Samsung is currently on the lookout for mobile software companies that it can acquire to enrich the content it provides to customers through its popular Galaxy line of phones and tablets. According to recent reports, Samsung is looking to enter the digital media arena to compete strongly with Apple and Google, with particular focus on the music market that is estimated to be worth around $9 billion. This comes in as management’s policy is to increase software compatibility and purchasing other companies is an option if developing by itself is not viable.
So far, Samsung’s focus on software development is limited to improving sales of its hardware but there was never a revenue angle to it. Now, considering the spread of the company in various countries and with the sales figures it has, it is a good time for it to foray into the software market to consolidate its hardware sales and improve revenues. So far, Samsung has acquired mSpot, a mobile company based in the U.S. in an effort to boost its cloud based entertainment, particularly music and video and is trying to build its own repository of music and build a Music Hub to compete against Google’s Android Music Player and of course, iTunes.
Samsung is aiming to reach the top 4 music services with the Music Hub in three years’ time, in terms of both revenue and number of subscribers and acquisitions will definitely help shorten the time needed. Moreover, executives at Samsung believe that the mobile business is working well for Samsung which means that it has sufficient funds for future acquisitions. One of the best marketing ways is to sell Galaxy devices with pre-installed Music Hub but it is going to need better marketing if it is really going to make a mark. Samsung is willing to go for free trials and the like to get users hooked onto the service.
The move is essential for Samsung according to experts as the company is going to have to distinguish itself from other manufacturers in terms of more than just hardware. With a good software coffer, it can perhaps generate licensing revenues too if other hardware manufacturers want to use them on their devices. Though it might take time for the software services to kick off, the investment is going to be worthwhile for Samsung.
