Two weeks ago a US market research company caused a panic in the music business when it reported sales of MP3s had declined. DRM has all but disappeared from digital music, while music catalogs and retailer choice have grown… and yet the volume of digital song sales fell. Ironically, it’s the major labels’ darling Spotify that’s bearing the sharp end of the backlash.
Two thirds of people don’t download unlicensed music at all, it’s a minority pursuit. But that “honest” mid-market is not only losing the habit of buying CDs, it hasn’t acquired the habit of buying digital songs either. NPD found that between 2007 and 2009, about 24 million Americans stopped paying for music in any form.
Continue reading “Home streaming is ‘killing music’”
Ek said the buying habits of 80 per cent of Spotify users were unchanged, 10 per cent were buying more music, and 20 per cent were buying fewer sound recordings. No, this doesn’t add up to 100
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A month on, I’m still reading that Spotify’s financials and subscriber numbers are a mystery. Not here, they’re not.
Move over Fifty Quid bloke – and make way for 14p man.
Statements seen by The Register indicate that’s all the hit music service Spotify makes per user from its advertising-supported business. The difference is the middle-aged spender coveted by the movie, games and music businesses plunks down £50 per week – but Spotify earns its 14p per user per month.
The figures – which we can disclose for the first time – make for interesting reading. They confirm Spotify’s explosive growth – topping half a million registered users in the UK in May from a standing start in January.
But revenues at this stage are negligible. Advertising income was just over £82,000 last month, hence the 14p figure. We can also reveal that despite the phenomenal growth, the takeup of the tenner-a-month subscription program is small, and as a percentage of users, is falling.
Fewer than 17,000 UK users were signed up to Spotify Premium in May, an increase of 2,700 over the previous month – despite the service adding 170,000 registered members overall.
Continue reading “Spotify's numbers – an exclusive peek”
The music business has set up a lemonade stand outside its house and it’s giving away lemonade for free. Not surprisingly, people love the free lemonade, and the stall has drawn a large and enthusiastic crowd. The stand is called Spotify.
The business justifies this because it’s so easy for us to get their music for free elsewhere. With very little effort, you can obtain it simply by appending a magic word (‘torrent’ or ‘rapidshare’ usually do the trick) to the artist you’re looking for in Google.
Acquiring it may not be pleasant: doing so may help support a neo-Nazi with a grudge. But many people are prepared to hold their breath, because you can fill up your iPod or phone with music without paying any more than your monthly internet fee. That fee is a bit of a bummer – why can’t it all be free? – but a modest outgoing on a computer and an internet connection saves a lot of money.
The business looks down on this free and easy access to its assets quite understandably. Because if it’s all free, then investment in making sound recordings will evaporate. Only fools invest in businesses which aren’t going to make any money.
You’re following, I hope.
So to compete with businesses which don’t make any money and give away free music, they’re backing a business which doesn’t make any money, and gives away music for free. It’s genius.
But it gets better.
Read more at The Register