Over 159 million active users
  • Over 71 million subscription users
  • Over 35m tracks in the catalogue
  • Over 2 billion playlists available
  • Over €8 billion paid to rights holders since launch in October 2008
  • Available across 65 markets including South Africa

Spotify Free features: 

  • Full catalogue access
  • Curated, personalised playlists, background play and charts
  • Listen to any artist, album or playlist on Android and iPhone handsets
  • Access to the full Spotify catalogue on desktop and tablet
  • Create playlists and share with friends on Spotify, Facebook, Twitter, text and email.

Spotify Premium: 

  • On-demand music with no ad interruptions on computer, phone and tablet
  • High quality streaming (320kbps)
  • Listen offline
  • Use Spotify Connect to play Spotify on a connected speaker, TV and car.
  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

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Huawei goes ultra-premium

Porsche Design and Huawei have launched the Porsche Design Huawei Mate RS in South Africa exclusive to MTN and retailing for R 26 459.

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The Porsche Design Huawei Mate RS boasts features like the world’s first dual fingerprint design, including an in-screen fingerprint sensor, the world’s first Artificial Intelligence (AI) processor and Leica triple camera with 40MP image capture.

“After the overwhelming success of the Porsche Design Huawei Mate 10 Pro in South Africa, we now bring you our latest offering, a perfect blend of innovation in a smartphone and luxury design,” said Likun Zhao, Vice President of Huawei Consumer Business Group Southern Africa. “From three-point security feature including facial recognition, rear fingerprint scanner and the new innovative in-screen fingerprint to the Leica triple camera system. it culminates in an unprecedented experience for our customers.”

The device incorporates Porsche Design’s signature design language and Huawei’s breakthrough technology.  The phone has a 6” 2K curved OLED screen and symmetrical look, minimalist feel and 8-edged 3D curved glass body.

High performance is symbolised by the naming of the smartphone: the term “RS” in the world of Porsche motorsport stands for outstanding racing performance.

Huawei provided the following information on The Porsche Design Huawei Mate RS benefits and features :

·         The world’s first dual fingerprint scanner for enhanced convenience, allowing users to wake and unlock the device simply, thanks to an in-screen fingerprint sensor. Hover to wake the device, touch to unlock it

·         The winning combination of Leica triple camera with 40MP RGB sensor technology and exceptional photography powered by Master AI. This combination puts effortless, eye-catching photography at the fingertips of those looking to immortalise their favourite moments. Combined with 5 x hybrid zoom, and the world’s first AI image stabilisation on a smartphone camera ensures photography lovers can capture the best shots with exceptional clarity in almost any situation

·         The Porsche Design Huawei Mate RS is the first Huawei handset to allow quick wireless charging, making it even easier to keep the phone topped up and ready to go and, thanks to its long lasting battery, users will easily be powered through the busiest of days

·         An ‘intelligent’ smartphone, the powerful AI processor automatically tailors the performance of the phone according to how it is used – constantly learning, understanding and anticipating needs, it is the perfect personal assistant for the pocket

·         256GB of internal storage means those constantly on the go and constantly on their phone can be worry free

·         Dual SLS (super linear system) speakers with DOLBY ATMOS enable users to have a superior experience, with the best immersive surround sound and entertainment on the go

·         Splash, water and dust resistant, which means there is no need to worry about damaging the device in the rain or accidentally dropping it in water

Jan Becker, CEO Porsche Design Group, said: “Both Porsche Design and Huawei seek to imagine and develop products that stand for precision and perfection, intelligent functionality and highly sophisticated design. Our aim was to create an outstanding device that goes one step further. We believe we have reached this goal by taking our partnership to the next level.”

Porsche Design and Huawei have worked in tandem to develop a smartphone that fuses together the two brands’ DNA, wealth of experience in design and technology, industry-leading expertise and exceptional performance. Through the use of colour in the device’s body, software themes and accessories, the new handset is accentuated with Porsche Design’s distinguished aesthetic and purist, minimalist feel.

The Porsche Design Huawei Mate RS will be available to purchase exclusively from MTN at R 26 459.

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Cross-channel chat launched

Clickatell has launched a cross-channel live chat service, Touch Go, that transforms omni-channel customer care.

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It enables live chat across a company’s website as well as social platforms (Twitter and Facebook) and mobile apps, bringing customer care and engagement into a single business platform.

“Today’s consumers expect to engage with your brand on the digital channel of their choosing,” says Deon van Heerden, Clickatell Engage CEO and Group CFO. “They want to message your business and instantly have queries resolved, find the information and services they are looking for, without the need for a voice call. Clickatell’s Touch Go makes that happen with the right level of capabilities for businesses of all sizes.”

Businesses can start using Touch Go immediately, with a free Starter option. Touch Go requires no credit card for sign-up and is fully featured with a simple setup process. It offers customisable branding, a unified chat desk business application as well as reports and analytics.

As the business scales up its digital customer care, it can opt-in for the Touch Enterprise offering. Touch Enterprise is designed for scaling up customer care efforts through advanced capabilities including AI driven virtual agents, sentiment analysis, automated workflows, enterprise integrations and in-channel mini-applications.

“Customer care has become a defining factor for sustained business success ” says Nirmal Nair, Clickatell Engage EVP Product & Marketing. “In an ever-increasing mobile native world, customers often choose to interact digitally, but they also expect to be able to reach a human immediately, should they need. Monitoring multiple channels and providing immediate action becomes challenging with siloed deployments. Touch’s unified solution allows businesses of all sizes to provide the customer delight in a simple modular approach.”

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