![]() In Japan, the diffusion of smartphones lagged that in the US, as they were initially not so attractive for either cell phone carriers, who found feature phones more profitable, or consumers, who already enjoyed high functionality on their feature phones. As recounted by Pandora founder Tim Westergren and Slacker vice president Jonathan Sasse, these two services operated under different conceptions of online radio-the former as a way to discover music of similar attributes, the other as a curated experience-which were reflected in their marketing and their methods for building playlists. In the US, the existing culture of listening to radio as a passive music player, coupled with rapid diffusion of the smartphone, fueled the growth of services such as Pandora and Slacker. Why had the development of online radio and music streaming followed divergent trajectories in these two countries? Based on interviews with media executives, consumer surveys, and strategic analysis, this chapter posits that differences in the conception of traditional radio, as well as business practices, led to higher acceptance of online radio and music streaming in the US than in Japan. "In 2013, online radio reached 45% of the US population but only 13% of the Japanese population (Arbitron 2013 RIAJ 2013). ![]()
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