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I agree with you that they're misunderstanding Spotify and how its revenue model isn't about CD sales. Artists and labels should _really_ forget about CD's or a
by jug 12y ago
I agree with you that they're misunderstanding Spotify and how its revenue model isn't about CD sales. Artists and labels should _really_ forget about CD's or anything physical. That's a long time ago that was a working business model now and belongs to the past. And so does the type of sales you can expect.
I think that Spotify is competing with radio and avoiding piracy in the process. So they should find Spotify useful; it's a very efficient bullet against piracy, much moreso than sending cease and desist letters. It works on huge masses, millions of people, and it doesn't need lawyers to be paid. And it often works.
As for payments, It hink we're moving into the radio comparison. It's about streaming, not ownership, so obviously they can't compare Spotify to sold CD's. Every time a user listens to a song on Spotify, the artist/label is paid. Not so with a CD. So a CD is more expensive, and better compared to iTunes. The iTunes with a business model in trouble and rumors that Apple is intending to change, where they have already started with iTunes Radio. Coincidence? No, I definitely think not and refer to my first paragraph.
So: Beat piracy, and provide radio for the 2010's. It's part radio where music is chosen at Spotify's discretion, part chosen by the user via playlists. So it's a net loss for music labels since the user is given much more control, but hey, times are changing. Users now have this today, so they will expect it tomorrow. If they stop supporting Spotify today, many of their users will be more inclined to move into piracy than ever tomorrow.
These times when they can go back... They've already passed.