Samsung To Acquire Digital Content Providers In Battle For Mobile Supremacy
"The message we're getting from the top is to raise software capability, and buy rather than build, if needed," Kang Tae-jin, senior vice president of Samsung's Media Solution Center told Reuters. "Our focus on software is primarily aimed at driving hardware sales, rather than making money. We have a full range of handsets in so many countries, and, to better market our products, we thought it's better to start our own software business."
Samsung wants to wedge its way into being one of the top four digital music services within just three years--a tall order to be sure. However, Samsung does have its Music Hub service, which was built in part on mSpot (an acquisition earlier this year) and comes pre-installed on certain high-end Samsung handsets. Music Hub lets you upload and stream your own music collection to the cloud while also offering access to over 19 million tracks in the company’s online catalog.
There’s also speculation that Samsung, which Kang said has “deep pockets” from its hardware success, may make a play for a huge acquisition like Pandora or Spotify. In any case, Samsung is planning to buy rather than build its way into the top echelons of the business.
It’s a bit incredible to consider that, especially because Samsung doesn’t really care about actually making money on the software side. “In general, selling content won't make much of a contribution to the bottom line,” said Kang. “We see other new business opportunities associated with content.”