Ad revenue models in trouble?
I think this article brings up an interesting point that may or may not have been considered in the music business. All sorts of Music 2.0 firms are popping up with expectations of ad-based revenue models, but what happens if advertising proves to not work out as well as expected? I am not sure that many of the social networking sites such as imeem and last.fm would be able to survive or offer the same quality of product that they do now because of the inevitable drop in user base if a subscription becomes required. Perhaps a mixture of models might be the most sound business plan so as to insulate from advertising downturns while keeping payments to a minimum for users?
