Samsung Refocuses on Software Build-Up, Digital Contents to Create Growth Opportunities
By Erik Pineda | September 27, 2012 11:29 AM EST
Samsung is looking to capture more segments of the global tech business and it plans to do so by packing its handsets with attractions that would keep consumers from putting down their devices, like the bestselling Galaxy S3.
Right on the cross hair of Kang Tae-jin, a senior vice president for Samsung and its chief for Media Solution Centre, is the Music Hub, the Asian tech giant's online music service that was recently given a major makeover this year.
More juice remain to be squeezed from Music Hub, Mr Kang told Reuters on Thursday, disclosing too that he intends for the Samsung service to be developed further and join the major league, the sooner the better.
"We want to grow the Music Hub to rank in the world's top four services within three years in both revenue and subscriber numbers," Reuters quoted the Samsung executive as saying.
He was referring of course to the dominant online music providers - Android's Music Player, Apple's iTunes and Amazon's Cloud Player - at the moment which have largely lumped music downloads, streaming and internet radio into a single portal.
And they have been reaping tremendous success so far as the tech segment itself is generating annual revenues of about $US9 billion worldwide - an income jar that Samsung hopes to dip its fingers to in a major way and soon.
Pushing Music Hub into the forefront of the global digital music market benefits Samsung two ways, Mr Kang said, and the first consideration is for the South Korean firm to consolidate its stature in the current tech setting.
By harnessing its own digital content capability, that means delivering quality digital products that consumers the world over would enjoy and willing to buy, Samsung believes it will erase the dent on its reputation created by the company's long-running patent dispute with Apple.
And higher regard on Samsung's in-house softwares would lead to more company products flying off the shelves, Mr Kang said.
"To better market our products, we thought it's better to start our own software business ... Our focus on software is primarily aimed at driving hardware sales," Mr Kang told Reuters.
The build up in software capability will be achieved by shopping for existing music online businesses that can be integrated with Music Hub, such as the case of mSpot that Samsung has acquired earlier this year and became part of its online music service.
Next in line for Samsung, analysts said, are emerging services Pandora Music and Spotify, speculations that Mr Kang has refused to discuss for now.
He simply hinted: "We are very serious about content business, as we showed with the acquisition of mSpot ... and we have deep pockets."
Mr Kang clarified too that Samsung's new software thrust is but a drop on the bucket of the firm's overall strategy of pursuing growth strategies. Digital contents, he added, are valuable not because of the hard cash that they deliver but more so of the opportunities they opened up.
And Samsung intends to engineer these opportunities rather than wait for them to happen, Mr Kang said.
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