Spotify Doesn’t Sound So Great to Some Artists – Businessweek

Spotify

Image by kaioshin via Flickr

Adele’s 21 was the biggest album of 2011, hitting the top spot in dozens of countries and garnering six Grammy nominations in November. Her latest single, Someone Like You, is playing everywhere. Everywhere except Spotify.

Adele is among a vanguard of artists including Coldplay, The Black Keys, and Tom Waits who have opted not to make their latest albums available on streaming-music services like Rdio, Mog, and Spotify, where users pay a monthly fee of $5 to $10 to listen to as much music as they want, or listen for free with occasional advertisements. Artists earn money from such services every time their songs are played, but some believe the revenue doesn’t match what they’d get from outright sales.

“I am very concerned,” says Dave Holmes, Coldplay’s manager. “Spotify competes with download stores” like iTunes, he says. He plans to keep the album released on Oct. 24, Mylo Xyloto, available only as a purchase for several months. “Like all of Coldplay’s other titles, the new album will be on [Spotify] eventually,” he says. In effect, Holmes and like-minded managers are mimicking the so-called windowing practice pioneered by Hollywood. Movie studios usually stagger the release of films, first to theaters, then on DVD, and later on cable channels and streaming sites like Netflix (NFLX). That strategy maximizes revenue for movie and TV producers, says Needham analyst Laura Martin, but could be a problem for streaming sites if the practice becomes widespread in music. “It certainly hurts Spotify’s perceived value if the consumer frequently searches for songs that aren’t there, even if that represents a small fraction of titles,” she says.

via Spotify Doesn’t Sound So Great to Some Artists – Businessweek.

Strange Random Digital Media Quote:

Digital media has destroyed much of the magic and mystery of the medium. – John Dyer

Enhanced by Zemanta
Advertisements

Posted on January 15, 2012, in Article and tagged , , , , , , , . Bookmark the permalink. 1 Comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: