Music labels needs to get apps into users' hands and stop getting hung up on licensing fees, said Matt Murphy, partner at Kleiner Perkins Caufield & Byers.

Their $200 million iFund has invested in 15 iPhone apps including Shazam, a hit music recognition service. “The main thing is to get the app in front of as many users as possible,” Murphy said during a morning talk with Billboard editorial director Bill Werde at the Music App Summit in San Francisco. There's already around 250,000 apps in the nascent, two and a half year old industry, and the space is evolving very fast.

It takes 50,000 to 100,000 daily active users to prove the mainstream viability of an app, yet labels want high revenue share guarantees up front, instead of exchanging content for exposure, like they can get on hit iFund investment Nightclub City. With social media mavens Justin Bieber and Lady Gaga cresting one billion views on YouTube, Murphy heralded the mobile app space's untapped potential for creating long-term engagement between the artist and their fans.


FOR FULL COVERAGE of Billboard's Mobile Entertainment Live Music App Summit in San Francisco #MEL2010 click here.