Illegal downloads are still a problem, but now the artists and label are dealing with an even bigger one: the increasing power of Spotify. The Verge revealed this week that Spotify - the largest streaming service in the world - is pushing labels to lower fees in a bid to become more profitable. And the industry has no choice but to play ball.
Years ago when Napster flood college dorms in the late-90's, I was seemingly the only vocal person I knew against the idea of file sharing. This was not surprising. Who doesn't want access to every single Zeppelin album at the click of a mouse? Friends came back from their first years away at school with cases bursting with burned cd's. All illegally downloaded, but musicians are rich and famous so it doesn't hurt anyone, right?
I was the square. My argument was simple: if people get something for free, eventually it will devalue the product's worth. Recording music would morph into a risky business model with no real financial upside. The cost and time it takes to produce a quality recording is high, and music being a subjective artform gives no real indication is that product is going to sell. Take away even the possibility of selling and the recording aspect of the music business becomes a sideshow, a marketing tool for touring and selling t-shirts instead of the way an artist earns a living.
Spotify might be a better alternative to rampant illegal downloading, but it still cause the industry major problems. The devaluing of the product continues, but without the social and moral implications of illegally acquired goods. Everybody wins! A premium user pays $10 a month for unlimited access on any device.
$10!
That's less that one album on iTunes, and two bucks less that a physical cd. A great deal for the music lover. The problem is the value has now been placed on the service, rather than the art. Why would anyone buy album on iTunes at $9.99 when Spotify gifts them everything for the same price? And in order for the company to make money in a fledgeling sector, squeezing the artist is the faster way.
Anytime there is a seismic shift in the way consumers purchase content, things take a while to shake out. This NY Times article from last month predicts that when the services mature and a higher percentage of users are exclusively streaming, revue for all parties - including artists - will rise. That is a rosy outlook for a industry in a tough decline.
I'm just afraid the damage has already been done.
A couple more great articles to read about the changing industry:
Pitchfork: "Making Cents"
Vulture - "Grizzly Bear Members Are Indie-Rock Royalty, But What Does That Buy Them in 2012?"
Everything on this site: http://thetrichordist.com/
Spotify might be a better alternative to rampant illegal downloading, but it still cause the industry major problems. The devaluing of the product continues, but without the social and moral implications of illegally acquired goods. Everybody wins! A premium user pays $10 a month for unlimited access on any device.
$10!
That's less that one album on iTunes, and two bucks less that a physical cd. A great deal for the music lover. The problem is the value has now been placed on the service, rather than the art. Why would anyone buy album on iTunes at $9.99 when Spotify gifts them everything for the same price? And in order for the company to make money in a fledgeling sector, squeezing the artist is the faster way.
Anytime there is a seismic shift in the way consumers purchase content, things take a while to shake out. This NY Times article from last month predicts that when the services mature and a higher percentage of users are exclusively streaming, revue for all parties - including artists - will rise. That is a rosy outlook for a industry in a tough decline.
I'm just afraid the damage has already been done.
A couple more great articles to read about the changing industry:
Pitchfork: "Making Cents"
Vulture - "Grizzly Bear Members Are Indie-Rock Royalty, But What Does That Buy Them in 2012?"
Everything on this site: http://thetrichordist.com/
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