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The number of people being monetized by Spotify is great for the aggregated interests of all the labels on the service but may be meaningless to individual labe
by jsz0 15y ago
The number of people being monetized by Spotify is great for the aggregated interests of all the labels on the service but may be meaningless to individual labels/artists. If they are indeed losing record sales and Spotify isn't making up for the difference it must be pretty hard to justify staying there. The argument about piracy could be weak too depending on how many pirates go on to buy the music. 1000 streams for 1 cent each = $10 vs. 10,000 downloads that turns into just 2 sales $10 each = $20. (fake made up numbers but they illustrate the point)
- eric-hu 15y agoTo play the devil's advocate in favor of mikeknoop's comment: The claim is (a - n) + b < a : n > 0 a: record sales (a-n): record sales minus would-be sales due to spotify b: additional profit spotify generates from would-be piraters The fallacy (IMO) of the label is that "a-n + b" is in all situations less than "a". They're deciding that it's less profitable to distribute content with spotify without examining what "b" is. You may very well be right that a spotify-license system is less profitable. I think it's jumping to conclusions to decide this, though. "b" (the profit generated from would-be piraters) is a study-able quantity, and should be measured before making any claim.