Next to a blue, custom-built MOG truck covered with pieces of nautical rope - which can be seen around Austin during SXSW - Billboard.biz caught up with company CEO David Hyman about the company's upcoming iPhone and Android music subscription apps.
The mobile service will cost $10 per month and let users experience the feature-rich service on their mobile phones. Since MOG offers on-demand streaming, users can select artists, songs and albums without the restrictions placed on webcasters. One key feature: The ability to save songs to the mobile device for offline listening.
You created a service that gets around DMCA restrictions imposed on webcasters.
Having radio in the car with no DMCA restrictions is incredible.
What about marketing and the rollout?
We’re taking a much more conservative approach than our competitors with regards to things like giving away music for free to drive subscriptions. We haven’t seen that model work. What we’re trying to understand is the lifetime value of a MOG subscriber. If the average subscriber stays on for two years, you start to build a model of knowing what you can spend to acquire customers. I think you’ll see us get very aggressive on search engine marketing, Facebook marketing, a lot of paid advertising that provide real return on investment. Not to mention a lot of cool viral things we’re working on. One will launch next week.
What about your European plans?
We’re launching this summer, in the UK only. Pricing will be comparable: 10 pounds per month plus VAT and five pounds for the online only version.
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