MOG Grows Fastest Among Facebook's On-Demand Music Apps
MOG Grows Fastest Among Facebook's On-Demand Music Apps

Music subscription service MOG plans to get into the freemium business, CEO David Hyman said Tuesday during a panel at the Rethink Music conference in Boston.

Writing at Evolver.fm, Eliot Van Buskirk explained that MOG will be "revamped" into a multi-tiered service "somewhat along the line of Spotify in the next couple of months."

According to Van Buskirk, Hyman said the new version of MOG will include freemium option that will allow users to get a clear view of the service but that it will "stop short of the 10-hours-and-up-for-free Spotify model." MOG currently offers a free 14-day trial period.

The freemium model gets a lot of attention because it is the backbone of European music service Spotify, which has 10 million users and 1 million paying subscribers. The existence of a free, ad-supported level of service can be credited with the service's quick success, although an exemplary product and smart partnerships (with telecoms, for example) are also factors.

But the freemium model is going through some growing pains. Just last week, Spotify cut back the amount of listening available in its free service. Even though Spotify's free service is integral to the product, it is widely believed the company made the change to ease the worries rights holders have about the freemium business model.

One has to wonder how important a free level of service will be to subscription services. U.S. consumers have little interest in paying for such services and remain unmoved by the purported value of accessing 10 million songs from a variety of devices. Instead, consumers are content to use popular free services like YouTube and Pandora.

But Hyman seems convinced the U.S. market is ready for cloud-based services like MOG. "It's a massive market, and there's going to be more than one player," Hyman said.